(Reuters) – The U.S. securities regulator is reviewing social media posts for signs of potential fraud in frenzied trading of GameStop Corp’s and other companies’ shares, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The Securities and Exchange Commission’s examination of online posts is being done in tandem with a review of trading data to assess whether such posts were part of a manipulative effort to drive up share prices, the report said. A Reddit-driven rally has inflated stock prices for a number of previously downtrodden companies. (bloom.bg/3jgts2R)
www.forbes.com/sites/jackkelly/2021/01/29/the-securities-and-exchange-commission-may-look-into-possible-market-manipulation-made-by-reddit-day-traders-instead-of-the-short-selling-hedge-funds/?sh=27fb9aeb6161 Here is another great article explaining it. The journalist backs up reddit on how ridiculous this situation is