This is absolutely the right take.
Something is rotten in these highly shorted names.
The more the general public learns about short selling abuses, short sale mismarking, FTDs and the complete lack of regulatory enforcement and oversight, the angrier they're getting.
Something is rotten in these highly shorted names.
The more the general public learns about short selling abuses, short sale mismarking, FTDs and the complete lack of regulatory enforcement and oversight, the angrier they're getting.
https://twitter.com/andrewrsorkin/status/1400197781785088004
There is an informed and fascinating discussion and level of research taking place in a decentralized way on social media. I don't think the SEC & FINRA have any understanding of the public disgust and upheaval, and if they think it'll eventually go away they're sorely mistaken.
This is building on the disgust of the bailouts and lack of criminal charges in the wake of the GFC. Now they're seeing companies being shorted and attacked, and retail investors are organizing and fighting back.
A lot of FinTwit makes fun of it, or focuses on gamification or retail investors' lack of sophistication, but if you do this you're missing a massive change taking place, which is facilitated by new tech and methods of sharing information and research.
The problem with Sorkin's take though is he thinks the market is not manipulated. While by and large that is true, that does not mean there's not manipulation taking place. I stand by my statement - something is rotten in these highly shorted names.
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