Thread by @DawsonSField

The #ButNothingsHappening cases are moving from the banks to the Hedge Funds who are rigging markets to profit off short selling & other manipulation schemes.

finance.yahoo.com/news/hedge-fun…

Looking at collusion between Hedge Funds & market research firms to coordinate trades to illegally profit off news before it becomes public.

The investigation is being run out of Los Angeles, instead of NY where most of the markets are located...

Does that mean it grew out of other investigations conducted by those offices?

Looks like a major investigation into some big players, but hese are not people with name recognition to the public...
Of course these short sellers have been pushing to have the small investors who sabotaged some of their short sales by colluding to buy up stocks like Gamestop.

DOJ is looking for evidence of collusion & false statements about funding & relationships with researchers. I'm sure there will be #receipts & communications related to manipulating the markets...

Industry insiders are saying this will all go away, like it usually does, because FBI won't find the evidence of coordination between these short sellers...

Times have changed with investigators using AI & big data tools to indentify suspicious activity to narrow investigations.

Some researchers have been paid specifically to go after companies the hedge funds wanted to short sell. One even got a cut of the profits from the deals that occurred because his research panicked investors to sell stocks & allow short sellers to buy at lower prices.

The researchers get paid by the hedge funds, then write dodgy dossiers about the target companies. The companies' stock value drops & the hedge fund investors cash in on their short sell bets...

I was right about why this office has the cases.

They previously brought the cases against JPMorgan Chase for manipulating precious metals markets & US Treasury futures.

How did they find it? Big data analysis for suspicious trades to get probable cause to investigate them!!!

Looks like the investigation began before Gamestop but they have issued subpoenas as recently as October, probably since then too.

Fake news based on dodgy dossiers isn't limited only to the political realm. It can manipulate financial markets to allow thos involved in the manipulation to profit at the expense of honest investors.

Of course these hedge funds are exploiting holes in the regulations, but I wouldn't be surprised if many of the people involved were also involved in lobbying & helping write those rules to include the loopholes...