Cryptocurrency Q&A Is short squeeze illegal?

Is short squeeze illegal?

JessicaMiller JessicaMiller Wed Dec 25 2024 | 7 answers 1795
I want to know if short squeeze is considered illegal in the financial market. Is it a violation of any laws or regulations, or is it just a market phenomenon that is allowed to happen? Is short squeeze illegal?

7 answers

Alessandra Alessandra Fri Dec 27 2024
They have the expertise to identify stocks that are overvalued and bet on their decline.

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CryptoLegend CryptoLegend Fri Dec 27 2024
Their aim is to force short-sellers to cover their positions, thereby causing a sharp increase in the stock price.

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Ilaria Ilaria Fri Dec 27 2024
Short squeezes can occur naturally in the market due to various factors.

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ShadowFox ShadowFox Fri Dec 27 2024
Manipulation of the market through schemes to cause a short squeeze is deemed illegal.

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TaegeukChampionCourageousHeart TaegeukChampionCourageousHeart Fri Dec 27 2024
However, deliberate attempts to create such squeezes for profit are not allowed.

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