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?
7 answers
Alessandra
Fri Dec 27 2024
They have the expertise to identify stocks that are overvalued and bet on their decline.
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.
Ilaria
Fri Dec 27 2024
Short squeezes can occur naturally in the market due to various factors.
ShadowFox
Fri Dec 27 2024
Manipulation of the
market through schemes to cause a short squeeze is deemed illegal.
TaegeukChampionCourageousHeart
Fri Dec 27 2024
However, deliberate attempts to create such squeezes for profit are not allowed.