How lethally will the GameStock Fiasco affect the future of trading in markets? Should it be punished as a manipulation or another market factor that the traders should accept and strategize for.
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Market manipulations essentially boil down to the intent behind the actions.
In the case of GameStop, it is difficult to ascertain the intent of all the numerous small players of the market.
Even if the activity is deemed to be manipulation such that it is illegal, it is highly unlikely that any legal action will be taken against any of the participants, including the initial short-sellers, the “YOLO traders” of Reddit, the other participants who were riding the waves, and Robinhood- the broker which suspended buying on its platform causing large swings in the prices.