Massachusetts regulator probes ‘Roaring Kitty’s’ GameStop trades
One AmericaMAY 2024
GameStop Short-Seller Charged With $16M Fraud
Above: June 3, 2024: The Gamestop company logo is seen on display at the New York Stock Exchange during afternoon trading in New York City. Image copyright: Michael M. Santiago/Staff/Getty Images News via Getty Images
The Spin
Narrative A
The GameStop saga exposed the deeply corrupt nature of Wall Street's short-selling industry, particularly regarding "naked" short-selling— where investors sell more company stocks than exist, resulting in an artificial stock price drop. It's about time the government — whose regulators often work or worked for hedge funds — stopped ignoring the crimes of its friends on Wall Street and prosecuted these market manipulators.
Narrative B
Despite what many have heard, the GameStop saga wasn't some corrupt backdoor scheme. Short-selling, when done correctly, is a healthy part of trading that can identify fraud and help others hedge their trades. The inorganic retail trading frenzy of GameStop ended up hurting a lot of novice traders while big firms made millions. Instead of attacking short-selling, we should go after the larger system of central banks printing money for the rich as the poor get poorer.