Gabriel Govinda,who went by the online name “Fibonarchery”,is facing hefty fines or prison time for market manipulation and the illegal spreading of information on a trading chat site.
It’s not often that the world’s biggest banks are portrayed as victims. But that is what happened when Archegos founder Bill Hwang and his chief financial officer were arrested yesterday.
Over a six-week period a chat group on messaging platform Telegram wreaked havoc on the ASX,working together to push up share prices before dumping the stocks on unsuspecting traders.
Shortly after the regulator’s warning a little known ASX stock saw its share price jump 7800 per cent after a flurry of promotional tweets.
Market regulators said insurer MassMutual,which employed online trader and YouTube star Keith Gill,failed to adequately supervise his activity at the heart of the “meme stock” frenzy.
Keith Gill,one of the most influential voices that pushed GameStop on Reddit,has been hit with a lawsuit that accuses him of misrepresenting himself as an amateur investor and profiting by artificially inflating the price of the stock.
How has a chain of videogame stores become a sensation? What’s a short squeeze? And why are hedge fund managers so nervous about it all?