See, this is why someone is going to jail. This explanation is wrong. Someone lied to you, and they probably lied to you to make this look like a sure bet so that you'd buy (and thus pump) a stock that is otherwise going to crash, so that they can unload their position before it does. You got scammed, and the person who did it is guilty of a crime.
FWIW: Short leverage higher than 100% is not naked selling. It just means (as an example) that you borrowed a share, sold it, then later on that buyer loaned the same share back to you, and you sold it again. This is not a good idea, but it's not naked selling (which is itself securities fraud).
yes the GME crowd-source scenario is definitely market manipulation, it is the very definition of it. the question is, can any single person or group of people be identified as culpable? that is the beauty of it, in a way.
See, this is why someone is going to jail. This explanation is wrong. Someone lied to you, and they probably lied to you to make this look like a sure bet so that you'd buy (and thus pump) a stock that is otherwise going to crash, so that they can unload their position before it does. You got scammed, and the person who did it is guilty of a crime.
FWIW: Short leverage higher than 100% is not naked selling. It just means (as an example) that you borrowed a share, sold it, then later on that buyer loaned the same share back to you, and you sold it again. This is not a good idea, but it's not naked selling (which is itself securities fraud).