Here is something that happens:
Aug. 11 (WSJ) – U.S. Securities and Exchange Commission reviews Melvin Capital Management’s risk controls and investor disclosure after the hedge fund was crippled by the meme-stock rally last year, people familiar with the matter said.
The regulator has contacted hedge fund investors in recent months as part of an investigation into what Melvin founder Gabriel Plotkin and other senior executives told them following the meme-stock rally in January 2021 and whether he misled investors when he raised funds last year.
Another thing going on is it:
Aug 11 (Reuters) – Equity trading platform Robinhood Markets Inc is facing allegations of market manipulation over restrictions it imposed on trading during last year’s ‘meme stocks’ rally , a US judge said on Thursday.
U.S. District Court Judge Cecilia Altonaga in Miami said in the ruling that investors in GameStop Corp, AMC Entertainment Holdings Inc and seven other stocks can file a proposed class action lawsuit alleging the restrictions artificially depressed stock prices.
The lawsuit was one of several cases brought against the retail platform after it temporarily barred customers from buying certain hot stocks in January 2021, including GameStop and AMC.
So to sum up, the SEC is looking at the circumstances in which a hedge fund ended up losing $6.8 billion in institutional money in a frankly silly way, while excluded bettors on the opposite side of the trade pursue their cause via class actions. Let it align with the long-standing principles fair securities regulation is something to consider in the comment box.
Elsewhere on Friday. . .
— The best interviews of all time with accused fraudsters (Dirty laundry / Under-stacking)
— Everything you need to know about “Dimes Square” (Defector)
— An interesting LTIP in Aim-cite MJ Hudson (Twitter thread)
— John Mackey, CEO of Whole Foods “concerned” that “the socialists are taking power” (New York Post)
— The rise of the startup side (voice)
— Will non-believers really believe anything? (Astral Code Ten)
— Has technological progress stalled? (Stage of researchers)
— Why thinking hard makes us tired (Nature)
— Three people believing they were Jesus were once brought together for a very unethical experience (IFL Science)
— A journalistic copypasta template (Dynomight)
— The Secret Life of the Remains (New Atlantis)
— Hot goats in your area (Goat rental)