True, but the play was to cop CUMMIES at $0.002, not $0.28 lol. Loving the DumbMoney entering this space recently.
This is a good read I put the topic of discussion below
CNA Finance - The Latest Stock Market News and Opinion
The Latest Stock Market News and Opinioncnafinance.com
Improper Use Of Dark Pools
Dark pools are a relatively new concept for me. In fact, I didn’t even know they existed until one of my readers sent me information on them and how they’re being used to manipulate the price of AMC stock.
Not surprisingly, further research showed that the reader was correct.
Dark pools were created as a way for institutional investors to sell blocks of shares without these shares causing changes to the stock price. Think about it this way…
An institution wants to sell 200,000 shares of stock in the open market. That’s not all going to sell at once, and with each block of sold shares, the price will fall. So, these institutions use dark pools to hide the fact that they’re selling shares, allowing them to get more money.
That, alone, is already pretty shady, but today’s hedge funds are using dark pools in ways that they were never intended to be used.
Instead of running sales through dark pools, they’re running buys through them. Think of it this way, hedge funds that want the price of AMC stock to fall take out massive short positions and sell them into the open market without the use of dark pools. Then, when retailers buy stock, dark pools are being used to hide those buys, thus the demand is not being properly included in the supply/demand equation, making it look like selling pressure is more than what it is and buying pressure is less than what it is, ultimately manipulating the price downward.
Synthetic Share Creation
Hedge funds also seem to be using sneaky ways to create synthetic shares of AMC that are then dumped on the open market. Why would a hedge fund want to create synthetic shares? To tilt the scales of supply and demand of course.
One of the ways they seem to be doing this is by shorting stock that simply doesn’t exist in a process called naked shorting, which was outlawed in 2008 as it helped to lead to a global financial crisis. I’m guessing that hedge funds didn’t get the memo or simply don’t care.
