It says "a scheme to manipulate the price or availability of a stock in order to create a short squeeze is illegal." Telling people to buy a stock does not qualify as "a scheme to manipulate the price or availability of a stock." It is free speech and basic market mechanics. What robinhood and other platforms did to restrict trading and even liquidate their clients' shares without permission to save their parent company's bottom line was illegal price manipulation.
People are promoting the idea of buy and hold to create a short squeeze directly though. There is a difference in saying that there is a value play because a short squeeze may happen as an undervalued stock has high short interest. GME is vastly overvalued by any metric currently and there are tons of people promoting the idea that buying and holding will CREATE a short squeeze. It's a big difference.
It is illegal. It's explicitly stated as being illegal.
7.
https://www.sec.gov/investor/pubs/regsho.htm
It says "a scheme to manipulate the price or availability of a stock in order to create a short squeeze is illegal." Telling people to buy a stock does not qualify as "a scheme to manipulate the price or availability of a stock." It is free speech and basic market mechanics. What robinhood and other platforms did to restrict trading and even liquidate their clients' shares without permission to save their parent company's bottom line was illegal price manipulation.
People are promoting the idea of buy and hold to create a short squeeze directly though. There is a difference in saying that there is a value play because a short squeeze may happen as an undervalued stock has high short interest. GME is vastly overvalued by any metric currently and there are tons of people promoting the idea that buying and holding will CREATE a short squeeze. It's a big difference.