Because it's explicitly stated that buying stocks as part of a scheme to create a short squeeze is illegal. It's like your asking how driving 100 miles an hour is illegal.
Saying 'hey guys, these GME shares are cheap now as a result of a short sale and they might go up later' isn't a scheme to raise the price of a share. It's a calculated risk that may or may not work out in the buyers favor. Your own link provides resources on how to find shorted stocks.
A company purposefully buying its own stocks that were shorted by a hedgefund, in order to increase its own company value, would be a scheme.
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.
How is publicly, freely trading stocks that based on public, freely available information, illegal?
Because it's explicitly stated that buying stocks as part of a scheme to create a short squeeze is illegal. It's like your asking how driving 100 miles an hour is illegal.
Look at number #7.
https://www.sec.gov/investor/pubs/regsho.htm
Saying 'hey guys, these GME shares are cheap now as a result of a short sale and they might go up later' isn't a scheme to raise the price of a share. It's a calculated risk that may or may not work out in the buyers favor. Your own link provides resources on how to find shorted stocks.
A company purposefully buying its own stocks that were shorted by a hedgefund, in order to increase its own company value, would be a scheme.
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.