The man who lit the fire for the stock crash says it's 'fraud'

3 minutes
The man who lit the fire for the stock crash says it's 'fraud'

The man who lit the fire for the recent market crash: the stock movement is now ruling the market for the second time this year, saying that the current trading frenzy isn't market manipulation.

It's just old fashioned buying and selling in a market for a stock.

What is market manipulation? You have people who are buying and you have people who are selling, right? If you have a new intent -- if somebody goes down there and said oh, BlackBerry has this fraudulent hologram cellphone that does whatever and it's a lie, that is market manipulation. And that's fraud, Jaime Rogozinski said on Yahoo Finance Live. But people coming together and saying let us just push this price to the moon and be really transparent and no defrauding being taken place, that is what the market is.

In 2012 Rogozinski founded the popular WallStreetBets trading forum on Reddit. At that time, Rogozinski was limited and looking for a more active way to trade investment ideas within a community. Come up with WallStreetBets.

While Rogozinski is no longer affiliated with WallStreetBets to say his influence is live in the trading world is an understatement.

WallStreetBets has become the traditional trading desk among a new generation of investors who are aggressively pushing up shares of struggling companies such as AMC, GameStop and BlackBerry.

And this group with its own independent language of its own not unlike that found on Wall Street trading floors continues to gain on its growing influence.

The shares of AMC are 8% higher this year, despite the company selling shares several times to capitalize on them. The stock of GameStop has increased more than 1,000% on the year as traders firmly believe new Chairman and former Chewy founder Ryan Cohen could transform the company.

As Rogozinski said on the MEM stock movement: you have now a collective of millions of market beta testers on the actual stock market, making it more efficient and more productive.

Brian Sozzi is an English editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter BrianSozzi, and on LinkedIn

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