6. Is This Illegal?
While the hedge funds are crying market manipulation, the Redditors have not actually done anything illegal, as far as we know. This will be left to the Securities and Exchange Commission to decide.
The commission will have to prove that the Reddit traders knowingly spread false information in order to accuse these Redditors of market manipulation. The commission said it was working with regulators to “assess the situation and review the activities of regulated entities, financial intermediaries, and other market participants”.