Unhedged The new pump and dumps
93 snips
Aug 21, 2025 George Steer, a US markets reporter at the Financial Times, dives into the world of 'pump and dump' schemes—fraudulent practices that entice investors only to see stock prices collapse. He discusses how social media fuels these scams and the psychological tricks scammers use. The conversation highlights the growing concern over investment fraud, the need for investor vigilance, and strategies to identify stock manipulation. With anecdotal humor, they also explore real estate investments and the cultural significance of envy in finance.
AI Snips
Chapters
Books
Transcript
Episode notes
Rapid Pump-And-Dump Pattern
- Small US-listed Chinese companies can be pumped from near-zero to massive valuations quickly without fundamental reasons.
- Insiders often sell large stakes on a single day, triggering abrupt crashes that devastate retail investors.
How Scammers Warm Up Targets Online
- Victims are lured online via social ads that route them into WhatsApp groups with fake broker endorsements.
- Scammers warm targets over weeks, encouraging small then larger deposits until the stock is pumped and insiders dump.
Small Float Enables Price Control
- Scammers target stocks with very small floats because they can control price with fewer shares.
- Companies often have executives holding most shares, leaving few tradable shares to be manipulated.
