Stocks that are heavily shorted are most susceptible to Robinhood trading
ISTM the risk of a short squeeze (and manipulation thereof) increases rapidly as the magnitude of short positions increase. A stock that is shorted more than 100% (by one investor borrowing the stock to short, then another investor borrowing the same stock to short again) must almost surely experience a positive feedback loop if its price starts to rise significantly and investors attempt to buy "fictitious" shares to cover.
There's already Reg SHO in place to control shorting. Notably Rule 203 that requires short sellers to locate shares to short before shorting. It would not seem to be difficult to enhance this rule to require the location not only of shares to short, but shares of a company that has not been 100% shorted (or 50% shorted, or whatever threshold works).
https://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm
This wouldn't protect investors from getting squeezed, but it would seem to impede the feedback loop.
And how is RH trading different from free fast trading at ML or Fido ?
How is buying a lottery ticket different from investing in a stock? The recreation value of the former is greater while the expected return of the latter is greater. Robinhood as a platform offers more "fun".

They can browse the 100 most-held stocks among fellow users for inspiration. An entertainment ecosystem has risen up alongside Robinhood; TikTok videos under #robinhoodstocks have millions of views. In some ways, Robinhood reflects how Silicon Valley mastered the art of manufacturing behavioral loops, encouraging an app user to log back in one more time or spend one more minute engaged.

Same Bloomberg article, pick your source of choice:
https://www.bloomberg.com/news/articles/2020-12-19/robinhood-s-role-in-the-gamification-of-investing-quicktake
https://www.washingtonpost.com/business/robinhoods-role-in-the-gamification-of-investing/2020/12/19/83b310ca-41bf-11eb-b58b-1623f6267960_story.html

this thing turns systemic real quick and our portfolio's get drawn down by 50%-60%...then and only then we are going to have a problem with the Reddit/WSB approach,

This is new territory with unknown risks. Question is what can SEC do about it? They seem to be way behind the matter.

update:
https://www.sec.gov/Archives/edgar/data/915802/000139834421001868/fp0061770_497.htm
497 1 fp0061770_497.htm
FINANCIAL INVESTORS TRUST
Emerald Small Cap Value Fund
(the “Fund”)
Supplement dated January 29, 2021
to the Fund’s
Prospectus and Statement of Additional Information
dated August 31, 2020, as supplemented
As previously disclosed, on December 8, 2020, the Board of Trustees (the “Board”) of Financial Investors Trust (the “Trust”), based upon the recommendation of Emerald Mutual Fund Advisers Trust (the “Adviser”), the investment adviser to the Fund, a series of the Trust, determined to close and liquidate the Fund on or about January 11, 2021. The date for such liquidation is now expected to be on or about February 12, 2021 (the “Liquidation Date”).
If the Fund has not received your redemption request or other instruction prior to the close of business on the Liquidation Date, your shares will be redeemed, and you will receive proceeds representing your proportionate interest in the net assets of the Fund as of the Liquidation Date, subject to any required withholdings. As is the case with any redemption of fund shares, these liquidation proceeds will generally be subject to federal and, as applicable, state and local income taxes if the redeemed shares are held in a taxable account and the liquidation proceeds exceed your adjusted basis in the shares redeemed. If the redeemed shares are held in a qualified retirement account such as an IRA, the liquidation proceeds may not be subject to current income taxation under certain conditions. You should consult with your tax adviser for further information regarding the federal, state and/or local income tax consequences of this liquidation that are relevant to your specific situation.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

FSMEX = up 2.19%
Healthcare mapped here:
https://finviz.com/map.ashx
Volatility Index:
VIX up 9.53% to $33.09

What really concerns me is that this similar to the Madoff investors...hear me out...they were all "ok" with it as long as they were making money.
We were all "ok" with this "artificial", central bank driven, ponzi scheme market as long as we were making money and our portfolio grew over the past dozen years.
Now, we are ok with the Hedgie Big Shots getting hammered by the Reddit "Bro" crowd.
Just like folks kinda, maybe, shoulda, ya, sure, obvious knew Madoff was total fraud as who the heck could generate consistent returns like that over time...in hindsight...we'll say, ya, we kinda, maybe, shoulda, ya, sure the market has been total fake BS the past dozen years.
Now...the hedgies get clocked and we are ok with it but wait this thing turns systemic real quick and our portfolio's get drawn down by 50%-60%...then and only then we are going to have a problem with the Reddit/WSB approach, no?
Open your eyes! Be careful!
Best Luck and Good Health to All,
Baseball Fan

Shared a few links on short selling and an interesting presentation in this thread:
MFO Thread

A few links related to Reg SHO, Shorting, and naked shorting.
What Is Regulation SHO?

Regulation SHO is a set of rules from the Securities and Exchange Commission (SEC) implemented in 2005 that governs short sale practices. Regulation SHO established "locate" and "close-out" requirements aimed at curtailing naked short selling and other practices. Naked shorting takes place when investors sell short shares that they do not possess and have not confirmed their ability to possess

SEC Key Pints of Reg SHO:
https://sec.gov/investor/pubs/regsho.htm
Naked Short Selling:

“Naked” short selling is not necessarily a violation of the federal securities laws or the Commission’s rules. Indeed, in certain circumstances, “naked” short selling contributes to market liquidity. For example, broker-dealers that make a market in a security[4] generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks as there may be few shares available to purchase or borrow at a given time.

Is SEC Effective in Regulating Naked Shorts?
part-6-illegal-naked-shorting-the-secs-regulation-sho-is-intended-to-prevent-illegal-naked-shorting-but-is-ineffective?
Patrick Bryne's Deep Capture Blog:

In 2005, Patrick began a vigorous campaign against corruption in our capital markets through securities manipulation. His stance quickly caught the attention of Wall Street analysts and reporters and remains a point of high controversy today. The Deep Capture website grew out of this campaign.

https://deepcapture.com/2019/11/the-sec-me-metoo-part-i/
Deep Capture Presentation:

S&P 500 and NASDAQ are down 2% on Friday. Gold and bonds are doing ok. This has been a wild week.

I think this explains things pretty well:

a normal person explains what’s happening on the stock market: pic.twitter.com/zKKvULCirX

— Avalon Penrose (@avalonpenrose)

January 27, 2021

Too much time at home. But, hey, hedge funds shouldn't get to have all the fun...
Signs of a little spillover impact on ETFs but maybe not mutual funds...

The $189 million Wedbush ETFMG Video Game Tech ETF jumped more than 16.1% Wednesday, pushing it up approximately 25% since the start of the week. The $758 million SPDR S&P Retail ETF soared 12%, powering it to a 21.9% gain for the week-to-date.

https://finance.yahoo.com/news/gamestop-surge-leaves-u-based-060000570.html

https://m.youtube.com/watch?v=RYfmRTyl56w
Why Grantham Says the Next Crash Will Rival 1929, 2000
Very interesting interview from Bloomberg regarding bubble formations/disruptions and potential markwt crashes coming soon

OK, so MSSMX is human, so to speak, after all. Finally DOWN 3.18% in concert with other SCs.
Increased my stake in it today by 50%. One more BUY to go to fill out the position. Seat belts not included.

MIOPX, 3 yr and 5yr, is in a dead heat with VWIGX. I don't own any Vanguard funds in my fund supermarket account, but I assume there's a transaction fee. MS funds are no-load, NTF where I shop.

Good point. Prior owner of it.

MIOPX, 3 yr and 5yr, is in a dead heat with VWIGX. I don't own any Vanguard funds in my fund supermarket account, but I assume there's a transaction fee. MS funds are no-load, NTF where I shop.

https://www.sec.gov/Archives/edgar/data/891079/000119312521020228/d160564d497.htm
497 1 d160564d497.htm HIGHLAND FUNDS II
HIGHLAND FUNDS II
Highland Socially Responsible Equity Fund
Supplement dated January 31, 2021 to the Summary Prospectus, Prospectus and Statement
of Additional Information (“SAI”) each dated January 31, 2021, as supplemented from time to time
This Supplement provides new and additional information beyond that contained in the Summary Prospectuses, Prospectus and Statement of Additional Information and should be read in conjunction with the Summary Prospectuses, Prospectus and Statement of Additional Information.
IMPORTANT NOTICE
The following information supplements and supersedes any information to the contrary contained in the Summary Prospectus, Prospectus and/or Statement of Additional Information of Highland Socially Responsible Equity Fund, a series of Highland Funds II (the “Trust”), each dated and supplemented as noted above.
As previously disclosed, on October 28, 2020, the Board of Trustees (the “Board”) of Highland Funds I (the “HFI”) and Highland Funds II (the “HFII”) unanimously approved an Agreement and Plan of Reorganization (the “Plan”) for the reorganization of Highland Socially Responsible Fund (the “Acquired Fund”) into NexPoint Merger Arbitrage Fund (the “Acquiring Fund,” and together with the Acquired Fund, the “Funds”). Under the Plan, the Acquired Fund would be reorganized into the Acquiring Fund on or around February 26, 2021 (the “Closing Date”). Shareholders of record as of January 8, 2021, will be entitled to vote on the Plan.
At any time prior to the Reorganization, shareholders may redeem shares of the Acquired Fund. Such a redemption would likely result in the recognition of gain or loss by the shareholder for U.S. federal income tax purposes, which would be taxable to a shareholder that holds the shares in a taxable account. Additionally, Acquired Fund shareholders will not incur any sales load or similar transaction charges as part of the Reorganization. Please contact the Adviser at 1-877-665-1287 if you have questions about the Reorganization or your account.
A special meeting of shareholders during which shareholders of the Acquired Fund will be asked to consider and vote on the Plan has been scheduled to be held on February 26, 2021. If shareholders of the Acquired Fund approve the reorganization, the reorganization is expected to take effect on or about February 26, 2021.
Shareholders of record of the Acquired Fund will receive a prospectus/proxy statement that will include important information regarding the Reorganization. Those shareholders should read that prospectus/proxy statement carefully when it is available. The prospectus/proxy statement, and any other documents filed by the Funds with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov or the Funds’ Web site at www.highlandfunds.com/literature or www.nexpointgroup.com/nexpoint-merger-arbitrage-fund/. For more information regarding the Acquired or Acquiring Fund please call 1-877-665-1287 or visit the Funds’ Web site listed above.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE.
HFII-HPE-SUPP-0121

@FD1000 said:

I have several criteria but the easiest one is the VIX, when...VIX>30 get ready...VIX>35 start selling...VIX>40 rapid selling. The catch of course is not to stay out for longer term. I have been out of the market about 3% of the times in the last 10 years.

This week seems to be one of those moments to watch the VIX.
https://finance.yahoo.com/quote/%5EVIX?p=%5EVIX

https://www.sec.gov/Archives/edgar/data/1217286/000119312521020134/d53492d497.htm
497 1 d53492d497.htm JPMORGAN TRUST I
J.P. MORGAN INTERNATIONAL EQUITY FUNDS
(JFTAX)
JPMorgan International Advantage Fund
(the “Fund”)
(All Share Classes)
(a series of JPMorgan Trust I)
Supplement dated January 28, 2021
to the Summary Prospectuses, Prospectuses and Statement of Additional Information
dated March 1, 2020, as supplemented
NOTICE OF LIQUIDATION OF THE JPMORGAN INTERNATIONAL ADVANTAGE FUND. The Board of Trustees (the “Board”) of JPMorgan Trust I has approved the liquidation and dissolution of the Fund on or about February 26, 2021 (the “Liquidation Date”). Effective immediately, the Fund may depart from its stated investment objective and strategies as it increases its cash holdings in preparation for its liquidation. On the Liquidation Date (for settlement the date after the Liquidation Date), the Fund shall distribute pro rata to its shareholders of record all of the assets of the Fund in complete cancellation and redemption of all of the outstanding shares of beneficial interest, except for any proceeds from any securities that cannot be liquidated on the Liquidation Date, cash, bank deposits or cash equivalents in an estimated amount necessary to (i) discharge any unpaid liabilities and obligations of the Fund on the Fund’s books on the Liquidation Date, including, but not limited to, income dividends and capital gains distributions, if any, payable through the Liquidation Date, and (ii) pay such contingent liabilities as the officers of the Fund deem appropriate subject to ratification by the Board. Income dividends and capital gain distributions, if any, may be paid on or prior to the Liquidation Date. If you have a Fund direct IRA account, your shares will be exchanged for Morgan Shares of the JPMorgan U.S. Government Money Market Fund unless you provide alternative direction prior to the Liquidation Date. For all other IRA accounts, the proceeds will be invested based upon guidelines of the applicable Plan administrator.
Upon liquidation, shareholders may purchase any class of another J.P. Morgan Fund for which they are eligible with the proceeds of the liquidating distribution. At the time of the purchase you must inform your Financial Intermediary or the J.P. Morgan Funds that the proceeds are from the Fund.
PURCHASES OF FUND SHARES FROM NEW SHAREHOLDERS WILL NO LONGER BE ACCEPTED ON OR AFTER FEBRUARY 1, 2021.
PURCHASES OF ADDITIONAL SHARES FROM EXISTING SHAREHOLDERS WILL NO LONGER BE ACCEPTED ON OR AFTER FEBRUARY 24, 2021.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE SUMMARY
PROSPECTUSES, PROSPECTUSES AND STATEMENT OF ADDITIONAL INFORMATION
FOR FUTURE REFERENCE
SUP-IA-LIQ

https://www.sec.gov/Archives/edgar/data/1137761/000110465921008273/a21-4007_1497.htm
97 1 a21-4007_1497.htm 497
SUPPLEMENT DATED JANUARY 28, 2021
TO THE PACIFIC FUNDS PROSPECTUS DATED AUGUST 1, 2020
FOR CLASS A, CLASS C, CLASS I, CLASS R6 AND ADVISOR CLASS SHARES
This supplement revises the Pacific Funds Prospectus dated August 1, 2020 for Class A, Class C, Class I, Class R6 and Advisor Class Shares, as supplemented (the “Prospectus”), and must be preceded or accompanied by the Prospectus. This supplement applies to Pacific Funds Large-Cap Value only. Remember to review the Prospectus for other important information. Capitalized terms not defined herein are as defined in the Prospectus.
NOTICE OF LIQUIDATION OF PACIFIC FUNDSSM LARGE-CAP VALUE
On January 25, 2021, the Board of Trustees of Pacific Funds Series Trust (the “Trust”) approved a plan of liquidation (the “Plan”) for Pacific Funds Large-Cap Value (the “Fund”), a series of the Trust. The liquidation of the Fund is expected to occur on or about March 1, 2021, or such other date as any officer of the Trust shall determine (the “Liquidation Date”). The Liquidation Date may be accelerated if all shareholders of the Fund have redeemed their shares prior to that date.
In order to convert all portfolio securities of the Fund to cash or cash equivalents in preparation for the liquidation, the Fund is expected to deviate from its investment goal and investment strategies until it is liquidated on the Liquidation Date. For example, short-term money market or other instruments may be held by the Fund in anticipation of its liquidation and these investments will not perform in the same manner as investments held by the Fund under normal circumstances.
No new shareholders into the Fund were accepted after December 1, 2020. Investments from existing shareholders of the Fund will no longer be accepted after February 5, 2021. Shareholders holding shares subject to a contingent deferred sales charge (“CDSC”) as of February 5, 2021 will not incur a CDSC on any redemptions on or after February 5, 2021, nor on any amounts distributed on the Liquidation Date. Shareholders may exchange shares of the Fund for another Fund of the Trust at any time prior to the Liquidation Date pursuant to the exchange provisions described in the Prospectus.
Plan of Liquidation. Pursuant to the Plan, on the Liquidation Date the Fund will distribute to its shareholders of record, as of the close of business on the Liquidation Date, all of the remaining assets of the Fund in complete cancellation and redemption of all of the outstanding shares of the Fund, except for cash, bank deposits or cash equivalents in an estimated amount necessary to (i) discharge any unpaid liabilities and obligations of the Fund on the Fund’s book on the Liquidation Date, including, but not limited to, income, dividends, and capital gains distributions, if any, payable through the Liquidation Date, and (ii) pay such contingent liabilities as the Board shall reasonably deem to exist against the assets of the Fund on the Fund’s book.
Disclosure Changes. All references to and related to the Fund in the Trust’s registration statement (including the Prospectus and Statement of Additional Information) will be deleted effective upon the Liquidation Date. No further notification regarding the liquidation of this Fund will be provided, unless circumstances change from those described above.
SUPPLEMENT DATED JANUARY 28, 2021
TO THE PACIFIC FUNDS PROSPECTUS DATED AUGUST 1, 2020
FOR CLASS P SHARES
This supplement revises the Pacific Funds Prospectus dated August 1, 2020 for Class P Shares, as supplemented (the “Prospectus”), and must be preceded or accompanied by the Prospectus. This supplement applies to Pacific Funds Large-Cap Value only. Remember to review the Prospectus for other important information. Capitalized terms not defined herein are as defined in the Prospectus.
NOTICE OF LIQUIDATION OF PACIFIC FUNDSSM LARGE-CAP VALUE
On January 25, 2021, the Board of Trustees of Pacific Funds Series Trust (the “Trust”) approved a plan of liquidation (the “Plan”) for Pacific Funds Large-Cap Value (the “Fund”), a series of the Trust. The liquidation of the Fund is expected to occur on or about March 1, 2021, or such other date as any officer of the Trust shall determine (the “Liquidation Date”).
In order to convert all portfolio securities of the Fund to cash or cash equivalents in preparation for the liquidation, the Fund is expected to deviate from its investment goal and investment strategies until it is liquidated on the Liquidation Date. For example, short-term money market or other instruments may be held by the Fund in anticipation of its liquidation and these investments will not perform in the same manner as investments held by the Fund under normal circumstances.
Plan of Liquidation. Pursuant to the Plan, on the Liquidation Date the Fund will distribute to its shareholders of record, as of the close of business on the Liquidation Date, all of the remaining assets of the Fund in complete cancellation and redemption of all of the outstanding shares of the Fund, except for cash, bank deposits or cash equivalents in an estimated amount necessary to (i) discharge any unpaid liabilities and obligations of the Fund on the Fund’s book on the Liquidation Date, including, but not limited to, income, dividends, and capital gains distributions, if any, payable through the Liquidation Date, and (ii) pay such contingent liabilities as the Board shall reasonably deem to exist against the assets of the Fund on the Fund’s book.
Disclosure Changes. All references to and related to the Fund in the Trust’s registration statement (including the Prospectus and Statement of Additional Information) will be deleted effective upon the Liquidation Date. No further notification regarding the liquidation of this Fund will be provided, unless circumstances change from those described above.

...Just noticed that the 3.5% offering from Navy which was there for so long is down to 3%. And the AMOUNT you can invest at that rate is severely limited, as was pointed out on an older thread here. Seems to me you'd have to have EVERY other conceivable base covered, in order to decide to put money there.

Picked up this link on *The Big Picture* more of the same
“ Bronte’s strategy has not changed. But we act with extra caution: keeping positions small, watching our hedges carefully, and increasing our willingness to “duck and cover” when danger lurks. Meanwhile we are honing our list of garbage SPACs and other dross sold to retail. It is a target rich environment. One day—when the targets are not shooting back with such vehemence—we will short more aggressively. Till then we just wish to keep the book under control.
You, dear clients, however have a choice to make – and we will understand if you make it. Our recent results are not good; but we believe our future will be better, for this period too will end. However, perhaps you possibly know a young manager who has earned well over 100 percent this year. You might want to take your money there. It pains us to say this – but given our results we will understand if you do.
And maybe it will work. But it comes with a warning. Of the tens of millions of people who have come to the market in the past year or so and are up big, some will be great – but most will be this cycle’s go-go victims. For them 80-95 percent losses beckon.
Be careful out there. And stay rational. We will be.
The Bronte Team”