TL;DR

The r/wallstreetbets meme-stock frenzy of July 2025 saw coordinated online hype—bots and posts—artificially inflating prices before a devastating crash. Countless people, lured by the promise of easy money, suffered severe financial losses, proving that old scams never die, just change their clothes.

Story

John, a retail investor, saw a post on r/wallstreetbets on July 23, 2025. The post hyped OpenDoor ($OPEN) and other meme stocks like Krispy Kreme ($DNUT) and Rocket Companies ($RKT). It was a classic pump-and-dump scheme, dressed up in internet slang and hype. Pump-and-dump schemes aren’t new—they’re the same old grift in a new digital suit. Think Enron, but with internet memes instead of fake energy deals.

The mechanics were simple, but effective. Coordinated posts flooded social media, creating artificial hype. Bots joined in, mimicking organic enthusiasm. ‣ Pump and dump: A scheme where promoters artificially inflate (pump) the price of a stock to sell (dump) it at a high price. Naive investors, like John, jumped in, hoping for a quick buck. ‣ Bots: Automated social media accounts used to spread misinformation and create the illusion of widespread interest. This is reminiscent of the 2008 financial crisis, where manufactured demand—in that case for subprime mortgages—created a bubble set to burst.

John, swept up in the frenzy, invested his savings. Overnight, the price of $OPEN soared, then just as quickly crashed. Stories emerged of others, like Sarah who lost her college fund, and Mark, who even took out a loan to follow the hype. The human impact was devastating. The scheme left countless people financially broken.

The lessons are brutal but crucial. Red flags abound in these schemes. First, be wary of coordinated online hype. It’s an easy trick. Second, only trust verified information. Don’t trust the internet. Third, never invest money you can’t afford to lose. This is not just about money; it’s about keeping your life in order. Finally, remember that every get-rich-quick scheme hides a get-poor-quick truth. This is as true now as it was in 1929. The cycle always repeats.

In the end, John’s dream turned into a nightmare. He learned a harsh lesson: greed, amplified by the anonymity of the internet, creates fertile ground for schemes that target the naive and desperate.

Advice

Ignore get-rich-quick schemes online. They’re rarely quick, and almost always lead to impoverishment. Diversify your investments, never invest borrowed money, and always do your own, thorough research before investing.

Source

https://www.reddit.com/r/wallstreetbets/comments/1m6odtj/what_are_your_moves_tomorrow_july_23_2025/