TL;DR

A coordinated scheme targeting $UNH put options left investors with devastating losses and serves as a stark reminder of the dangers of market manipulation and the need for caution. The irony? The perpetrator’s callous taunts highlight the cold indifference of those exploiting loopholes.

Story

Another day, another rug pull. This time, it wasn’t some anonymous crypto project; it was a seemingly legitimate stock, $UNH, manipulated by a coordinated effort to profit off unsuspecting put option buyers. Warren, the alleged mastermind, taunted his victims after their losses, a chilling reminder of the ruthlessness in financial markets. How did it happen? It’s simple, really, just sophisticated enough to lure in less experienced investors. A coordinated campaign likely involved spreading false, negative information about $UNH, driving the price down. Those who had bought put options, ‣ Put Option: A contract giving the buyer the right, but not the obligation, to sell an asset at a certain price on or before a certain date., betting on the price falling, were initially thrilled. Then, like a house of cards, the price surged unexpectedly. Warren and his collaborators likely had already purchased shares or call options (the opposite of a put option), ‣ Call Option: A contract giving the buyer the right, but not the obligation, to buy an asset at a certain price on or before a certain date., making a profit from the price increase while putting option buyers faced massive losses. This isn’t new; it echoes the manipulative tactics of the 2008 financial crisis and Enron’s accounting scandals. Victims likely lost significant portions of their investments, retirement funds possibly wiped out, shattering dreams and trust in the system. The human cost is rarely measured, but this sort of coordinated market manipulation can ruin lives. The lesson? Never underestimate the lengths some will go for profit, and diversify investments to avoid relying on a single bet. Don’t believe hype; verify information through multiple independent sources. Remember, if something sounds too good to be true, it probably is. Always approach markets with skepticism, as the history of financial crises demonstrates that unchecked greed and manipulation eventually lead to widespread pain.

Advice

Diversify, research, and approach all financial opportunities with extreme skepticism. Remember that the market is not your friend.

Source

https://www.reddit.com/r/wallstreetbets/comments/1mqmfz2/warren_called_he_said_fuck_your_unh_puts/