TLG - Media, page-5484

1,000,000 SOI.
5% held by a big player (50,000)
50% (500,000) held by small retail holders (say 10k each with 50 shares).

Let's say it's trading at $41.50, and 10% of retail holders have a stop-loss set up to automatically sell of the price drops below $40.

daily average trading volume is ~1% of SOI ( 10,000)

The big fish has access to more than enough shares to manipulate the price. They sell 10,000 shares, easily enough to drive the price down from $41.50 to under 40.

suddenly 50,000 shares get dumped to be sold at whatever price the market will take them at. This drops in the price even further down to say 38. The big fish re-buys their 10k easily, some on the way down some on the way up. Sold avg 40.75, bought back avg 38.50.


this doesn't always play out with brute force triggering stop-losses. Can be much more subtle - selling just enough to nudge the price down and gradually change sentiment (at least sentiment of people closely following the price). Using bots helps them keep juuust enough orders in play tri nudge the price without committing too much. While sentiment is low, they gradually buy up.