Of all the companies to level this accusation at... Facebook has more money than these funds. The biggest bank in the country, JPMorgan, is worth $400B (remember that total assets is not the same thing as net worth); Facebook is worth >$500B. Nobody outsmarted Facebook here. The scale that these funds are operating at is peanuts compared to Facebook's operations.
Outsmarted the group that happened to be hosted by Facebook. Facebook will always act in Facebook's interests, the hedge funds pointing at trolls and yelling (trolls they themselves seeded?). Makes Facebook's interests align with the hedge funds and run counter to this particular group. Group is shutdown. Hedge funds outsmarted the group who had outsmarted them. It's a blip on Facebook's horizon at best other than balancing PR concerns. Will people hold it against Facebook or can you spin it as justified by "hate"? The hedge funds, their investors and political connections will hold it against Facebook should Facebook take the other side. Facebook will currently be concerned about a new approach to regulation with the dems now in power. Facing down that monopoly regulation to make it toothless will be Facebook's number 1 concern right now unless they've already got it locked up, which is more than possible.
Are we ok with this? We talk about endemic corruption like it's the most normal thing in the world. But it isn't. Reform or perish.
Why don’t total assets matter here? JP Morgan has 3 trillion under management. Also the valuation of FB is based on it being a going concern whose business has very little to do with manipulation of financial markets.
