Question: who got punished for the VW short squeeze? That was illegal too, right?
The thing is, I think I know what you’re trying to say, but you’re not explaining it well enough, and are spreading (at best) misinformation.
A short squeeze isn’t illegal.
Organising a coordinated one might be.
It's also worth nothing that this happened in Germany so not subject to SEC regulations AND very importantly, Porsche actually ended up on the losing end of the deal and getting screwed. They tried to get a Bail out from the Saudi's but German govt. Wouldn't allow it.
In the US, buying stocks with the intention of creating a short squeeze and then reselling the stock is expressively illegal by SEC regulations, it's why you see the phrase "WE like the stock" so much.
No it's not