74 Am. U. L. Rev. 1155 (2025).

Abstract

As DJT shares skyrocket by thirty percent following the assassination attempt on now President Donald Trump, the financial world stands as a testament to how meme stocks and social media-driven speculation can create seismic market shifts, often blurring the lines between organic market activity and coordinated, systematic manipulation. In an era where memes dictate market movements and social media influencers wield unprecedented power, the fusion of meme stocks, SPACs, and cryptocurrency speculation has transformed financial markets into volatile arenas. This Article delves into the electrifying world of speculative trading, where viral online campaigns and cutting-edge technologies create seismic shifts in market dynamics. By exposing how these phenomena stoke the “madness of crowds,” destabilize financial fundamentals, and erode trust in regulatory frameworks, this Article scrutinizes current and innovative regulatory strategies. It unveils a roadmap for empowering governmental agencies like the Securities and Exchange Commission and the Commodity Futures Trading Commission and self-regulatory organizations like the Financial Industry Regulatory Authority to tackle this modern-day financial Wild West, advocating for heightened vigilance and robust enforcement to protect market integrity and democratic trust in this thrilling new frontier of finance.

* Professor Emeritus, Colleges of Information Sciences & Technology and Smeal College of Business, Pennsylvania State University.
** Professor of Law, Zicklin School of Business, Baruch College, City University of New York. Faculty of Law, University of Haifa. ECGI Academic Member. Affiliated Researcher, European Banking Institute. Affiliated Researcher, University of Milan—Information Society Law Center.