Re: Korean trader loses life savings on Beyond Meat (BYND)

2
ChuChu Rocket wrote: Thu Oct 30, 2025 3:34 pm This guy went all in and bought $55,000 worth of shares at $7 per share, right at the top. Now he's only option is to "go viral"

Beyond Meat chart BYND.png

If it reaches $10 per share, he'll treat us to a live burger tasting video
Beyond Meat life savings.png
Looks like a classic "pump and dump" by those in the know.

"The company went public in 2019 with a blockbuster IPO, peaking at a $14 billion valuation amid hype for sustainable foods. However, it has faced steep challenges: revenue has declined annually since 2022 (trailing 12-month revenue was $301 million as of June 2025), with no annual profits to date. In 2025, Beyond Meat suspended operations in China, announced multiple layoffs (including 44 jobs or 6% of its workforce in August), and managed a $1.15 billion debt load through a convertible notes exchange that diluted shareholders by issuing up to 326 million new shares. Q3 2025 preliminary revenue came in at ~$70 million (slightly above estimates), but the China exit and a non-cash impairment charge pressured gross margins. The stock, trading at ~$0.52 in mid-October 2025, surged over 500% in late October due to a short squeeze and meme stock frenzy, but has since stabilised around $1.80–$2.00, down 97% from its all-time high.
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Re: Korean trader loses life savings on Beyond Meat (BYND)

3
### What is a Pump and Dump?

A **pump and dump** is a form of **market manipulation** and **fraud** that occurs in both **forex** and **stock trading** (and other markets like crypto). It involves artificially inflating ("pumping") the price of an asset through false or misleading information, then selling ("dumping") it at the peak for profit, leaving other investors with losses.

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### How It Works (Step-by-Step)

1. **Target Selection**
Fraudsters pick a **low-liquidity asset** (e.g., a penny stock, obscure forex pair, or micro-cap crypto) that’s easy to move with small volume.

2. **The Pump**
They spread **hype** via:
- Fake news or press releases
- Social media (Twitter/X, Reddit, Telegram groups)
- Paid promoters or "influencers"
- Spam emails or newsletters
Example: *"XYZ stock is about to explode due to a secret merger!"*

3. **Price Inflation**
As gullible investors buy in (FOMO), the price rises rapidly. The manipulators may **buy early** to help trigger the rise.

4. **The Dump**
Once the price peaks, the scammers **sell their holdings** at the inflated price.
→ Supply floods the market → Price **crashes**.

5. **Victims Left Holding the Bag**
Late buyers lose most or all of their investment.

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### Example in Stocks
- **Penny Stock Scam**: A group buys 1 million shares of a $0.10 stock.
- They spam forums: *"Big pharma deal incoming!"*
- Price jumps to $2.00 as retail buys in.
- Scammers sell → price falls to $0.05.
- **Result**: Scammers profit $1.99/share; victims lose 95%+.

---

### Example in Forex
- **Obscure Currency Pair** (e.g., USD/TRY or exotic crosses):
Manipulators spread rumors: *"Central bank intervention imminent!"*
They use leveraged accounts to push price with coordinated buying.
Retail traders pile in → pair spikes.
Scammers close positions → pair reverts.
→ **High leverage = massive losses** for victims.

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### Why It’s Illegal
- **Securities Fraud** (in stocks): Violates SEC rules (US), FCA (UK), etc.
- **Market Manipulation**: Banned under laws like the U.S. Securities Exchange Act.
- **False Statements**: Misleading investors is fraud.

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### Red Flags of a Pump and Dump
| Warning Sign | Description |
|--------------|-----------|
| Sudden volume spike | Thinly traded asset suddenly sees huge trading |
| Unsolicited tips | "Hot tip" from unknown sources |
| No real news | Hype without verifiable fundamentals |
| Promoter disclaimers | "I may sell at any time" buried in fine print |
| Price disconnect | Price soars but company/news doesn’t justify it |
These users thanked the author BeatlemaniaSA for the post:
Krunal Gajjar
Millionaire Maker - “Amateurs chase. Professionals wait. Legends wait with a plan.”

BEATS V5 - "Enjoy The Quiet Between Trades”
Improve Your Trading Psychology - No fear, no doubt
Ultimate Risk Management - Maximize Your Trades
Supply and Demand Course - Learn Supply and Demand