Classic sucker play.<p>Smart Dude knows something, has some experience, moves into something 'related' where he thinks he knows what's going on, ignoring all classic signs of a scam.<p>Then, when his money is well and truly sunk, he tries to figure out where it went. At least that part is new.
tl:dr; guy invests 100k, a reverse stock split happens which locks up his shares, stock gets pumped then dumped while he watches helplessly. Find out more in part 2 (which doesn't exist).
"He had previously worked on Wall Street as an institutional equity trader and research analyst for a subsidiary of the now-defunct investment bank Donaldson, Lufkin, and Jenrette.<p>"But DiIorio didn’t know that at the time.""<p>How does someone who worked on Wall St. not know what penny stocks are? How do they not know the importance of disclosure and regulation?<p>It's just bizarre for someone to come out of that world without the proper cynicism for investing, but maybe that's because the people I have met from Wall St. make money. Some of them "quite a bit."<p>I wonder if he worked for one of those institutions that doesn't actually make money and instead lives off of fees.
I flagged this article (is that an abuse of that flag system?). Part 2 is now up but is woefully thin on useful detail; we learn nothing about who at UBS or Knight might be manipulating the market or why.
The "To be continued..." format was not a great choice for narrative like this. So much content missing that it could be considered click-bait.
so, i bookmarked, and more parts are showing up.<p>2 - <a href="https://theintercept.com/2016/09/23/big-players-little-stocks-and-naked-shorts/" rel="nofollow">https://theintercept.com/2016/09/23/big-players-little-stock...</a><p>3 - <a href="https://theintercept.com/2016/09/24/naked-shorts-cant-stay-naked-forever/" rel="nofollow">https://theintercept.com/2016/09/24/naked-shorts-cant-stay-n...</a><p>4 - <a href="https://theintercept.com/2016/09/25/calling-the-sec/" rel="nofollow">https://theintercept.com/2016/09/25/calling-the-sec/</a>