Photo by Chris Liverani / Unsplash Recently, I received a telegram message about someone losing USD40,000 in a pump-and-dump stock scam. He was not the only victim. I opened up the daily price chart of 2195.HK (Unity Enterprise) to study this pump-and-dump scam in action. Daily price chart of 2195.HK (Unity Enterprise). Source: moomoo app The pump in 2195.HK started around the middle of March 2022 at the price of HKD0.30. The stock was then pumped up to a gain of 423% in the next 6 months. As the price runs up, it gets easier to make victims believe false good news about the company and induce them to join in the pump. Victims will make money initially, then they put in more money, further pumping up the price. On the fateful day(29 Sep 2022) of the dump, the stock hit an intra-day high of HKD1.26, then crashed to close down at HKD0.25 at extremely high volume. It crashed by 78.63% within a...