But remember, unless fools rush in afterwards with even more zeal than the original group, the original group will be the ones who lose money, as the stock would tend to settle back down afterwards, all other things being equal. The situation which happens more often, and is more serious, is for people to buy up a stock, and then make false statements about the prospects of the company or stock, soliciting others to buy it. While this is immoral, it would probably not be illegal if these people were just private individuals exaggerating the quality of a stock. That's why one should take free investment advice with a grain of salt, and carefully judge its source and quality. Neither of these situations pose a threat to capitalism.
All business is subject to risks, and all business requires one to use good judgment.
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