Jordan on Nostr: Because that would mean a stock that needs to be propped up, or bailed out has weak ...

Because that would mean a stock that needs to be propped up, or bailed out has weak fundamentals, and cannot grow on its own.

Thus signaling to people that stock is unprofitable thus not worth investing into, and additionally to exit, and absorb that liquidity before anyone else could causing a downward spiral of selling, this accelerated selling would accelerate more selling especially with algorithms which amplify market action.

I am sure there might be but I am not currently aware of any specific examples.