- Palantir CEO Alex Karp accuses illegal short selling and market manipulation targeting PLTR, igniting furious debate.
- Retail investors rally behind Karp while skeptics cite his stock sales and Palantir’s sky-high valuation.
- Social media frenzy pressures regulators as investors split between demanding probes and viewing PLTR as a risky bargain.
Palantir Technologies’ CEO Alex Karp has thrown a Molotov cocktail into the financial markets with his bold accusation of illegal short selling targeting PLTR stock, and investors are reacting with a whirlwind of emotions.
As of Monday, November 24, 2025, the X post from Frank Nez (@FNez_Blogger) announcing Karp’s claim has become a battleground for retail traders, hedge fund skeptics, and meme stock enthusiasts.
With Palantir’s stock down 25% from its November high, the sentiment on X reveals a community torn between outrage, skepticism, and cautious hope—offering a raw pulse of how this news is reshaping investor perspectives.
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The Spark: Karp’s Explosive Allegation
The controversy erupted earlier this month when Karp appeared on CNBC’s Squawk Box to counter a massive bearish bet by hedge fund icon Michael Burry, who allocated 66% of his $1.4 billion portfolio to put options against PLTR, as revealed in a recent Form 13F filing.
Karp didn’t mince words.
“Honestly, I think what is going on here is market manipulation,” he declared, later adding, “I’m sorry short sellers can’t tell the difference between products that work and products that don’t,” while dismissing Burry’s move as “bat s*** crazy.”
His defense of Palantir, a company that has surged 1,800% since launching its AI platform in April 2023, has polarized the investment world.
The backdrop is tense. Palantir’s valuation, trading at one of the highest price-to-sales multiples in the S&P 500, has drawn scrutiny, especially after the stock’s recent tumble.
Karp’s claim of illegal short selling—potentially involving naked shorts or obscured trades like equity swaps—taps into long-standing frustrations among retail investors who feel Wall Street plays by different rules.
Investor Sentiment: A Rollercoaster of Reactions
The X thread sparked by Frank Nez’s post on November 23, 2025, is a microcosm of the market’s divided soul.
Retail investors, particularly those burned by past market manipulations, are rallying behind Karp.
Jim (@shilldestoyer2) captured the mood with enthusiasm: “Well well well, now everyone is waking up to the blatant fraud!!!” Similarly, Pesadilla (@ghostin58) predicted a domino effect, writing, “And that’s how this bull shit blows up. Bigger companies are going to start coming out on this.”
The mention of #MMTLP, a stock tied to unresolved fraud allegations, by users like RocketShip (@aperocketship) with “Punish shorts #AMC #GME #MMTLP,” signals a growing coalition of retail traders ready to fight back.
Outrage extends to calls for accountability. Rob (@LotusRob99) unleashed a lengthy tirade, asking, “WHERE IS #Congress? & the @FBI and @TheJusticeDept? Does the FBI condone some types of crime as long as politically connected Wallstreet White guys are committing the fraud?”
His post, echoing the frustrations of 65,000 affected #MMTLP investors, reflects a deep distrust in regulators like the SEC and DOJ.
Yet, not all reactions are supportive. Skeptics are quick to point out contradictions.
Flyonthewall777 (@RichardHeartWet) raised eyebrows with, “He sold like a billion in stock last week lmao,” highlighting Karp’s recent stock sales that some see as undermining his stance.
This has fueled a counter-narrative that Karp might be deflecting from Palantir’s lofty valuation, which even a 66% drop wouldn’t bring in line with peers.
Amid the noise, a few investors see opportunity.
SuccessOnly (@SuccessOnly888) urged action with “Punish shorts,” while Shane (@TheRealShane_Ho) posted a meme with “WELCOME TO THE PARTY, PAL,” suggesting the market’s chaos could benefit bold players.
What Fuels the Fire?
Supporting images in the thread add fuel to the debate. One shows a FINRA fine of $1 million against Jefferies for reserve account violations from 2009 to 2022, hinting at historical misconduct.
Another references All Blue Investments’ $126 million loss from “improper naked short trades,” tying Karp’s claims to real-world precedents.
A third image explains how equity swaps and basket trades can obscure short positions, a tactic some investors believe is at play with PLTR.
These examples resonate with a community that feels short sellers exploit loopholes.
Mr. B (@BeamBillion) summed it up starkly: “Every Stock is illegally shorted. There is almost triple the floats then stated, The DTCC should be shut down.”
The accompanying image of “1063 DAYS OF EXCUSES” for #MMTLP underscores a years-long battle for justice that many now see mirrored in Palantir’s plight.
Where Do Investors Go From Here?
The split sentiment leaves investors at a crossroads.
For some, Karp’s allegations validate their suspicions of a rigged market, galvanizing a push for regulatory action.
Others view it as a distraction from Palantir’s fundamentals, with Burry’s bet seen as a prudent check on AI hype. The stock’s 25% drop has turned it into a potential bargain or a value trap, depending on who you ask.
As the day progresses, eyes are on the SEC under Paul Atkins and the Trump administration.
Will they investigate? The X chatter suggests retail investors won’t let this fade quietly.
For now, the Palantir saga is a rallying cry and a warning—proof that in 2025’s market, the line between manipulation and momentum is thinner than ever.
Also Read: Short Sellers Are Now Throwing One Another Under the Bus
