In 2018, a cornered fraudster named Morrie Tobin, facing prison over a $165 million offshore stock manipulation scheme, gave federal agents a tip about a Yale soccer coach. That tip exposed the Varsity Blues admissions scandal. Tobin’s own trade was older and simpler: the pump and dump. Buy a thinly traded asset where reliable information is scarce, flood the market with fabricated hype, and sell into the rush you created. Unlike a Ponzi scheme, which needs years of steady illusion, a pump and dump feeds on volatility and can be over in hours.

This episode tracks the scheme through each change in technology. Stratton Oakmont needed offices, phone banks, and armies of brokers. A 15-year-old named Jonathan Lebed needed only Yahoo Finance message boards. Later came image-only spam, hijacked brokerage accounts, influencers using followers as exit liquidity, and coordinated strikes on meme tokens. It also covers the reverse play, short and distort, and the regulators who have tried to keep up.

• Enron is presented as the institutional version: 29 top executives sold over a billion dollars in stock before bankruptcy, while posters on Yahoo boards had been predicting the collapse.
• At its peak, stock touting made up roughly 15 percent of global spam. Senders averaged about 4.29 percent per campaign, while victims lost an average of 5.5 percent within 48 hours.
• In a hack pump and dump, criminals use stolen credentials to make innocent accounts buy a microcap stock, tripping momentum algorithms that push the price higher.
• Georgia’s penny stock law, championed by Max Cleland and Chesley V. Morton, the only licensed stockbroker in its General Assembly, became a model for national rules.
• Langbar International reached a valuation above one billion dollars on London’s AIM market on the strength of Brazilian bank deposits that did not exist, costing investors nearly 100 million pounds.