“INSIDER TRADING IN THE AGE OF SOCIAL MEDIA: A LEGAL AND ETHICAL ANALYSIS OF THE WHATSAPP LEAK AND GAMESTOP CASES”

AUTHOR – SRISHTI MITTAL, STUDENT AT AMITY UNIVERSITY NOIDA

BEST CITATION – SRISHTI MITTAL, “INSIDER TRADING IN THE AGE OF SOCIAL MEDIA: A LEGAL AND ETHICAL ANALYSIS OF THE WHATSAPP LEAK AND GAMESTOP CASES”, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (6) OF 2025, PG. 249-262, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

In the digital age, social media has emerged as a powerful force influencing financial markets, challenging traditional definitions and enforcement of insider trading laws. This paper critically examines the intersection of social media and insider trading through the lens of two high-profile cases: the WhatsApp Leak case in India and the GameStop short squeeze in the United States. By analysing the legal frameworks governing insider trading in both jurisdictions, the study explores how platforms like WhatsApp and Reddit have been used to disseminate market-sensitive information or mobilize retail investors, often resulting in dramatic price movements and regulatory scrutiny. The research further delves into the evidentiary challenges posed by encrypted digital communication, the ethical implications of viral misinformation, and the constitutional dilemmas surrounding privacy and freedom of expression. Through a comparative legal analysis, this paper identifies regulatory gaps and enforcement limitations in the current system and proposes policy recommendations to address the evolving nature of financial misconduct in the social media era. Ultimately, the paper argues for a nuanced and technologically informed legal response that balances innovation with market integrity and investor protection.