Yeah, you, and the people downvoting me, don't really understand what I'm saying.
Imagine I start a company and I get my friends to buy up the shares of it on the stock market. Now imagine the market cap is $10m the day before it joins the Russell 5000. The next day a seperate company goes bankrupt and my company is now 1/100000 of the Russell 5000, which means that ETFs that track that index are now buying roughly 20% of my stock, which raises the price to $15m. Next my friends can slowly sell out for the amount that they pumped, but they will never trigger a mass sell off, because I always had a controlling stake from the beginning.
Imagine I start a company and I get my friends to buy up the shares of it on the stock market. Now imagine the market cap is $10m the day before it joins the Russell 5000. The next day a seperate company goes bankrupt and my company is now 1/100000 of the Russell 5000, which means that ETFs that track that index are now buying roughly 20% of my stock, which raises the price to $15m. Next my friends can slowly sell out for the amount that they pumped, but they will never trigger a mass sell off, because I always had a controlling stake from the beginning.