The Securities and Exchange Board of India (SEBI), India's market regulator, has taken decisive action against this major U.S.-based quantitative trading firm, accusing it of manipulating key stock indices through sophisticated high-frequency trading (HFT) strategies. This unprecedented crackdown not only highlights the complexities of modern financial markets but also raises critical questions about regulatory oversight, market fairness, and the impact on retail investors.

Foreign investors pulled a net $37 billion out of U.S. equities in May 2025, marking the largest monthly withdrawal in a year. What’s driving this exodus, how does it compare to historical trends, and what could it mean for markets and everyday investors?