That is my opinion too. It will happen eventually because of the numbers and the logic. It just depends on how many times the initial underwriters keep pumping money into FB to prop the stock up. However there may be another interesting angle to this case study. Consider that even if the underwriters lose money eventually when this stock ultimately fails, the average consumer (eg saver) partnered with those institutions and FB investors will lose. If on the other hand, the underwriters refuse to do anything to prop the stock up the investor who purchased a falling paper asset will lose. The ones on top will make sure their pockets are filled before the companies claim bankruptcy.