It is simply silly to decry "citizen journalism" because one "citizen journalist" got the story wrong, intentionally or otherwise. Actually, the term "citizen journalism" is silly. It is a way for big media to differentiate themselves from the "citizens".

People say things on the street. People say things in their home, at work, on the train, and in email, Twitter and on their blogs. This is all information. The fact that it continues to be necessary to think about what you hear and run it through filters is no different for any information source.

I certainly would never take a CNN, or Fox or MSNBC news story as gospel. Would you?

"Decrying" the blogosphere is like decrying the internet. Whatever, get over it. The news media is never completely right, even when they are mostly right. By their nature, they spin, all of them. Blogs are what they are. Talk. Commentary. Modern conversation. In other words, you are correct. On the other hand attempting to manipulate the markets and enhance the value of your short sales is a crime and there is nothing wrong with investigating criminal activity.