Here’s The Inside Story Of What Happened On The Facebook IPO:

The estimate cut, moreover, was followed by three additional pieces of information that were interpreted negatively by some institutional investors:
1) The price range for the deal was increased, which made the deal even less attractive in light of the estimate cut,
2) The size of the deal was increased, which meant that more stock would be sold, and
3) Many smart institutional Facebook shareholders like Goldman Sachs decided to sell more stock on the deal—the “smart money,” in other words, was cashing out.

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In the meantime, it’s hard to conclude anything other than this:
In one of the biggest IPOs in history, in which a huge amount of stock was sold to small investors, privileged Wall Street insiders once again got top-notch information…and individuals got the shaft.