Fabio Pacucci and Abraham Loeb claim that the most common little red dots, found at redshift z = 5, are explained as galaxies formed in the lowest ∼1% of the halo spin distribution. This naturally reproduces both their observed abundance (∼1% of standard galaxies) and their compact sizes (effective radius < 300 parsecs).

They aren't making any claims about the precise structure of little red dots. They may be black holes, they may not, etc.

They claim this theory fits some of the statistics of little red dots.

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https://iopscience.iop.org/article/10.3847/2041-8213/ade871

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