GameStop short selling and Reddit

[Golden Ellipse]

Originally Posted by SPMN

If anyone's not fully aware what happened, in December '19, a user named DeepEffingValue (It isn't really effing...) put his entire life savings of $50K into Gamestop, a failing video game retailer, with a target of January '21, expecting a bump in the stock when new video game systems are released. He posted regular updates, way down at first, and everyone made fun of him. Towards the end of last year, the price increased a little as he predicted, and people started piling on. They were having a merry time pushing the price from $5 to $20, and then big funds started to short. The most prominent, Melvin Capital, was also openly mocking the subreddit. This galvanized them, they turned it into class warfare, and started posting screenshots of large purchases with big leverage and telling each other to hold with diamond hands. It became a runaway train, squeezing the shorts, and the price hit $377 today. There are rumors Melvin Capital is bankrupt.

DeepEffingValue was worth $47 Million at the close of trading today.

Too funny.

"It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat." - Teddy Roosevelt

[enjoythemusic]

IMHO this is really easy.

How can a stock be short over 100% of their... so we're calling BS on their system. Elon Mush is very aware of what's going on and knows how to deal with short-shorts, and let's hope he's one of the angels buying strong / holding.

GME AMC etc :)

[330ci]

Well multiple online trading companies halted trading on GME,NOK, and AMC. That was fast, bummer I couldn’t get in quick enough

[Deepseadoug]

I remember the thread on Reddit gaining some heat around the 12th of this month when they were piss pants laughing at the stock being at 20$. Grabbed my attention n then I think I looked and it dipped to like 17 bucks and I said to myself the party’s over for the moms basement stock brokers of Reddit n just forgot about it. Come Yesterday it’s all over my local news and national news and GameStop is 350$ a share 16 days later. Call Leo, ink the deal for the Sequel, the wolf is back at it again.

[enjoythemusic]

Proof there's no fair market for normal traders (versus big hedgies).

Question: How can a system allow 140% of a company's stock to be shorted?

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PS: If you're CNBC, remember to pump up AAPL. Ask Jim Cramer about his stock manipulation to move AAPL in the direction he wants... and as Jim advises, hold Bear Sterns LOL!

PPS: Yes i informed the SEC about Jim Cramer's AAPL stock manipulation and sent them a link to the video as proof. The SEC did nothing as best i can tell.

[JasoninDenver]

Chamath’s interview on CNBC is must watch tv. He made the point that this is nothing more than the tables being turned on the hedge fund managers for decades. Instead of billionaire Ackman sticking it to billionaire Icahn, its the little guy sticking it to Wall Street. Chamath really hit home that the main driver is the sense of systemic inequity that the millenial era generation feels towards the current financial powers that be. Where their parents may have lost their house and assets during the 2008 crash, the big banks and hedge funds got bailouts. This is nothing more than sticking it to the man. I approve.

[enjoythemusic]

Originally Posted by JasoninDenver

...Where their parents may have lost their house and assets during the 2008 crash, the big banks and hedge funds got bailouts. This is nothing more than sticking it to the man. I approve.

Question: How many bankers who did major illegal activities, and did major damage to consumers and home owners during the MBS debacle, went to jail?


As you said, Chamath’s interview on CNBC is must watch tv

[AgentRob]

Webull still allows you to buy GME

[Blansky]

https://www.nytimes.com/2021/01/27/b...reet-bets.html

[330ci]

Originally Posted by AgentRob

Webull still allows you to buy GME

Now that trade stops are up at most of the other major firms, I imagine people are going to let things settle a bit until trades open back up again

[golftime]

Perfect example of "turnabout is fair play." I believe it speaks more to the anger the Gen X'ers feel about class disparity and in particular how the hedge funds have gamed the system, so in some ways it is enjoyable to see the tables turned. I saw the one hedge fund manager whose fund is in trouble had just purchased a property in Florida for $44 million. Hard to feel sorry for someone with so much excess.

The problem is that once these stocks return to their real value, and they will at some point, the sell off will be quick and ugly, and the people who came late to the party will lose big. Let's hope they were not leveraged up to their necks.

[SPMN]

I find it amazing that they're cutting off the ability of retail investors to buy GME and others today. To cry about market manipulation and then nakedly manipulate the market themselves. I'm curious if they even see the irony? I wanted to buy $1k as a symbolic obscene gesture yesterday, but I wasn't allowed.

Time for real reform on Wall Street.

[swils8610]

A friend of mine day trades as a hobby. He made out well on GME.


Sent from my iPhone using Tapatalk Pro

[Atone]

Originally Posted by SPMN

I find it amazing that they're cutting off the ability of retail investors to buy GME and others today. To cry about market manipulation and then nakedly manipulate the market themselves. I'm curious if they even see the irony? I wanted to buy $1k as a symbolic obscene gesture yesterday, but I wasn't allowed.

Time for real reform on Wall Street.

It’s unbelievable. When the powerful are threatened, the rules get changed. BS.

[ppbskis]

Originally Posted by breitlings

Wallstreetbets! Also look out for AMC and Nokia, buy buy. It’s how younger people are going to buy stocks.

I put an order in for AMC premarket. Still have not completed trade and it shows pending. Hope the shorts get crushed!


Sent from my iPhone using Tapatalk

[pickettt]

Originally Posted by Atone

It’s unbelievable. When the powerful are threatened, the rules get changed. BS.

Actually, it’s 100% believable.

[asloper6001]

Originally Posted by JasoninDenver

Chamath’s interview on CNBC is must watch tv. He made the point that this is nothing more than the tables being turned on the hedge fund managers for decades. Instead of billionaire Ackman sticking it to billionaire Icahn, its the little guy sticking it to Wall Street. Chamath really hit home that the main driver is the sense of systemic inequity that the millenial era generation feels towards the current financial powers that be. Where their parents may have lost their house and assets during the 2008 crash, the big banks and hedge funds got bailouts. This is nothing more than sticking it to the man. I approve.

Wallstreet/CNBC thinks no one can be smarter than them. Their whole system got exposed and they say these guys can't know what they are doing. It was all right there in front of your face what's happening. Another stain on our society as a whole.

Todays CNBC agenda is to out Reddit as this evil forum. It's just sickening to watch tbh.

[tudorbaja27]

Originally Posted by pickettt

Actually, it’s 100% believable.

Not sure what the surprise is here. Redditors/self-appointed traders can pile up and value it at $1000/share for all purposes - that doesn't change the fact that the underlying value of the stock is absimal. At some point - those who got in early would have looked to cash in - this causing a cute sell-off leaving most "expert day-traders" holding the bag.

There is nothing to hold that stock price. Other than newly, self-appointed day traders in it for the gain pushing one another to buy a hugely overvalued stock. We shouldn't be under the impression these investors would "hold" forever (unless they like holding onto imaginary gains)

[asloper6001]

Originally Posted by tudorbaja27

Not sure what the surprise is here. Redditors/self-appointed traders can pile up and value it at $1000/share for all purposes - that doesn't change the fact that the underlying value of the stock is absimal. At some point - those who got in early would have looked to cash in - this causing a cute sell-off leaving most "expert day-traders" holding the bag.

There is nothing to hold that stock price. Other than newly, self-appointed day traders in it for the gain pushing one another to buy a hugely overvalued stock. We shouldn't be under the impression these investors would "hold" forever (unless they like holding onto imaginary gains)

Exactly the point. Its a trade play on the system designed, not an investment play. It was probably one of the greatest trade plays ever created. Wallstreet changed the rules in the 9th inning though. Lets not lose sight of that.

Trade plays happen everyday. Bc this had deep ties into hedge funds they get relief today to get out of the market. Plain and simple. THE RULES CHANGED for the rich! You can be cool with that, but I'm not.

[Star Ferry]

Whole thing was very funny. Apparently hedge funds have a legal entitlement to hold onto their short positions (bets against the price of a company's stock with unlimited potential loss), even as margin calls make those positions prohibitively expensive to sustain. Sounds like a really cool, really fair system!

[uscmatt99]

Originally Posted by Star Ferry

Whole thing was very funny. Apparently hedge funds have a legal entitlement to hold onto their short positions (bets against the price of a company's stock with unlimited potential loss), even as margin calls make those positions prohibitively expensive to sustain. Sounds like a really cool, really fair system!

Yeah, I asked in another thread about the purpose of options in the market, and I get that hedging with options has the potential to reduce overall risk. This gets capital to companies that are unlikely to succeed but have potential huge upside. That's fantastic.

I'm still trying to figure out how shorting stocks can ever be beneficial enough to the market as a whole when a situation like this can arise. Unlimited potential loss means you are theoretically playing with money you may not have in the future every time you short.

I'm not rooting for a market melt-down. But I wouldn't mind seeing some of these more aggressive funds go under, if anything to offer a lesson that you can fail even if you have friends in high places.

[enjoythemusic]

Originally Posted by pickettt

Actually, it’s 100% believable.

Agreed, and if they need a bailout you know what will happen.

[Dr.Brian]

If there aren’t regulations about this now, there will be very shortly, because nobody crosses the hedge funds. Look at quant funds. I would be shocked if their algorithms DIDN'T try to manipulate the market.

[SPMN]

Just so everyone's aware, we now live in a world where Ted Cruz, AOC, Don Jr, and Ja Rule are all united against Robinhood's financial actions today. I can't wait to read this book.

[asloper6001]

Originally Posted by SPMN

Just so everyone's aware, we now live in a world where Ted Cruz, AOC, Don Jr, and Ja Rule are all united against Robinhood's financial actions today. I can't wait to read this book.

Holllllaaaaa!!!!

Read "when wolves bite" too!

[logo]

I look forward to Christian Bale reprising his role as Michael Burry in the GME squeeze

[Chewbacca]

Originally Posted by logo

I look forward to Christian Bale reprising his role as Michael Burry in the GME squeeze

Waiting for the rolex spotting posts.

[asloper6001]

Originally Posted by Chewbacca

Waiting for the rolex spotting posts.

Hodinkee "licks their lips"

[Chewbacca]

Originally Posted by asloper6001

Hodinkee "licks their lips"

day. ruined.

[asloper6001]

Originally Posted by Chewbacca

day. ruined.

hahahahah