GameStop short selling and Reddit

[logo]

Originally Posted by asloper6001

Hodinkee "licks their lips"

hahaha

[asloper6001]

Originally Posted by uscmatt99

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.

Your answer from Papa Elon. Melvin tried to wipe him out multiple times. The greatest entrepreneur of our time. He could be the one holding GME up. He loves video games and hates Melvin. It makes perfect sense since he was on the WSB discord for sure. (Pure Speculation)

[Star Ferry]

Elon gets the basics of finance, he was a Wharton undergrad. It's not productive enough activity to constitute 6% of our economy. It's like a 6% tax that society pays to an insular elite club

I'm not saying we ban all derivatives (and for practical purposes a short sale is a derivative. If shorts are >100% of float for example, it's because the shorted shares were not literally borrowed). But at least I'd like to see position limits... we don't let people insure a 500K home for 10 million for a reason: moral hazard.

Financial services will always say it's "more complicated than that" as if they perform a type of Harry Potter magic that nobody else can do

[brandrea]

Regulators ... RIDE (borrowed that from Young Guns)

https://www.bloomberg.com/news/artic...n-gamestop-amc

[asloper6001]

Originally Posted by Star Ferry

Elon gets the basics of finance, he was a Wharton undergrad. It's not productive enough activity to constitute 6% of our economy. It's like a 6% tax that society pays to an insular elite club

I'm not saying we ban all derivatives (and for practical purposes a short sale is a derivative. If shorts are >100% of float for example, it's because the shorted shares were not literally borrowed). But at least I'd like to see position limits... we don't let people insure a 500K home for 10 million for a reason: moral hazard.

Financial services will always say it's "more complicated than that" as if they perform a type of Harry Potter magic that nobody else can do

Agree 100%. Cap the greed.

[Etschell]

deepfuckingvalue turned 50k into 33 million but lost 15 million today:

[SPMN]

Originally Posted by Etschell

deepfuckingvalue turned 50k into 33 million but lost 15 million today:

With Robinhood announcing that they'll allow GME buying tomorrow I think Mr Value is going to make back those losses.

[RyanJ]

Originally Posted by Atone

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

Completely believable. It is how it has always been. Only lately has it become "acceptable" to just outright flaunt it.

[asloper6001]

Oh lord breaking now is that Janet Yellen got 800k from said hedge funds to speak. The money and power tree is expanding.

[Etschell]

Originally Posted by SPMN

With Robinhood announcing that they'll allow GME buying tomorrow I think Mr Value is going to make back those losses.

maybe, maybe not. he could have closed it today. but i guess he wants 200 million. he or the fund behind him who really knows.

[Star Ferry]

I admit this was a loosely coordinated pump and dump scheme. But what about Tesla? People have pumped that as well, and short sellers have taken a bath. Who has a more valuable business: Musk or Bezos? To me the answer is Bezos and not even close

The pricing of gamestop was certainly irrational relative to the fundamentals. But there have been asset run-ups that lasted for years. in the tech bubble and housing bubble / mortgage crisis it took years and systemic damage before corrective action was taken. But when poor people run up Gamestop stock, action is taken almost instantly? Alrighty then.

epistemically, how is a mortgage broker saying "They aren't making more land! Real estate goes up" any different than an online troll claiming "Stonks only go up! To the moon, boys!"

[asloper6001]

Originally Posted by Star Ferry

I admit this was a loosely coordinated pump and dump scheme. But what about Tesla? People have pumped that as well, and short sellers have taken a bath. Who has a more valuable business: Musk or Bezos? To me the answer is Bezos and not even close

The pricing of gamestop was certainly irrational relative to the fundamentals. But there have been asset run-ups that lasted for years. in the tech bubble and housing bubble / mortgage crisis it took years and systemic damage before corrective action was taken. But when poor people run up Gamestop stock, action is taken almost instantly? Alrighty then.

epistemically, how is a mortgage broker saying "They aren't making more land! Real estate goes up" any different than an online troll claiming "Stonks only go up! To the moon, boys!"

Yep and backdoor hedge fund parties are perfectly fine. Blaming retail here is sickening. They got kicked in the balls in their own game and now cry foul play.

This story has a lot of play left in it. People are digging to find out who the hell told RH to basically halt the stocks today. Some major speculations going on to who was talking to RH. It's the Epstein of WS. It's going to get ugly. As in investor this really sucks, but something has to happen.

[Jackie Daytona]

You have to love this story. Essentially a bunch of guys sitting around watching Trading Places say.... hey we could do that and won. If only for a little bit anyways.

[CamSLC]

Originally Posted by Etschell

deepfuckingvalue turned 50k into 33 million but lost 15 million today:

He's taken about $10mm off the table just this week. Congrats to that fella.

Also that looks like the fidelity platform, where you can still buy and sell, but not short obviously.

[dimag333]

Originally Posted by asloper6001

Oh lord breaking now is that Janet Yellen got 800k from said hedge funds to speak. The money and power tree is expanding.

not surprised there

steve

[JasoninDenver]

Robinhood CEO is giving the most pathetic explanation for his actions on CNBC. Apparently, he did not have the volume in cash to deposit into clearinghouses???
Someone explain, please.

[asloper6001]

Originally Posted by JasoninDenver

Robinhood CEO is giving the most pathetic explanation for his actions on CNBC. Apparently, he did not have the volume in cash to deposit into clearinghouses???
Someone explain, please.

Simple. Lies.

[Fleetlord]

I have a dumb question ��*♂️

Are people trying to sell GameStop but the market isn’t buying any now because it’s so overvalued?

[RW16610]

Interesting little clip here with Jordan Belfort.



Mark Cuban

[enjoythemusic]

Originally Posted by JasoninDenver

Robinhood CEO is giving the most pathetic explanation for his actions on CNBC. Apparently, he did not have the volume in cash to deposit into clearinghouses???
Someone explain, please.

Lie. Less then a minute later he said Robinhood does not have a liquidity problem.

Which it is?!!

Many questions not asked, such as how much $$ / percentage of income Robindhood makes from Citadel and their affiliates in selling data and book / flow? Who is it that Robinhood depends on for credit line / banking to secure operation / etc?

[JParm]

The inside story from the beginning (worth a read!):

https://twitter.com/endtwist/status/1354547622133051393

[FLGatorM5]

Originally Posted by Fleetlord

I have a dumb question ��*

Are people trying to sell GameStop but the market isn’t buying any now because it’s so overvalued?

People that want to short, can’t. You have to find shares to borrow before you sell them short.

If no one is letting their shares be borrowed, or there’s massive buying, the firm will limit short trades.

[Chewbacca]

Originally Posted by brandrea

Regulators ... RIDE (borrowed that from Young Guns)

https://www.bloomberg.com/news/artic...n-gamestop-amc

Good movie.

[Chewbacca]

Originally Posted by JasoninDenver

Robinhood CEO is giving the most pathetic explanation for his actions on CNBC. Apparently, he did not have the volume in cash to deposit into clearinghouses???
Someone explain, please.

He’ll resign before being subpoenaed if he gets immunity.

[MILGAUSS88]

I noticed one of the large GME investors is the CEO of Chewy.
Coincidence??? I think not. Caught you "Chewbacca." If that's your real name.

[TK-710]

Someone is going to need to set-up a high-stakes poker game to cover their colossal short sale losses (Everything I know about short sales I learned from watch Bond).

[asloper6001]

The RH owner was not lying like I said above. Please excuse me! haha It is the clearing house.

The platforms are being controlled bc of liquidity problems. These hedge funds are so deep into the whole transaction that now that they're going broke the middle men wont take any deals on the stocks to payout bc they will be left holding the bag (they are scared the hedges are going down). I stopped watching CNBC and accused the RH owner of lying in the other thread but it isnt true and makes sense. They are being controlled on the back end via clearing houses.

This is the video that explains it. Its quite long, but at one point he draws a chart and shows the money flow.

https://www.youtube.com/watch?v=w_YE...ature=youtu.be

Its quite astonishing they are shorting these stocks so much and then funding the deals also to an extent. Its all fucked up in big cluster.

[JodyHighroller]

Originally Posted by asloper6001

The RH owner was not lying like I said above. Please excuse me! haha It is the clearing house.

The platforms are being controlled bc of liquidity problems. These hedge funds are so deep into the whole transaction that now that they're going broke the middle men wont take any deals on the stocks to payout bc they will be left holding the bag. I stopped watching CNBC and accused the RH owner of lying in the other thread but it is true and makes sense. They are being controlled on the back end via clearing houses.

This is the video that explains it. Its quite long, but at one point he draws a chart and shows the money flow.

https://www.youtube.com/watch?v=w_YE...ature=youtu.be

Link says video is unavailable?

[asloper6001]

Originally Posted by JodyHighroller

Link says video is unavailable?

Updated in op. Chart is roughly at 1:33

[denmanproject]

I almost jumped into GME this morning but held off since I just can’t see the value of the actual company

BB I am ok with, they got some big stuff coming down the pipe