GameStop short selling and Reddit

[77T]

Originally Posted by Etschell

the guy was long the stock for a year and a half and he still owns it.

this isnt martin shkrelli.

Agree - but his long-held position will be sold today methinks - or soon. If not his $47million CV will become vapor.

Time will tell if regulators, elected officials and others paint him as “the con artist”. I’m not judging him just saying he’s in a precarious position.


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[meloncap78]

Originally Posted by yoast

If you can't answer this question yourself, you should probably not be investing in the first place

I didn’t invest. It was a free stock when I got Robinhood. I installed it out of curiosity. I am clueless when it comes to the market.

[GB-man]

Originally Posted by SMD

Melvin isn't f'd, its investors are. And its investors are typically public pension funds. As for people losing confidence in HF's across the board? Highly doubt it. LTCM didn't do it, 2008/09 didn't do it, this isn't going to do it either. I mean would you leave Pershing because of what happened to Melvin?

Pershing wouldn’t let me in the lobby to take a leak let along take my money lol

Doesn’t your wife work at a HF?

[SMD]

Originally Posted by GB-man

Pershing wouldn’t let me in the lobby to take a leak let along take my money lol

Doesn’t your wife work at a HF?

Close. Prime broker at bulge bracket. But she just quit. Sold my business. On to the next thing. Still too poor for the medallion fund though.

[Vetracer]

The hedge funds will win this game in the end. Once these stocks lose momentum (which they will), they’ll come crashing down to reflect their original valuations. Hedge funds will have shorted the stocks all the way down thus recovering their losses and making a huge profit on top.

Many amateur investors will lose their shirts.

[GB-man]

Originally Posted by SMD

Close. Prime broker at bulge bracket. But she just quit. Sold my business. On to the next thing. Still too poor for the medallion fund though.

Congrats! Cheers to whatever comes next for you guys.

[tritium8]

Originally Posted by Chewbacca

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

Right before his IPO. Ouch!

https://twitter.com/chamath/status/1...125611526?s=20

[tritium8]

Originally Posted by 77T

A pump and dump federal charge could of securities fraud could arise due to the fact that he held the stock. In those cases, intent can be construed as “should have known”. After all, he was on the opposite side of the short interest.

Maybe no incarceration, but the financial penalty (if found guilty) could include confiscation of his gains. Bankruptcy beckons. Feel sorry for the family.



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What will be the consequences for citron research? He sold short GME and then provided "research" as to why the stock was over priced and should go lower (which would result in him profiting) but as many outside of here have pointed out, GME was actually in decent financial shape. I think, if anything, Andrew Left is the criminal here using his "research" firm and financial news networks, etc to push stocks in the direction that profited him the most. It seems like there is some naked shorting going on here, too, which means games are being played.

[77T]

Originally Posted by tritium8

What will be the consequences for citron research? He sold short GME and then provided "research" as to why the stock was over priced and should go lower (which would result in him profiting) but as many outside of here have pointed out, GME was actually in decent financial shape. I think, if anything, Andrew Left is the criminal here using his "research" firm and financial news networks, etc to push stocks in the direction that profited him the most. It seems like there is some naked shorting going on here, too, which means games are being played.

Can’t say who might get snared in this debacle. But anyone who says GME fundamentals were sound isn’t doing their homework. The HF’s did and they took the short side.

Just look at last 3 years of GME numbers....

https://www.marketwatch.com/investin...gme/financials


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[interestedwatcher]

Originally Posted by 77T

A pump and dump federal charge could of securities fraud could arise due to the fact that he held the stock. In those cases, intent can be construed as “should have known”. After all, he was on the opposite side of the short interest.

Maybe no incarceration, but the financial penalty (if found guilty) could include confiscation of his gains. Bankruptcy beckons. Feel sorry for the family.



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If they go after the common man making an investment, they will regret it... The common person hates hypocrisy. The only thing they hate more is apparently hedge fund managers.

[77T]

Originally Posted by interestedwatcher

If they go after the common man making an investment, they will regret it... The common person hates hypocrisy. The only thing they hate more is apparently hedge fund managers.

I agree. I just don’t know his true role yet. But he is a potential scapegoat for both sides.


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[BrazenC5]

Originally Posted by brandrea

I get that for sure. As long as there’s a buyer for the stock at a higher price than you paid, your golden

With the short interest there are plenty of captive "buyers."

It's now just a matter of who blinks first. Time is on the long side, their carrying costs are $0.


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[cascavel]

Originally Posted by Vetracer

The hedge funds will win this game in the end. Once these stocks lose momentum (which they will), they’ll come crashing down to reflect their original valuations. Hedge funds will have shorted the stocks all the way down thus recovering their losses and making a huge profit on top.

Many amateur investors will lose their shirts.

Yep, it's gonna be a bloodbath. And you know who will come to the rescue of those amateur investors? No one.

[FLGatorM5]

Originally Posted by BrazenC5

With the short interest there are plenty of captive "buyers."

It's now just a matter of who blinks first. Time is on the long side, their carrying costs are $0.


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I’d now like to introduce my friend called Theta.
She’s sneaky, and it you’re not careful, will take everything out of your wallet, little by little, every night.

[enjoythemusic]

For those curious about short selling, the advantaged hedgies have versus normal trades, etc, please see

https://market-ticker.org/akcs-www?post=241454

i remember years back a European guy coded up a great algo that could front-run the front-running / spoofing big hedge fund HFT platform. HFT platforms (illegally) spoof trades to move markets. Yes this is illegal, yet we know the SEC does nothing about it. The SEC also knows about Jim Cramer manipulating Apple stock, and again the SEC does nothing.

Obviously, the big players were not happy with someone coding up a HFT better than hedgies HFT algo, so the European coder went to jail (how many CEO / CFO / etc went to jail for illegal MBS activities and purposefully misrepresenting their products to investors?). So remember, there are rules / laws for normal traders and different rules / laws for regular traders. The game is indeed rigged to some extent against everyday traders and their system was built that way.

Who will get hurt? Judging by the MBS fraud, no bankers will go to jail, they get bailouts.... paid for by....

PS: Rememeber during 2008-ish in front of congress when Ben Benake was head of the Fed and said the Fed would never monetize US debit. Yeah, the Fed is monetizing debt. So again, the game is indeed rigged and the financial evidence proves this time and time again.

[Etschell]

Short squeezes are nothing new. The difference is now people are realizing how inept it is to allow borrowing of over 100 percent of the stock to sell short. There should be a short sell cap of a percentage of the stock from now on.

What is more telling is the amount of blantant use of non public information by large firms, such as Citadel, to gain advantage over the little retail trader. It has been this way for years. Remeber the HFTs?

Now algo programs are running shop in traders as well. You just cant beat computer programs.

[CalSRQ1]

Originally Posted by 77T

Agree - but his long-held position will be sold today methinks - or soon. If not his $47million CV will become vapor.

Time will tell if regulators, elected officials and others paint him as “the con artist”. I’m not judging him just saying he’s in a precarious position.


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Agree totally on this Paul. The little guy is the absolute easiest to go after in something like this and if he did anything...anything that the big guys can latch onto he will be made the goat. I'm sure they are examining every posting for past 18 months. Today still looking like there's enough knee jerk/bad actors (thanks Robinhood) that maybe everyone tiptoeing through to see how this swings.

Not a bad WSJ interview with him - WSJ is taking a pretty neutral position on it all...but thinking its fascinating that they got and ran the first interview. Not making him into a monster in the interview is interesting and perhaps telling.

[vman]

There is so much LOL and irony in GME trading. I don't know where to begin.

The whole aspect of sticking it to the man falls apart when you consider that the same people who want to protest the greed of 2008 are just as greedy. CNN has an interview with a guy who makes $35K/year, is > $1M on paper due to GME. Refuses to sell because he wants more money and he's upset about 2008 greed. Dude, you're up > 200x, know when to hold 'em, know when to fold 'em.

Speaking of the man, how do you think the man gets $ to close out the short positions? Sell good stocks which drags the whole market down. Thank you, Reddit. Also, let's get rid of short sellers completely so that we don't have any method of leveraging against overvalued stock.

A guy with "value" in the name running a coordinated loose pump and dump scheme.

Net-net, our success with managing social media is clearly a great indicator of what social investing can do. Keep up the good work guys. Now I need to figure out a way to make $ on your transactions. 2008 will certainly repeat itself but now Joe Average, not a bank, will be on the corner on the street holding a bag of overpriced dog poo trying to figure out wtf happened.

[JasoninDenver]

Originally Posted by vman

There is so much LOL and irony in GME trading. I don't know where to begin.

The whole aspect of sticking it to the man falls apart when you consider that the same people who want to protest the greed of 2008 are just as greedy. CNN has an interview with a guy who makes $35K/year, is > $1M on paper due to GME. Refuses to sell because he wants more money and he's upset about 2008 greed. Dude, you're up > 200x, know when to hold 'em, know when to fold 'em.

Speaking of the man, how do you think the man gets $ to close out the short positions? Sell good stocks which drags the whole market down. Thank you, Reddit. Also, let's get rid of short sellers completely so that we don't have any method of leveraging against overvalued stock.

A guy with "value" in the name running a coordinated loose pump and dump scheme.

Net-net, our success with managing social media is clearly a great indicator of what social investing can do. Keep up the good work guys. Now I need to figure out a way to make $ on your transactions. 2008 will certainly repeat itself but now Joe Average, not a bank, will be on the corner on the street holding a bag of overpriced dog poo trying to figure out wtf happened.

I agree with most of your comments but I am curious as to the effects of the coming plunge that we both feel is coming. Granted, the estimated 24% of the current market that is new retail investors will get stung, unless they are investing wisely. However, I think it was Joe Average that got hammered in 2008 as well. The banks got bailouts. Joe Average got foreclosure notices.

In the intervening years, the gains from the financial markets have gone to the top 10% economic strata while the bottom 60% have seen a continued withering of their economic status, job security and overall opportunities. This is what, IMHO, the WSB crowd is rebelling against.

[supernova]

When this comes crashing down, I don’t see many folks been burned hard. If you check out the Reddit pages, it’s huge volumes of people making small trades driving the price up, although yes there are select few buying thousands of shares, which seem like the early ones to go in so most would have made their $. The average Joe will lose max $1-2k which isn’t really life changing.

Things will just go back to normal and the masses of normal folks who thought they could make a quick buck will just go back to their normal lives.

Although I still feel GME has some more legs to run higher due to the millions of people joining. Predicting when that supply of people coming in and the stock crashing is the million $ question!

I also do expect Rolex and other hot watches to go up in price as quite a lot did make substantial $$ in this!

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[dimag333]

Makes you wonder what’s really going on in the world that this is a story......

steve

[cascavel]

Originally Posted by enjoythemusic

For those curious about short selling, the advantaged hedgies have versus normal trades, etc, please see

https://market-ticker.org/akcs-www?post=241454

i remember years back a European guy coded up a great algo that could front-run the front-running / spoofing big hedge fund HFT platform. HFT platforms (illegally) spoof trades to move markets. Yes this is illegal, yet we know the SEC does nothing about it. The SEC also knows about Jim Cramer manipulating Apple stock, and again the SEC does nothing.

Obviously, the big players were not happy with someone coding up a HFT better than hedgies HFT algo, so the European coder went to jail (how many CEO / CFO / etc went to jail for illegal MBS activities and purposefully misrepresenting their products to investors?). So remember, there are rules / laws for normal traders and different rules / laws for regular traders. The game is indeed rigged to some extent against everyday traders and their system was built that way.

Who will get hurt? Judging by the MBS fraud, no bankers will go to jail, they get bailouts.... paid for by....

PS: Rememeber during 2008-ish in front of congress when Ben Benake was head of the Fed and said the Fed would never monetize US debit. Yeah, the Fed is monetizing debt. So again, the game is indeed rigged and the financial evidence proves this time and time again.

I think you have a better understanding of this than I do so here are my two questions:
1)If Treasury is selling debt and the Fed is buying it and keeping it on it's balance sheet, is that monetizing the debt?
2)If there is $23 Trillion of outstanding Treasury debt but the Fed holds $6 Trillion on it's balance sheet, isn't there really only $17 Trillion of net debt outstanding and the U.S. is actually less in debt than it looks?

[vman]

Originally Posted by JasoninDenver

I agree with most of your comments but I am curious as to the effects of the coming plunge that we both feel is coming. Granted, the estimated 24% of the current market that is new retail investors will get stung, unless they are investing wisely. However, I think it was Joe Average that got hammered in 2008 as well. The banks got bailouts. Joe Average got foreclosure notices.

In the intervening years, the gains from the financial markets have gone to the top 10% economic strata while the bottom 60% have seen a continued withering of their economic status, job security and overall opportunities. This is what, IMHO, the WSB crowd is rebelling against.

2008 was a lesson for all--don't be greedy. No one forced anyone to over-leverage. I remember a co-worker running around tell me that her house went up 30% "just because" and other people, including family, contemplating purchases they could not afford. If you got an ARM that pushes your budget when interests are low, sorry, you gotta take some responsibility for your actions.

Speaking of actions, two wrongs don't make it right. Burning down the ship because you don't like some of the regulations on board is not the winning move. We'll see how this turns out.

[FLGatorM5]

Originally Posted by vman

There is so much LOL and irony in GME trading. I don't know where to begin.

The whole aspect of sticking it to the man falls apart when you consider that the same people who want to protest the greed of 2008 are just as greedy. CNN has an interview with a guy who makes $35K/year, is > $1M on paper due to GME. Refuses to sell because he wants more money and he's upset about 2008 greed. Dude, you're up > 200x, know when to hold 'em, know when to fold 'em.

Speaking of the man, how do you think the man gets $ to close out the short positions? Sell good stocks which drags the whole market down. Thank you, Reddit. Also, let's get rid of short sellers completely so that we don't have any method of leveraging against overvalued stock.

A guy with "value" in the name running a coordinated loose pump and dump scheme.

Net-net, our success with managing social media is clearly a great indicator of what social investing can do. Keep up the good work guys. Now I need to figure out a way to make $ on your transactions. 2008 will certainly repeat itself but now Joe Average, not a bank, will be on the corner on the street holding a bag of overpriced dog poo trying to figure out wtf happened.

Glad someone (else) said it.

[austinp]

So which one are we all buying Monday?


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[texasmade]

https://www.nbcdfw.com/news/national...9MmG8GLu8ZVQwc

I'm glad someone is using some of their GME gains to purchase from GameStop and donate to sick kids. I hope more people do this.

[tudorbaja27]

Originally Posted by vman

There is so much LOL and irony in GME trading. I don't know where to begin.

The whole aspect of sticking it to the man falls apart when you consider that the same people who want to protest the greed of 2008 are just as greedy. CNN has an interview with a guy who makes $35K/year, is > $1M on paper due to GME. Refuses to sell because he wants more money and he's upset about 2008 greed. Dude, you're up > 200x, know when to hold 'em, know when to fold 'em.

Speaking of the man, how do you think the man gets $ to close out the short positions? Sell good stocks which drags the whole market down. Thank you, Reddit. Also, let's get rid of short sellers completely so that we don't have any method of leveraging against overvalued stock.

A guy with "value" in the name running a coordinated loose pump and dump scheme.

Net-net, our success with managing social media is clearly a great indicator of what social investing can do. Keep up the good work guys. Now I need to figure out a way to make $ on your transactions. 2008 will certainly repeat itself but now Joe Average, not a bank, will be on the corner on the street holding a bag of overpriced dog poo trying to figure out wtf happened.

Give this man a prize

[TheVTCGuy]

I am reading the news and this gamestop thing is all over the world. I have ready everything from people made billions over night to five countries declared bankruptcy because of it. Could someone explain, in Dorklehead terms of course I have ZERO knowledge of stocks and trading, what the hell actually happened?

[tudorbaja27]

Originally Posted by TheVTCGuy

I am reading the news and this gamestop thing is all over the world. I have ready everything from people made billions over night to five countries declared bankruptcy because of it. Could someone explain, in Dorklehead terms of course I have ZERO knowledge of stocks and trading, what the hell actually happened?

How Options-Trading Redditors Fed the GameStop Activity https://on.wsj.com/3iV89nA

This should help

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[logo]

Originally Posted by TheVTCGuy

I am reading the news and this gamestop thing is all over the world. I have ready everything from people made billions over night to five countries declared bankruptcy because of it. Could someone explain, in Dorklehead terms of course I have ZERO knowledge of stocks and trading, what the hell actually happened?

It was collectively determined that we are all buying GME, AMC, BB, NOK to squeeze the suits and won’t sell until we have reached lunar orbit