NFT: NFT: wallstreetbets and gamestop stock

Reddit vs the hedge funds.
r/WallStreetBets trying to squeeze the short sellers. - ( New Window )

As an outsider in every respect, this is super interesting to me.

he is making a killing right now

@ShaanVP
to be clear. This has nothing to do with gamestop as a business. They are just a piece of rope being used in a tug of war between internet nerds and wall st suits.

the rally cry on r/wallstreet bets:

"we can remain retarded for longer than they can stay solvent!"

overly negative. I'm glad they are getting their head handed to them. I read the article linked above, and the short seller is crying "look at the valuation". Well maybe he should have done the same when he was bashing it down to unfairly low levels just to make a buck. They are doing no different, over inflating the data to drive the stock too high. I'm glad he is getting a dose of his own medicine.

Well, not so much in this case. Shorts are getting their heads handed to them.

Joe Weisenthal
@TheStalwart
Back to back terminal headlines

*CHAMATH PALIHAPITIYA: WE BOUGHT FEBRUARY $115 CALLS ON GAMESTOP

*CIRCUIT BREAKER: GME (NYSE)-VOLATILITY TRADING PAUSE

Its a valid point to think it will go down. But what these guys do is manipulation. They and their buddies pile on, and then they go on CNBC and bash away even though they know they are full of it

but STILL need this dumbed down for me (like Michael Scott)

Wouldn't the reddit crew have to buy nearly all available shares for this to happen, literally a market mover? Why isn't it possible that this happens more?

In comment 15134610 Heisenberg said:

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Reddit vs the hedge funds. r/WallStreetBets trying to squeeze the short sellers. - ( New Window )

great article .. thanks..

In comment 15134686 The Dude said:

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but STILL need this dumbed down for me (like Michael Scott) Wouldn't the reddit crew have to buy nearly all available shares for this to happen, literally a market mover? Why isn't it possible that this happens more?

the article Heisenberg linked above is a very good blow by blow.

In comment 15134717 Producer said:

Quote:

In comment 15134686 The Dude said: Quote: but STILL need this dumbed down for me (like Michael Scott) Wouldn't the reddit crew have to buy nearly all available shares for this to happen, literally a market mover? Why isn't it possible that this happens more? the article Heisenberg linked above is a very good blow by blow.

Is there a synopsis that's not behind a paywall?

In comment 15134733 JayBinQueens said:

Quote:

In comment 15134717 Producer said: Quote: In comment 15134686 The Dude said: Quote: but STILL need this dumbed down for me (like Michael Scott) Wouldn't the reddit crew have to buy nearly all available shares for this to happen, literally a market mover? Why isn't it possible that this happens more? the article Heisenberg linked above is a very good blow by blow. Is there a synopsis that's not behind a paywall?

i don't think the bloomberg is behind a paywall. I don't have subscription and i see the whole thing. Try again?

but it loaded on my phone.

In comment 15134686 The Dude said:

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but STILL need this dumbed down for me (like Michael Scott)

Check out this Youtube video by Louis Rossman (see link below). Basically, the shorts got greedy by continuing to short the stock over 100% of the value (which should be illegal), and despite the fact the company wasn't doing that badly. It's a great video simplifying what's going on. Lots of NSFW language, but Louis is a great listen, and I'm a fan of his (his videos on NYC real estate are hysterically funny)
Why mainstream media's slander of wallstreetbets pisses me off regarding GME. - ( New Window )

This WSB story had me on the floor last night.
ControltheNarrative Games Robinhood - ( New Window )

finally fought back.

Like this - the Reddit read through and ensuing articles are fascinating

In comment 15134686 The Dude said:

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but STILL need this dumbed down for me (like Michael Scott) Wouldn't the reddit crew have to buy nearly all available shares for this to happen, literally a market mover? Why isn't it possible that this happens more?

The Reddit crew (and other investors now) know that the folks with the short positions are on the clock. So they are buying every dip (if they can). Because they believe that that when the time runs out for the short sellers, they'll be forced to buy at ridiculous prices. Folks are posting screenshots where they've put 80-100% of their account all into GME.

And there's this crazy populist side to things. GME first popped up there as a legit value long play. People loved the new management and the plan to reinvent the store. Then when some of the hedge funds started to short GME, perhaps pushing it to bankruptcy, folks got mad. Once they realized that so many had these short positions, the rallying cry to "squeeze the boomer billionaires" went out and now folks are going bananas in this battle. Right now, Reddit is winning. We'll see how it ends up.

I've been following this guy. I bought it at $38 after a post from this guy. Still holding.
Update on GME - ( New Window )

picked up 300,000 new followers in the past few days. Over 2 million now. Full of meatheads buying GME.

Eventually the music will stop, it will come back down to what it's actually worth and a lot of regular people are going to get hosed.

In comment 15134920 Heisenberg said:

Quote:

In comment 15134686 The Dude said: Quote: but STILL need this dumbed down for me (like Michael Scott) Wouldn't the reddit crew have to buy nearly all available shares for this to happen, literally a market mover? Why isn't it possible that this happens more? The Reddit crew (and other investors now) know that the folks with the short positions are on the clock. So they are buying every dip (if they can). Because they believe that that when the time runs out for the short sellers, they'll be forced to buy at ridiculous prices. Folks are posting screenshots where they've put 80-100% of their account all into GME. And there's this crazy populist side to things. GME first popped up there as a legit value long play. People loved the new management and the plan to reinvent the store. Then when some of the hedge funds started to short GME, perhaps pushing it to bankruptcy, folks got mad. Once they realized that so many had these short positions, the rallying cry to "squeeze the boomer billionaires" went out and now folks are going bananas in this battle. Right now, Reddit is winning. We'll see how it ends up.

How long can you keep short positions? Thats the one thing I don't get.

last Friday about this but some dude kept suggesting what was going on was securities fraud. Guy must be a riot at parties.

It hit $144 about 5 min ago.

To have just one free shot at Andrew Left's nutsack.

What a story

Price now up ~190 in post-market

the SEC does about this. Or what position they take. No matter what they are going to look like the bad guy.

over $230 lol

Gamestopped: (verb) to have long and successful investment career terminated by once in a generation short squeeze.

In comment 15135103 Mike from SI said:

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the SEC does about this. Or what position they take. No matter what they are going to look like the bad guy.

Like prosecute those with uncovered shorts?

Its been a really crazy story. The book/movie on this will be fantastic and I dont think its close to over. I have read that the HFs have had huge margin calls on this.

In comment 15135103 Mike from SI said:

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the SEC does about this. Or what position they take. No matter what they are going to look like the bad guy.

What can (or should) the SEC do? the ones who stand to lose the most were the ones guilty of manipulating the markets in the first place.

if I understand it right.

What are they gonna do? Fine @noobmaster69for posting $GME rocket emojis with genuine DD?

In comment 15135142 pjcas18 said:

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In comment 15135103 Mike from SI said: Quote: the SEC does about this. Or what position they take. No matter what they are going to look like the bad guy. What can (or should) the SEC do? the ones who stand to lose the most were the ones guilty of manipulating the markets in the first place. if I understand it right.

furthermore, what can the SEC do about a bunch of people who don't really know each other who aren't institutional investors who decide to buy a stock.

What I don't get is how buying such minor amounts of stock (the Redditers) was able to drive the value of GME stock up so high. Was there that limited amount of available stock when they bought and they basically cornered that?

his social media by now. That man moves markets.

“Stonks, you say?”

In comment 15134974 KWALL2 said:

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I've been following this guy. I bought it at $38 after a post from this guy. Still holding. Update on GME - ( New Window )

I love that breakdown, thanks for the link

Everything is ITM on expirys inside of 50 days. I found some 220s and 230 calls available in March and April trending around $44.

In comment 15134974 KWALL2 said:

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I've been following this guy. I bought it at $38 after a post from this guy. Still holding. Update on GME - ( New Window )

Nuts. Way to go. 248 after hours

In comment 15134993 Zeke's Alibi said:

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How long can you keep short positions? Thats the one thing I don't get.

Theoretically you can hold it forever, as long as you can afford to pay the interest. Practically, there are two things that could prevent that:

1) As the price rises, you need to put up more money. Your broker requires you to maintain a certain percentage of the value of the shorted stock in cash in your account. If you fall short, the broker makes a margin call. Fail to pony up and your position is closed out at the current market rate.

2) A short sale is a broker mediated borrowing of shares. If you short 100 shares of a stock, one of their other clients owns 100 shares that you’re borrowing. If the prices goes up enough, clients will sell their shares. If your broker doesn’t have enough left to lend out, your position gets closed automatically at the market rate and you’re screwed.

I'm not taking sides, I'm just fascinated by this whole thing. I do think you can conspire with a bunch of strangers on the internet to manipulate a stock and that's illegal (NOT saying that is necessarily happening here). I do think you can fine RandomRedditor69420 for pumping and dumping a stock on the message board if that's what he's doing (again, NOT saying anyone is doing that).

On the one hand, if the SEC goes after some of these Reddit individuals, it looks like it's unfairly favoring the hedge funds with short positions (as one could argue they manipulate prices in a more sophisticated/acceptable manner). If the SEC does nothing, do we want to live in a world where a bunch of people on Reddit can just decide on one stock and then pump it to the moon to squeeze the shorts?

I don't have any good answers here I just think it's interesting to consider.

In comment 15135170 Mike from SI said:

Quote:

I'm not taking sides, I'm just fascinated by this whole thing. I do think you can conspire with a bunch of strangers on the internet to manipulate a stock and that's illegal (NOT saying that is necessarily happening here). I do think you can fine RandomRedditor69420 for pumping and dumping a stock on the message board if that's what he's doing (again, NOT saying anyone is doing that). On the one hand, if the SEC goes after some of these Reddit individuals, it looks like it's unfairly favoring the hedge funds with short positions (as one could argue they manipulate prices in a more sophisticated/acceptable manner). If the SEC does nothing, do we want to live in a world where a bunch of people on Reddit can just decide on one stock and then pump it to the moon to squeeze the shorts? I don't have any good answers here I just think it's interesting to consider.

i'm not sure you can go after a bunch of people - reddit schmucks -- for deciding to buy a stock.

Is a good time to short the stock?

In comment 15134995 RomanWH said:

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last Friday about this but some dude kept suggesting what was going on was securities fraud. Guy must be a riot at parties.

I know I remember

In comment 15134993 Zeke's Alibi said:

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How long can you keep short positions? Thats the one thing I don't get.

Not a time limit per se, but short sellers have to pay a daily "borrow rate" on the shares they sold short.

...

In comment 15135170 Mike from SI said:

Quote:

I'm not taking sides, I'm just fascinated by this whole thing. I do think you can conspire with a bunch of strangers on the internet to manipulate a stock and that's illegal (NOT saying that is necessarily happening here). I do think you can fine RandomRedditor69420 for pumping and dumping a stock on the message board if that's what he's doing (again, NOT saying anyone is doing that). On the one hand, if the SEC goes after some of these Reddit individuals, it looks like it's unfairly favoring the hedge funds with short positions (as one could argue they manipulate prices in a more sophisticated/acceptable manner). If the SEC does nothing, do we want to live in a world where a bunch of people on Reddit can just decide on one stock and then pump it to the moon to squeeze the shorts? I don't have any good answers here I just think it's interesting to consider.

This already happens. And has been happening. That said I’ve never seen anything quite like this with it all out in the open with explicit manipulation tactics. This is wild

Not everybody on Reddit is a meathead.
Link - ( New Window )

Investors are already on the phone with the sec with both parties working to figure out how this can never happen again.

In comment 15135226 bubba0825 said:

Quote:

Investors are already on the phone with the sec with both parties working to figure out how this can never happen again.

squash the little guy

It looks like the same guys who were promoting $GME on stocktwits are pushing $amc with significant AH action.

I'm starting to think the stock market is rigged. ;-)

I don’t think we survived that crash!

now becoming more widely known, I think more ppl are gonna try to jump aboard at market open tomorrow. Premarket action will be telling. Fomo effect is real and you'll see a lot of new Robinhooders throw some cash at this. Individuals could try to short it but that'd be trying to stop a snowball rolling downhill that's grown to the size of a toolshed.

Elon's single tweet drove GME super high in AH today. Imagine if Dave Portnoy does a video about GameStop later on this week? If Barstool's large following throws all their degenerate gambling energy at this by week's end? It might actually have a chance at a 1K stock price.

has tweeted about DOGE too, and it had it's biggest run ever. Settled back down, but he has that effect.

In comment 15135308 glowrider said:

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It looks like the same guys who were promoting $GME on stocktwits are pushing $amc with significant AH action.

What was the logic behind AMC?

In comment 15135439 JayBinQueens said:

Quote:

In comment 15135308 glowrider said: Quote: It looks like the same guys who were promoting $GME on stocktwits are pushing $amc with significant AH action. What was the logic behind AMC?

High short interest.

Quote:

Tanay Jaipuria @tanayj The redditor who started the $GME saga DeepFuckingValue has turned his $50K position into >$22M https://reddit.com/r/wallstreetbe

In comment 15135443 pjcas18 said:

Quote:

Quote: Tanay Jaipuria @tanayj The redditor who started the $GME saga DeepFuckingValue has turned his $50K position into >$22M https://reddit.com/r/wallstreetbe

And he's not selling. FYI, he's got a youtube channel. Yes, it's him.
Roaring Kitty - ( New Window )

In comment 15135439 JayBinQueens said:

Quote:

In comment 15135308 glowrider said: Quote: It looks like the same guys who were promoting $GME on stocktwits are pushing $amc with significant AH action. What was the logic behind AMC?

LOGIC???? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

In comment 15135170 Mike from SI said:

Quote:

I'm not taking sides, I'm just fascinated by this whole thing. I do think you can conspire with a bunch of strangers on the internet to manipulate a stock and that's illegal (NOT saying that is necessarily happening here). I do think you can fine RandomRedditor69420 for pumping and dumping a stock on the message board if that's what he's doing (again, NOT saying anyone is doing that). On the one hand, if the SEC goes after some of these Reddit individuals, it looks like it's unfairly favoring the hedge funds with short positions (as one could argue they manipulate prices in a more sophisticated/acceptable manner). If the SEC does nothing, do we want to live in a world where a bunch of people on Reddit can just decide on one stock and then pump it to the moon to squeeze the shorts? I don't have any good answers here I just think it's interesting to consider.

One point, what you say about Reddit above is exactly the same thing the "shorts" have been doing. In these extreme cases it's not just some people betting against a stock. Its an organized effort of buying lots of puts and then going to the media with negative news. Same on both sides

I honestly don't know much about the stock market and have no clue what to do with this thing.
I was going to sell over the weekend at $65 and be happy. Now it's at $200.
Last week I joked I would sell at $200. Should I amend that figure to $500?

Heavily shorted. And surging in after hours. AMC up 300% in after hours. Of course, I sold it yesterday. Yes, yesterday about 15 min before close. :(

this is nuts

I imagine it will be a halty day.

get called out. Was reading on Reddit that this short didn't make much sense other these guys knew the perception of a company like Gamestop. Brick and mortar retail company and would bail once they got the ball rolling on trashing the stock. They put out a pretty detailed post as to the reasons why and most of it had to do with their board who have a succesful eCommerce story with Chewy. Their financials are actually pretty solid for a brick and mortar retail store and their business hasn't been shrinking nearly as fast as predicted. Score one for the autists over on Reddit.

GME has been a topic of discussion with my friends for months now. Personally I see them shifting into more of a gaming brand than retailer. I can see a big box store buying them and marketing their entire electronics department as "Gamestop". Its kinda how I feel the XFL will go to - less about football and more of a brand that will have its toe in many facets of the entertainment industry.

Just my $0.02, could be completely wrong of course.

“ Blue Horseshoe loves Anacott Steel”

Just sold 4 to recoup the initial investment. Still have the rest and I'm playing with house money now. I don't believe everything that these WSB guys are saying but I believe that they believe it. So, I'm in to see how far they can pump this thing up before it collapses like a house of cards.

GME at 370 and AMC at 16

Up 200% today too. Not getting talked about as much. I sold AMC yesterday but holding this one since Mon at $3.1.

what do i do? lol

In comment 15135825 DC Gmen Fan said:

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what do i do? lol

I don't know what $100 means to you if you lose it all but if you don't really care about it then just pick one. GME to me probably has an end soon in sight but AMC could be a decent gamble. I also think the movie industry will be back so long term its probably a solid investment.

they're doing and we just want to help the little guy be better, so we need to stop this.

The brokers have put restrictions on these stocks now, in addition to the halts.

God forbid retail traders get an edge.

Being a novice what books would you guys recommend to get started trading?

Thanks in advance

In comment 15135865 glowrider said:

Quote:

they're doing and we just want to help the little guy be better, so we need to stop this. The brokers have put restrictions on these stocks now, in addition to the halts. God forbid retail traders get an edge.

Of course they're going to say that. F them.


The only restrictions i saw were buying shorts on GME & AMC

Crushing the host on CNBC who's saying the retail guys are fools while the hedge fund shorts 150% of the companies stock.

of the stock market? I mean hell if Elon can tweet one word and send the market into a tizzy, and reddit can influence like this, what is the end game?

In comment 15135885 KWALL2 said:

Quote:

Crushing the host on CNBC who's saying the retail guys are fools while the hedge fund shorts 150% of the companies stock.

I'm a big fan of his. Anyway, anecdotally, I've seen a lot of my friends who were not really inclined to invest at all become retail investors during Covid. I genuinely wonder if the "democratization" so to speak of trading, via apps like Robinhood, is permanently ushering in a new era of significantly higher levels of retail traders.

This video of CNBC/Andrew Sorkin is making the rounds as a
veiled attempt to trick the reddit squad into stopping.

I would think this is easy to verify, no? If Melvin didn't actually exit, could this be subject to SEC investigation?
Link - ( New Window )

Are you in any of his SPACS?

People want to invest their money without the hassle of the major brokerage firms, or deal with the quirky fees. This generation is about ease of use and transparency.

of the Chamath segment on CNBC. Solid work on his part. Completely agree with his call for full transparency. It's a factor in why so many ppl love Cathie Woods' Ark Investment ETFs.

In comment 15135885 KWALL2 said:

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Crushing the host on CNBC who's saying the retail guys are fools while the hedge fund shorts 150% of the companies stock.

That was so cringey and tone deaf by Wapner. Chamath took him behind the woodshed.

In comment 15135487 PatersonPlank said:

Quote:

In comment 15135170 Mike from SI said: Quote: I'm not taking sides, I'm just fascinated by this whole thing. I do think you can conspire with a bunch of strangers on the internet to manipulate a stock and that's illegal (NOT saying that is necessarily happening here). I do think you can fine RandomRedditor69420 for pumping and dumping a stock on the message board if that's what he's doing (again, NOT saying anyone is doing that). On the one hand, if the SEC goes after some of these Reddit individuals, it looks like it's unfairly favoring the hedge funds with short positions (as one could argue they manipulate prices in a more sophisticated/acceptable manner). If the SEC does nothing, do we want to live in a world where a bunch of people on Reddit can just decide on one stock and then pump it to the moon to squeeze the shorts? I don't have any good answers here I just think it's interesting to consider. One point, what you say about Reddit above is exactly the same thing the "shorts" have been doing. In these extreme cases it's not just some people betting against a stock. Its an organized effort of buying lots of puts and then going to the media with negative news. Same on both sides

Yeah that's what I meant by "as one could argue they manipulate prices in a more sophisticated/acceptable manner."

There can be a really thin line between having a strong belief and announcing/broadcasting it versus market manipulation. I think what the SEC will try to do is pick off a few of the bigger "bad" actors who are more clearly trying to manipulate, but again that's hard to determine. A good defense lawyer defending an individual Redditor will go to a jury and frame it as SEC/hedge funds versus the little guy. I'm so glad I don't work at the SEC right now lol.

bag?

Even if you believe fundamentally there was no reason to short game stop other than manipulation, there's also no fundamental reason for it to be trading at these levels, so when the buying dries up, it will settle in at a reasonable spot, a lot of people going to lose.

Just it won't be the hedge fund, who settled. it will be the people who bought on the way up.

Ridiculous

In comment 15136002 glowrider said:

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Ridiculous

what's ridiculous about that? what are they supposed to say? "We don't know what you're talking about?" "We're interceding."

They said just the right thing.

In comment 15136009 Producer said:

Quote:

In comment 15136002 glowrider said: Quote: Ridiculous what's ridiculous about that? what are they supposed to say? "We don't know what you're talking about?" "We're interceding." They said just the right thing.

Ridiculous that this has gone from Reddit to the WH. Not that they’re monitoring.

If they move to halt trading for a few days though, which is what the Mass regulator was pushing earlier, that would be outrageous.

In comment 15136029 glowrider said:

Quote:

In comment 15136009 Producer said: Quote: In comment 15136002 glowrider said: Quote: Ridiculous what's ridiculous about that? what are they supposed to say? "We don't know what you're talking about?" "We're interceding." They said just the right thing. Ridiculous that this has gone from Reddit to the WH. Not that they’re monitoring. If they move to halt trading for a few days though, which is what the Mass regulator was pushing earlier, that would be outrageous.

well it's gone from an interesting financial story to front page everywhere. We're in a moment. We're all hearing about.

People would be incredulous. It would be such a bad look.

As I understand it, COB Friday is liquidation armageddon for the shorts. The big money and all their friends in high places will do anything to stop that.

If you're in on GME, seems like the prevailing thought is to hold until Friday at a minimum just due to the number of shorts that are due then.

In comment 15136261 Tyrion said:

Quote:

If you're in on GME, seems like the prevailing thought is to hold until Friday at a minimum just due to the number of shorts that are due then.

What does that even mean? Are the people who are short GME not required to keep their margin accounts current on a regular basis? Seems like that’s a disaster from a custodial standpoint.

Discord server pulled. This is totally nuts

In comment 15136405 mattlawson said:

Quote:

Discord server pulled. This is totally nuts

On Reddit, set to private is different than being down. The moderators of the subreddit made that decision themselves -- it didn't crash or get taken down by "higher powers" so to speak

In comment 15136407 Bear vs Shark said:

Quote:

In comment 15136405 mattlawson said: Quote: Discord server pulled. This is totally nuts On Reddit, set to private is different than being down. The moderators of the subreddit made that decision themselves -- it didn't crash or get taken down by "higher powers" so to speak

Discord claims it banned the sub:

Quote:

Here is Discord’s full statement: The server has been on our Trust & Safety team’s radar for some time due to occasional content that violates our Community Guidelines, including hate speech, glorifying violence, and spreading misinformation. Over the past few months, we have issued multiple warnings to the server admin. Today, we decided to remove the server and its owner from Discord for continuing to allow hateful and discriminatory content after repeated warnings. To be clear, we did not ban this server due to financial fraud related to GameStop or other stocks. Discord welcomes a broad variety of personal finance discussions, from investment clubs and day traders to college students and professional financial advisors. We are monitoring this situation and in the event there are allegations of illegal activities, we will cooperate with authorities as appropriate.

Underneath them while the stocks drop AH. Completely unrelated to the events of the day.

I had no idea Discord monitored chats to that degree in the first place. I realize they're not private or encrypted or anything, but that's different than moderators patrolling your group chats.

.

tomorrow will be 10x so.

they had to shut the subreddit down. The Discord server is down. They are being attacked by the wealthy elite for sure. I have work related restrictions which prevent me from participating in such madness but if I could I would buy in just to stick it to the short sellers...its ok when they smell blood and profit but not when other do? Fuck them.

But Chamath absolutely destroyed that CNBC host today.

Guy was like what about the retail investor that's gonna end up losing here!!!!

Ummm..the same retail investor that is on the losing end of this the past 40 years?

In comment 15136489 The Dude said:

Quote:

But Chamath absolutely destroyed that CNBC host today. Guy was like what about the retail investor that's gonna end up losing here!!!! Ummm..the same retail investor that is on the losing end of this the past 40 years?

Chamath made 500k off of trades related to GME and is donating all of it to the Barstool sports charity.

The host had nothing but “I’m worried about the retail investor who loses money”. LOL. Jackass

It’s going to be a crazy week. Not just GME.

The other highly shorted stocks kicked ass today.

Which to me sounds like a horseshit move and someone is buying them off. You can sell your shares but you can no longer purchase any.

Some in Congress are demanding an investigation into this

In comment 15137259 montanagiant said:

Quote:

Which to me sounds like a horseshit move and someone is buying them off. You can sell your shares but you can no longer purchase any. Some in Congress are demanding an investigation into this

There's another active thread on this, but they are now selling people's shares without their explicit consent.