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:

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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:

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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:

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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:

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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.