...................

using reddit's "Wall St. bets" they ganged up and pumped up the stock Gamestop

hedge funds had shorted Gamestop
it went up so much the funds' short positions are now threatened

fun to read article:


https://www.nytimes.com/2021/01/27/b...gtype=Homepage

idk how in 2021 the media narrative is that anyone on the internet is a "troll" "loser" "nerd" lol not sure if this is on purpose or not

painting people that find a market error in such a way seems weird

it's like they think this situation is a bug of the system that needs to be fixed rather than how it is supposed to work

I think the narrative that the little guy has beat Wall St at its own game is sort of an exaggeration. Big institutional investors monitor these boards and are likely driving up the prices. Some little YOLO investors will probably end up being the bagholders, same as it ever was. It's a fun story to watch though, I thought GME would have sold off by now, still spiking.

Huh?

50% of all robinhood users have a part on gme

They also closed of access to the stock recently lol

You can only sell at this stage

This is getting more disgusting as this goes on

I'm guessing Wall Street on the whole won way more on this than retail. Nothing stopping a big institution from riding the wave.

Big companies (which includes media networks...and of course many politicians) have loads of money in hedge funds. If their hedge fund goes tits up they won't be happy.

So expect massive slander campaigns from media and politicians.

Robinhood just passes your order through to another company (which makes money on the time lag between you placing your order and them actually placing it). Essentially also a hedge fund. So Robinhood and their backer are in the process of being wiped out by this, too (which explains the 'only allowed to sell' tactic)

As someone so succintly put it: "To Robinhood you are not the customer. You are the product"

https://www.marketwatch.com/story/la...ake-2021-01-28

they were not the only fund selling a huge stake

So I watched some interviews last night and RobinHood CEO seemed full of it on Cuomo.
Kept saying we had to to protect us from regulatory issues.
Also another interview said they were selling all the data from their investors.
REddit shut down those chat groups as did Facebook was reported also. Not on reddit so no clue

Curious if we see any investigations?

Agree with this. I think some of the unsophisticated buyers will probably hold on too long think this could go to $500-1000 when it’s not worth even $50
Honestly.

Btw, is this a slam dunk short right now? $300 a share for GameStop? lol sure it could still go up but to be honest, there is no way this doesn’t **** the bed in the coming months and drops heavily.

He didn't say he wanted to protect you. He said he wanted to protect the users. You are not the user. You are the product. The user are the ones that profit off of your order flow (i.e. Citadel et. al)
Profit is not the point. They aren't selling. That's the point. That people could just invest some money like a ticket for a show and then just look at it as a loss and keep it uintil the end of time..well..people who are into money will never understand this.
Don't be so sure. Since if no one wants to sell you're just paying the surcharge for a short and not making any money until your need to pay up.

So how does shutting down buying protect the Users? Unless your referring to the Hedge fund that invested in Robin Hood

Janet Yellen paid by hedge fund

https://www.youtube.com/watch?v=eY85f9V6ySM

Yes. They are protecting their user (i.e. Citadel..and by extension Melvin capital because Melvin Capital got a couple billion from Citadel to...you guessed it...short GME even more *facepalm* )

If they only allow you to sell then the stock can only go down. Which is market manipulation - and a couple lawsuits to that effect have already been filed against RobinHood, I understand.

I'm just gonna leave this here for anyone yelling incoherently about market manipulation and hedge funds and protecting Citadel: https://www.bloomberg.com/opinion/ar...es-of-gamestop

This is not David vs. Goliath. It may have started that way but once the ball got rolling lots of big and sophisticated money got involved. There is just too much volume and money moving around to be attributed to a bunch of odd lot robinhood traders. There are big money predator funds and players running this show now. All of these HODL WSB guys will eventually be destroyed just like the over leveraged short hedge fund guys already have been.

Difference is: To the WSB guys losing their money doesn't matter. If they go to zero it's not a 'loss'
They bought a ticket to a show and got their money's worth.

How do they only notice this now thou?

It should be pretty obvious if 50% of your action only comes from one place...

if they were worried about risk this would have set off alarm bells a very long time ago

But how much buying power do they have left? I am guessing it is spent. So they can take a huge profit or hold but I don't believe they have have the dough to keep it propped up. It's the big money that has to keep the squeeze on. The WSB guys are hoping the predators keep squeezing but those predators will get out much better than the reddit bros. They may have a ticket to a show they started but they are idiots if they give all the money the real predators gave them back. The true morons (not predators) who are buying at $300+ will be the bag holders along with anyone stupid enough to take a round trip. The real predators already have a plan and will likely execute it flawlessly.

Since more than 100% is shorted - how much buying power do they need? If they're not selling this thing is going to be a short squeeze of epic proportions.

You mean as flawlessly as they got themselves in this bind?

They've tried a lot of stuff already that reeks of desperation
- painting WSB as 'hackers'
- paintening them as 'alt right'
- getting Cramer to show up and say "you have won, now take your ball and go home"
- tiny trading amongst themselves to make it look like people are selling
- blocking buys (or severely limiting buys) but allowing sales on a number of platforms
- planting shills on newsgroups
- getting discord to shut down investment groups

Does all of this look like people with a 'flawless plan that merely needs to be executed at a stock level' to you?

Doesn't to me.

You are confusing the overleveraged shorts who are already screwed versus the real big money doing the real screwing. There are very big players who saw blood in the water and pounced. These are the guys that have their teeth on the jugular and they will get a very clean kill. The reddit bros will high five that they took down a hedge fund but a different hedge fund will reap all of the rewards.

What if the WSB guys just take their shares and let em gather dust in the attic?

Remember: The investment (or any possible gains thereof) means nothing to them. They might cash out a tiny percentage to cover their initial investment and keep the rest forever.

Then what? How exactly are these bigger pros going to make money?

By shorting? The short percentage is public. If the 'pros' keep shorting it will keep on being above 100% and the squeeze will be even worse for them.

The only incentive for WSB to cash out is if either the shorts give up and cover their positions and the short percentage drops to 'normal' levels or if the price goes insanely high.

In any case: it's fun to watch. The 99% helping each other while the 1% are just looking on and hoping that a few of their own numbers will be taken out.

Even if some of the 1%ers make some money in the process: They'll not try a similar stunt overplaying their short positions again, that's for sure.
(You'd think they'd have learned it after their debacle with Tesla)

Do you think pros aren't on the Long side?

With everything from fake news articles ("Melvin have closed their position"...why would they announce this on national TV? Makes zero sense) to outright manipulation of buying platfoms being thrown at the retail investors to make them sell?

Being 'long' as a pro in this scenario would be the dumbest thing, ever.
WSB could lose interest or shift over to another meme stock in an instant.

But we'll see. As long as Melvin (and potentially Citadel/RH along with it) goes bust and Wallstreet as a whole learns not to be this stupid greedy again - it's a win for WSB.

The two sides are playing by entirely different win criteria.

Eventually price will return to value. What is the real value of GME? I am doubting it is $300+ per share. But it is probably more than the shorters thought. It was heavily shorted for a reason. Retail (uhg!), mall based retail? (double uhg!). Too bad Blockbuster and Radio Shack aren't still around because they would be flying high right now too. Doesn't mean they are worth a damn. The squeeze can only last so long. When money stops propping it up and all the shorts are dust it falls. And the predator class won't be left holding the bag.

I do agree that over aggressive shorting is dead. At least until next time Isn't the first time a hedge fund got raped and won't be the last because GREED! From now on they will be looking over their shoulders. But new strategies will evolve to crush guys that that make a play at them and you can be sure of that.

Yeah, curious to see where shorting goes from here. Citron Research announced it's done with it (or at least publicizing their shorting- which seemed to be its whole game), and I'm not surprised in the slightest as it seems obvious that reddit was going to pounce on anything they tried to short going forward for quite some time.

On top of that: brick & mortar during a pandemic? Triple ugh.

I've been browsing the past few hours on reddit and no one is talking fundamentals of GME. Not a single one. The value of the company really plays no part in this (and it will be no better off afterwards...other than some of the founders can probably make some bank on their remaining stocks...something they were probably never hoping to do again)

Agreed. But this isn't about taking down the whole system. This is about demonstrating that - on a level playing field - the rich can't do whatever they want without getting some pushback...even when they pull out all the dirty tricks.

That would be a great outcome. These types of shorts have needlessly destroyed a lot of promising companies and driven countless people into poverty.
I remember when the shorts waged war on Tesla (they still kinda do...but that ship has probably sailed)
...and what kind of world would we be in where Tesla (and by extension SpaceX) hadn't survived? One that is a lot more boring (no pun intended), that's for sure.

(Whether GME needs to survive for a cool world is debatable)

Absolutely. But don't underestimate a lot of people with a lot of spare timeon their hands (and some with a pretty good brains, too. They call themselves affectionately "******s" ...that alone should tell you that they are anything but).
Particularly now that they have seen what they can (hopefully) achieve.

I think they have a decent chance to rise to the challenge. And remember. There's people like the (what is he currently? Third richest? Second richest) guy in the world who are sympathetic.