Reddit Trolls Wall St. Hedge Funds, Buying Up GameStop Stock

[dannno]

GameStop (GME) was expected to go bankrupt, so some Wall St. hedge funds (notably Melvin Capital) put down some serious short sells on their stock.

Reddit took notice, and coordinated an attack and have driven the price of Gamestop (GME) up from about $40 a week ago to $209 currently.

Some of the firms, notably Melvin Capital, have doubled down and gone to investors for billions in financial backing to cover their margin calls.

https://www.buzzfeednews.com/article...t-stock-shares

[Brian4Liberty]

Just started following this today. Quite the story. The revenge of Kekistan...

https://paranoidenough.com/2021/01/2...-Gamestop.html

[Gaius Marius]

What I gather from this morning's financial porn is that the Hedge Funds folded on their short positions on Gamestop this morning, so essentially Reddit's WallStreetBets crowd beat the Hedge Funds. Back of the envelope math is that Melvin Capitol took over $3 billion in losses over Monday and Tuesday, which exceeds the infusion of capital they received from two other Hedge Funds.

[Invisible Man]

I wonder at what point short selling now would be a pretty smart move.

[Gaius Marius]

I wonder at what point short selling now would be a pretty smart move.

I forgot who said that the "market can remain irrational longer than the investor can remain solvent," but many smart investors have tried to time the market and failed.

[Invisible Man]

I forgot who said that the "market can remain irrational longer than the investor can remain solvent," but many smart investors have tried to time the market and failed.

That's true. And honestly, it's not for me. But many have also succeeded. And those are sometimes the ones who, often just because they were lucky, get remembered as legendary great investors, and then write books on how they did it that prescribe methods that end up not working when others try them after that.

[osan]

...many smart investors have tried to time the market and failed.

Lessee... large multivariate, quasi-stochastic systems... gee, I wonder why smart people fail to predict their behaviors.

[Krugminator2]

I wonder at what point short selling now would be a pretty smart move.

Melvin Capital was the hedge fund in trouble being short. They covered their position yesterday. Whatever the high of today is will be the high water mark for as long as the company trades publicly going forward.

Not advice because you can lose your ass on these kinds of trades but better than 50-50 it trades below 200 today. At 322 right now. And roughly 100% chance trades down to the mid 100s by close of monday.

Shorting Blackberry which is a sister stock to this move is a lot safer

[Brian4Liberty]

best use i could find to put that laughable stimulus into
...
https://www.twitter.com/ilovecueayy/...65370794860546

Lol. More stimulus!

[Brian4Liberty]

And as could be expected, when the hedge funds lose money, screams of regulation, policing and bailouts start. Shorting and destroying by the establishment hedge funds is perfectly acceptable.

Watch out for silver. Notoriously shorted by the establishment...

[Gaius Marius]

And as could be expected, when the hedge funds lose money, screams of regulation, policing and bailouts start. Shorting and destroying by the establishment hedge funds is perfectly acceptable.

Watch out for silver. Notoriously shorted by the establishment...

The rumors are that the SEC is going to seek criminal charges against Reddit's WallStreetBets crowd. I don't know what basis they could do so unless there were individual members who were using the forum to "pump and dump" their shares in GameStop.

[Brian4Liberty]

The rumors are that the SEC is going to seek criminal charges against Reddit's WallStreetBets crowd. I don't know what basis they could do so unless there were individual members who were using the forum to "pump and dump" their shares in GameStop.

Of course. Go after the Robinhood gamblers who threw in $1000 bucks each. Such big criminals.

Meanwhile the crooks on Wall St can naked short all they want.

[Pauls' Revere]

Of course. Go after the Robinhood gamblers who threw in $1000 bucks each. Such big criminals.

Meanwhile the crooks on Wall St can naked short all they want.

^^^this^^^

I guess the Robinhooders have to bribe the right people.

[wizardwatson]

HankHeIl
@HankHeil
·
18h
The mass elation caused by GamestopGate should seriously concern the elites. Basically everyone under 40 is now oriented toward enjoying any victory over the elites more than any circus the elites can put in front of them.
HankHeIl
@HankHeil
·
18h
Lobbing the Trump grenade into DC was fun. Eventually they shut that down by taking away the ability to participate in elections.

Blowing up a bunch of Cohen's bank accounts is fun. Eventually they will shut this down by taking away the ability to participate in markets.
HankHeIl(wiz: They did this today! Ameritrade has suspended the plebes from trading GME and AMC)
@HankHeil
·
18h
Their problem is that it's impossible to maintain a society that doesn't require the participation of those below them. They can never eliminate every vector the other classes have to strike back against them and now there is sense, albeit small, of class solidarity against them.
HankHeIl
@HankHeil
·
18h
Eventually these sentiments flare up and they overreact in tamping them down over and over again. Eventually everyone is so disenfranchised and disengaged that no one sees inherent value in maintaining systems they have no relation to.

Twitter thread link
(couldn't embed the whole thread or I don't know how)

[CaptUSA]

Their problem is that it's impossible to maintain a society that doesn't require the participation of those below them. They can never eliminate every vector the other classes have to strike back against them and now there is sense, albeit small, of class solidarity against them.

[Brian4Liberty]

What I gather from this morning's financial porn is that the Hedge Funds folded on their short positions on Gamestop this morning, so essentially Reddit's WallStreetBets crowd beat the Hedge Funds. Back of the envelope math is that Melvin Capitol took over $3 billion in losses over Monday and Tuesday, which exceeds the infusion of capital they received from two other Hedge Funds.

Melvin Capital was the hedge fund in trouble being short. They covered their position yesterday. Whatever the high of today is will be the high water mark for as long as the company trades publicly going forward.

Not advice because you can lose your ass on these kinds of trades but better than 50-50 it trades below 200 today. At 322 right now. And roughly 100% chance trades down to the mid 100s by close of monday.

Shorting Blackberry which is a sister stock to this move is a lot safer

The news that the hedge funds fully exited is being called fake on reddit. Who knows?

[Brian4Liberty]

Top 5 richest people:
-Elon Musk
-Jeff Bezos
-Bill Gates
-Bernard Arnault
-Retard6969
...
https://www.twitter.com/richassvc/st...21103003885570

[wizardwatson]

This is a moment. As Syrian Girl said, it's what Occupy Wall Street should have been.

https://twitter.com/itsavibe/status/1354484760115081217

If you don't know, Chamath was one of the original social media whistleblowers who used to work for Facebook.

[Brian4Liberty]

When Hedge Funders and others loot our markets its all good. But when retail investors destroy a hedge fund then all of a sudden CNBC analysts start calling for regulation, blame foreign powers, and talk "fundamentals".
...
https://www.twitter.com/esaagar/stat...61874151190536

https://www.youtube.com/watch?v=9ToOGrUQ7ME

[Krugminator2]

https://www.youtube.com/watch?v=9ToOGrUQ7ME

Watched 1 minute and realized how $#@!ed this country is.

Here is the reality: short sellers lose money on balance. Even the best ones. Even George Soros said he has lost money on balance shorting. They are essential to a properly functioning market. All these buzzwords like banker and hedge fund manager and shorting are just being used for hate the rich nonsense. Not to mention 99.8% of the manipulation in markets is longs pumping up stocks. Like this Gamestop, for instance.

Meanwhile the crooks on Wall St can naked short all they want.

Naked shorting is not something really even exists since 2007. Gamestop, for instance, is easy to borrow. There are very few stocks that don't have shares available to short. There are always brokers willing to lend shares at a price.

[wizardwatson]

Watched 1 minute and realized how $#@!ed this country is.

Here is the reality: short sellers lose money on balance. Even the best ones. Even George Soros said he has lost money on balance shorting. They are essential to a properly functioning market. All these buzzwords like banker and hedge fund manager and shorting are just being used for hate the rich nonsense. Not to mention 99.8% of the manipulation in markets is longs pumping up stocks. Like this Gamestop, for instance.

Naked shorting is not something really even exists since 2007. Gamestop, for instance, is easy to borrow. There are very few stocks that don't have shares available to short. There are always brokers willing to lend shares at a price.

I have not ruled out this is planned.

The origin of the "inside info" so to speak of Gamestop being 140% shorted was convenient. Also, there's people commenting that the million dollar investors in WBS are suspect (Portnoy being one).

It's not outside the possibility-in my mind-of these redditors being the Q-tard equivalents who instead of "storming the capitol" and patsy-ing themselves into P.A.T.R.I.O.T. Act 2.0, end up being the pin that pops the derivatives bubble or perhaps silver/gold (already talk of them moving into silver).

That being said...

It's certainly fun to watch.

We know now that Trump was an absolute NOTHING. Incompetent patsy at best, swamp creature in patriot clothing also a strong possibility.

But boy was it fun watching the other side whine when they lost in 2016 and we savored those liberal tears. Same here.

We think we're winning, but it's really just these Hannibal Lecter globalist nosferatu's feeding our own severed limbs and we savor the aroma.

Worldly take, anyway. Really, I believe this is all the glory of God as Noadic rains slowly begin to cleanse the whitewashed world and we see things as they are.

But I'm just a weird dude on the internetz, what do I know.

[Brian4Liberty]

I have not ruled out this is planned.

The origin of the "inside info" so to speak of Gamestop being 140% shorted was convenient. Also, there's people commenting that the million dollar investors in WBS are suspect (Portnoy being one).
...

It was my impression that it was not inside info. It was just some Reddit guy looking at public statements and doing some math. I could be wrong. I am just catching up on what has happened myself.

[Gaius Marius]

It was my impression that it was not inside info. It was just some Reddit guy looking at public statements and doing some math. I could be wrong. I am just catching up on what has happened myself.

Yeah, there was no trading on insider info. When an investor starts taking positions in a company beyond certain thresholds, then the investor has file certain disclosures with the SEC (usually at the end of the quarter). This is all public information. In fact, other investors sometimes scrutinize the disclosures filed by successful investors like Warren Buffett or Dr. Michael Burry to see what companies they have taken positions in for the purpose deciding whether to invest in those same companies.

[Brian4Liberty]

Watched 1 minute and realized how $#@!ed this country is.

Here is the reality: short sellers lose money on balance. Even the best ones. Even George Soros said he has lost money on balance shorting. They are essential to a properly functioning market. All these buzzwords like banker and hedge fund manager and shorting are just being used for hate the rich nonsense. Not to mention 99.8% of the manipulation in markets is longs pumping up stocks. Like this Gamestop, for instance.
...

If a Hedge fund makes money shorting a stock, where does that money come from? Other investors? If a Hedge fund loses money on short bets, where does that money go?

I would have to assume that other investors make money when the hedge fund loses. Is that a bad thing? Or is it only good when hedge funds make money from other investors?

Naked shorting is not something really even exists since 2007. Gamestop, for instance, is easy to borrow. There are very few stocks that don't have shares available to short. There are always brokers willing to lend shares at a price.

How do we end up with 140% shorting if there are no naked shorts?

Elon Musk and other CEOs have complained about shorting and bear raids on their stock.

People have said that borrowing Gamestop for shorting is pretty difficult right now. I don't short, so I wouldn't know. I came within a hair of buying some AMC yesterday, but there was no value proposition there. It was already at fair value. But I had no idea AMC was going to be the next target of a Bull raid.

Obviously, at some point, someone is going to lose money when a hyper inflated bubble like Gamestop pops. It is gambling, not investing. My impression was that it was a ton of small investors throwing some spare cash into futures. If so they have a chance of a big win, or simply exiting while they are still ahead. Better than buying a Powerball ticket.

[Invisible Man]

So, for all these buyers who are just trying to support a high price for GameStop stock to punish the hedge fund short sellers, what's in it for them financially?

Aren't they now stuck with the choice between selling it before it drops precipitously (leaving the peers who joined them high and dry), or else losing a lot of money, just for the sake of making a statement or punishing a hedge fund?

[Occam's Banana]

So, for all these buyers who are just trying to support a high price for GameStop stock to punish the hedge fund short sellers, what's in it for them financially?

Aren't they now stuck with the choice between selling it before it drops precipitously (leaving the peers who joined them high and dry), or else losing a lot of money, just for the sake of making a statement or punishing a hedge fund?

Subjective value and ordinal preferences are strange and wondrous things ...

[dannno]

https://twitter.com/MarkDice/status/1354526478038253569

[dannno]

So, for all these buyers who are just trying to support a high price for GameStop stock to punish the hedge fund short sellers, what's in it for them financially?

Aren't they now stuck with the choice between selling it before it drops precipitously (leaving the peers who joined them high and dry), or else losing a lot of money, just for the sake of making a statement or punishing a hedge fund?

[tommyrp12]

[tommyrp12]