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/amberjamieson/gamestop-reddit-stock-shares

 

[Brian4Liberty]

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

https://paranoidenough.com/2021/01/25/The-Battle-of-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.

 

[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]

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.

 

[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.

 

[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.

 

[wizardwatson]

HankHeIl
[MENTION=5690]Hank[/MENTION]Heil
·
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
[MENTION=5690]Hank[/MENTION]Heil
·
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)
[MENTION=5690]Hank[/MENTION]Heil
·
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
[MENTION=5690]Hank[/MENTION]Heil
·
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)

 

[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]

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.

 

[Brian4Liberty]

best use i could find to put that laughable stimulus into
...
https://www.twitter.com/ilovecueayy/status/1354265370794860546

Lol. More stimulus!

 

[Brian4Liberty]

Top 5 richest people:
-Elon Musk
-Jeff Bezos
-Bill Gates
-Bernard Arnault
-Retard6969
...
https://www.twitter.com/richassvc/status/1354421103003885570

 

[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.

 

[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]

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]

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/status/1354461874151190536

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

 

[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?

 

[tommyrp12]

 

[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 ...