The GameStop Hedge Fund fiasco, explained. No, this isn’t a bad thing. Some are trying to position the GameStop populist uprising as something bad, even a "Ponzi Scheme." It's not.

NOQ Report ^ | 01/28/2021 | Carl Durrek

[PapaBear3625]

The Hedge Funds are in trouble. Not just a little financial trouble, but a lot of legal trouble.

What triggered the buying of Gamestop was people on Reddit noticing that short sellers had sold 140% of the actual amount of Gamestop stock. The hedge funds not only sold stock they didn't have (Naked Short Selling, which is illegal, at least when mere mortals do it), but 40% more than exists.

This is why many brokerage houses have halted retail investers ability to buy Gamestop

Much of the volume of Gamestop trading involves stocks which do not actually exist. The trades cannot be cleared. The trades cannot be settled by the clearing firms..

And once this becomes painfully obvious to the general public, too many uncomfortable questions are going to be asked.

[trashiscash]

Reminds me of the movie Trading Places.At the end the stock market guy says “Margin call gentleman” One of the Duke brothers says “You know perfectly well we don’t have $350,000,000 in cash” and they lose everything.Love seeing these wall street billionaires take one across the chops.

[The Louiswu]

amen to that!

[Varsity Flight]

Knew it knew it would come of this....

TRADING COLLAR garbage.

Totally rigged again.

[SamAdams76]

these guys are holding firm...they will not sell...now its going global, LTFO...

If I understand correctly, if the Reddit buyers all stick together and refuse to sell, the hedge fund guys are screwed as they need to return all those shares they "borrowed" or face a margin call - which they evidently cannot afford.

[FreeReign]

Chaos in the equity markets isnt a good thing for anyone..

You mean shorting?

[RinaseaofDs]

Hedge fund tries to off Gamestop by borrowing 140% of GME shares and driving down the price so that they can rebuy it again.

People who like GME think this sux, like my kid and me, so they bid it up.

Hedge funds don’t have the stock and have to buy the stock to cover. Right now, they are LITERALLY on their knees begging the very company they tried to scuttle for an opportunity to buy shares at something less than $350.

I say let the shorts burn. Sink them. One fund was stupid enough to lend another firm money to keep going.

And like clockwork, the folks rigging the game are doing what they can to make the field uneven again for the big players.

[dfwgator]

I’m sure the Deep State uses these Hedge Funds as a means to take out any company they want to.

They won’t give that up.

[rolling_stone]

anyone remember the silver runnup and collapse when Hunt brothers tried to corner the silver market in 1980

https://en.wikipedia.org/wiki/Silver_Thursday

[FreeReign]

There is absolutely NO REASON to own AMC. Nobody is going to movies or theaters any longer so any run-up in prices for a day or two already is a signal that some hanky panky is going on.

Free market hanky pinky, what's the problem?

[The Louiswu]

https://youtu.be/t95Hxz6xioQ

good vid

[free_life]

Time for the Wallstreet brand of popcorn to hit the market 😀

[basalt]

thing is, its not just Reddit guys anymore..its spreading like wild fire, and some big hitters are throwing in... they dont know how to stop it...over seas markets too....

[Political Junkie Too]

I'd think they are only in legal trouble if the Biden DoJ chooses to prosecute them.

-PJ

[basalt]

this is gettin good..Citadel was getting torched so bad, they “ordered” Robinhood to halt buying...flat our said “we can fight lawsuits better than fighting this...UNREAL!!!...JUST WOW..

[BiteYourSelf]

This ,plus poverty, is why I don’t mess with stocks.😝

[tbw2]

While no one complains about Tesla stock going up right before Democrats essentially mandating electric cars ...

[BiteYourSelf]

I like short shorts; the purple people eater.😏

[redgolum]

GME can clear it. Issue more stock at the shorted price tomorrow.

I suspect there are a lot of calls going on demanding they do just that

[basalt]

Steve Cohen, owner of the NY Mets is going after Dave Portnoy online right now...Portnoy accused Cohen of being behind all this...Cohen is a big time hedgie...THIS IS GETTIN GOOD!!!