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

[dayglored]

> ...curb the use of naked shorts...

"Ooooo, kinky!"

[Presbyterian Reporter]

It has been a wild day for GME.

Pre market high was $496

Regular market low was $112

Regular market high was $483

Currently trading at $265-—down $82

[DesertRhino]

As someone pointed out last night, the stolen election introduced law of the jungle. Now we all get to play.

[BenLurkin]

Oops. Guess its been a hectic 13 years for me.

[RummyChick]

GME halted again.

amc getting it’s butt kicked

[Alberta's Child]

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

That's something they should have thought about before setting these markets up in the first place. And I would suggest that chaos under the existing regulations is better than changing the regulations to rig the results in favor of the big-time money people.

There's something deeply satisfying about reading through the various message boards yesterday as this fiasco unfolded. One guy apparently made enough money in a few hours to pay off his entire $43,000 student loan balance in one shot.

The best quote of the day: "Tell the Wolf of Wall Street that the Pigeon of San Francisco is coming to eat his lunch."

[DesertRhino]

Neither is the looting short selling hedge funds. It’s beautiful watching them get annihilated.

[The Louiswu]

"I’ll make this prediction...this will not be the last demonstration of this tactic for 2021."

It might be if Congress, pressured by Wall St gets involved..I see them limiting or even closing retail traders, for the good of the children...

[convoter2016]

The hedge funds should just take the “loss” and target another stock for shorting. They shouldn’t ask for more regulation of stock trading.

[Alberta's Child]

An obvious first step would be to restrict -- or even eliminate -- short trading.

Also, a simple regulation that requires traders to take possession of shares (physically or electronically) would go a long way to minimize this type of idiocy.

[AlmaKing]

Gold and Silver now

https://www.zerohedge.com/markets/reddit-rebellion-about-descend-precious-metals-market

[Alberta's Child]

It’s all fun and games until someone loses their savings.

Have you seen a single story of this happening to anyone?

[BenLurkin]

I never understood why shortselling is legal, but have been told there is some market friendly reason for it.

[Alberta's Child]

Great point.

If someone in Philadelphia or Atlanta can "vote" by mail without providing a single shred of evidence that he is legally eligible to vote, then I can buy and sell securities online however I damn well please.

[montag813]

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

Some of them are getting killed though. GME went to 520 pre-market and just hit 120 (!) an hour ago. I hope these kids didn't trade with margin.

I had my fun but got out fast:

AMC
Bought 5.07. Sold 20.20, 24.91 (now 9.59)

KOSS
Bought 12, 14.50. Sold 36, 50.25 (went to 140, now 37)

[hercuroc]

I read a lot of the contracts for the hedgers ends tomorrow for GME so they are going to fight like hell to depress the price.

[Political Junkie Too]

Akin to teens ransacking a shopping mall.

Except that they didn't steal the stocks, they bought them fair and square.

It's more like they Cloward-Pivened the stock. They bought them so fast that they overwhelmed the system and jacked up the price (due to demand) too fast for the hedge fund managers to respond.

-PJ

[montag813]

DOGE (literally Dog Coin!) was also fun this morning. Bought $0.01477, sold $0.02401, insane quick profit, but stupid Robinhood could not put through my sales at higher prices.

[The Louiswu]

" this type of idiocy. "

This isn't idiocy, this is AMERICA! Why should hedge fund creeps get to manipulate the market and the small retail investor get the shaft when they start making real moves? This is REAL capitalism at it's finest, people putting their money where their mouths are and taking a stand, it's only the manipulation, stopping stock purchases, fake technical difficulties that are causing trouble.

[DesertRhino]

They claim they make poorly run companies show better discipline etc. That they are like predators only going after the sick and weak.

But they forget to point out, when they short, they call their biddies at the IRS, FBI, SEC, at the WSJ and NYT, etc etc. They make accusations of product problems, poor management, accuse various illegalities, trying to get investigations started, etc.

They bet the stock will go down, then use politics to drive it down.

See also, “Mitt Romney”.