Hedge fund Melvin Capital closes out GameStop short: CNBC (Gamers: 1; Wall Street: 0)

Market Watch ^

[1of10]

Your twitter post got me looking into this. It is fascinating. If what I read is true there was a 140% short position against gamestop, which means in some way there is naked shorting going on. Naked shorting is supposedly illegal. It is interesting that the gaming community say an “exploit” and ran with it and literally made Melvin capital burn to the ground with all the naked shorts they had. This is big.

They covered at 90 , they won't take the biggest hit.
I want to see how these attack dogs unwind their positions without taking out half of their friends.
And no they didn't need to "naked" short
If I have in the money calls I can short anything over strike.
NOT naked , more like scantily clad.

[TigerClaws]

Me either (and — DISCLOSURE — I don’t buy or sell stock).

Here’s a gamer guy (some NSFW language) explaining what’s up with GameStop:

https://www.youtube.com/watch?fbclid=IwAR0JyfLBez_sIenQrowhK2IfPWOnErl7eokpnsvfFt4sBIbh2_uPhdJm1lc&v=letnUP22clo&feature=youtu.be

Apparently, they’re going to target other short positions to F over hedge funds from the chatter I’m seeing.

[nuconvert]

The SEC is going to get involved in this

[MNlurker]

It interesting to watch. Redditors saying CNBC is complicit in lie with Melvin. This CNBC/citron shit is a complete lie. I just signed up for the Ortex trial and pulled the latest data. SI & Float still 96%, how could they possibly cover in after hours trading without triggering a spike of enormous proportions? Please share because I'm unable to post a full post and the screenshots I've seen so far are not as clear: https://imgur.com/a/Vqc15t1 Image clearly shows Free Float % at 96% as of Jan 26, 2021. Looking at the volume, and the cost to borrow being so high, does not seem real to me. The covers between Jan 25 & 26 are 8% drop in SI % FF with a volume of 180Mn shares, you're telling me even if they only had 25% (3x that) that they could accomplish this with all the euphoric buying and still keep volume down to 170Mn as reported yesterday? We're at SI % levels seen in September, same as they were midway through their doubling down on this insane short play. Really smells like some seriously sketchy coordinated FUD from CNBC & Citron.

[redgolum]

On what side?

Honestly curious. Thought naked shorts were not allowed, but I don’t play in that field.

[1of10]

. Thought naked shorts were not allowed,

If I own in the money calls I can short anything over strike,don't have to own the stock because I have the right to buy at a fixed price.
I want to see how these guys unwind their positions without crashing half their friends.
It looks like Elon Musk could hold the price while everyone gets out but he would take the hit.
Will he?
One thing for sure , this marks a historic point in the system, and I'm glad I'm just watching.

[nuconvert]

“On what side?”

Maybe regulations on both.

“I don’t play in that field.”

I don’t either. I like trading stocks but most are for the long haul.

[riverdawg]

As I understand it, naked short-selling is not, per se, illegal. What is illegal is what the SEC calls “abusive naked short selling,” in which (a) short sellers sell shares they have not borrowed, *and* (b) are unable to deliver those shares on the settlement date of their sale.

Please correct me if I am wrong.

[NohSpinZone]

Isn’t “naked shorts” an oxymoron? ;-)

[TigerClaws]

They are targeting short sellers of multiple stocks.

Hoping Reddit gets sued for a billion or two. Makes it a double win.

[Amberdawn]

We need to learn how to crash those companies that target Conservatives.

[Amberdawn]

Indeed, and Apple, and Amazon, and Twitler and Goolag....

[LS]

This was amazing! After I posted, the stock went to $132!!

HA! From $20 where they were shorting it. Shades of Jim Fisk and Jay Gould.

BTW, my Wild Wednesday Webcast tonight is “Third Parties in American History” Free, but register
9:00 EST: https://us02web.zoom.us/meeting/register/tZMvfuutpzwqGd3LYdvDcda4x8qFmZxEUsQo