This whole story is wrong. Redit and Robinhood don’t have enough money behind them to cause this situation. There is a much bigger player in the market. Someone like China, could be attacking our market and our short sellers by coordinating an attack on a few stocks. You need Billions of dollars to cause this situation. If ten thousand little guys throw a thousand dollars at this, they don’t make a dent. Trust me, there has to be a large player here. And the feds can figure out who that player is.
Or maybe it really is a case of the hobbits ( remember that term?) having figured out how to game the Orc’s own game, so now Stzrok’s wife, Sauron , newly appointed dark lord of the SEC, is striking back.
While there are lots of little guys throwing a few thousand around there were a lot of big daytraders in there. One guy threw in $200k to buy about about 28,000 shares at $7 a piece.
While I doubt they could have held the line originally the press hype made the whole thing snowball and got everybody in (including Elon Musk and Mark Cuban who are throwing in a few millions for the lol’s)
And this is ultimately the hedge fund’s fault as they had sell contracts for something like 130% of the AVAILABLE SHARES! That meant they planned on churning the stock which made it easier for the Reddit WSB guys to corner the market and setup a mini monopoly.
Mets owner, Steve Cohen maybe
Mets owner, Steve Cohen maybe
WallStreetBets apparently has several million subscribers, each with an average account value of $5000. That’s several times $5 billion in account value.
reminds me of late 2008 (maybe 2009?) when there were huge swings in stock market - many thought it was Soros showing what he could do if “they” didn’t behave.
And as a former Trader, small time, I can guarantee, no Billionaires will be punished. Short Squeeze, the little guys made some money. That is great!
10 to 1 leveraging in the options market. Wasnt China or Russia or the Boogyman or any other fantasy bad guy. These hedgefund ass#0les sold short 140% of the outstanding stock of gamestonk. They sold short 40% more than there are stocks in existence. The Redditeers bought stock and told their brokers “You can not use these shares to cover (lend) to anyone to short the stock” 140 friggin % !!!!!!!!!! There are not enough shares in this or any other universe to cover the shorts. The hedgefunds were circling for the kill and a smarter faster leaner and meaner predator came on the scene and gutted the funds. The crap the funds are pulling via regulators and brokerages are crimes of fraud and theft. Fair and efficient market, my ass.
unless it’s them
Your take is much different that everyone other one I have seen. What are you basing it on. My understanding is that it does not take as much money to wreak havoc on a short sale as it does to cover a short sale. I’m not expert in this. Happy to have your reply.
Stuff it troll-boi.
The issue with GameStop is that the number of shares shorted was 140% of the shares available to buy or sell.
Naked shorting is illegal; and it is a slam-dunk for a short squeeze.
The other issue, is that the stock was selling for, what, around $5/share, six months ago, to the low teens in mid-December.
Anyone attempting to short, with a price per share at $14/share, is looking at a 2500% loss of their original money.
Now multiply that by the number of shares outstanding...