Posted on 02/02/2021 11:02:31 AM PST by nickcarraway
Outspoken social media personality Dave Portnoy tweeted Tuesday that he has sold his shares in companies GameStop and AMC at a major loss, blaming trading app Robinhood for killing the so-called “Reddit Rally” that he joined and helped promote in recent weeks.
“I have officially sold all my meme stocks. I lost 700k ish,” Portnoy tweeted before taking a personal shot at the CEO of Robinhood. “Vlad and company stole it from me and should be in jail.”
Portnoy’s selling comes as the manic trading blitz that sent cheap stocks to outrageous new heights — fueled by retail traders using Reddit and Robinhood — hits shakey ground. GameStop shares are down more 50 percent Tuesday. The price of silver has also retreated Tuesday and theater chain AMC’s shares are down more than 40 percent.
(Excerpt) Read more at nypost.com ...
Whatever happened to the Plunge Protection Team?
So much for diamond hands.
perp turns victim. What a joke.
But Dave will be fine.
I’m going to end up drinking cheap beer the rest of my life. It’s going to be a dark winter just like Biden said.
Sounds like he got greedy
I am paraphrasing an old saying: “when you set out for revenge, dig two graves.”
Someone wins, someone losses.
Poor baby.
Economic kamikrazies (sic) crash and burn? No surprise, but they did do some damage to bystanders.
Better than paying taxes that would be used for socialism.
LIES.
Article says he OWNED stock. If he did, he would have made money.
He must have owned shorts.
No sympathy.
He traded in a fast, irrational market. When some markets are out of control, you have to just away from the gaming table. If you don't, there are consequences.
I traded the markets heavily last spring. Before every trade I would consider "If they shut down the exchange (there was talk of that) for a week, will I get killed, i.e what happens if the market opens a week later up 2000 points and I am short. Am I hedged for that?
Isnt what Dave Portnoy did illegal? Like a corporate raider that gets on the board of a valuable/prosperous publicly held company and then ruins the company?
What did Martha Stewart do that caused her jail time compared to what these Dave Portnoy types do all the time?
Picking a company they don’t like, shorting the stock, ruining the company and making billions. WTH?
Wasn't possible in these cases, or at least in GME and maybe AMC. The short interest was already well over 100%. The market makers were on the precipice of being in violation of short selling regulations, and the banking desks were more concerned that their short clients were able to raise the collateral to hold their short positions (one short seller had to borrow $2 billion in cash from Citadel). The Market Makers would have had to naked short even more than they already had to create stability and liquidity, and they were already on the very far wrong side of the trade. That is what made these few stocks that went wild such good marks for the flash mob. The short interest by both the funds, and the market makers who provide liquidity via naked shorting, was already maxed out.
But Portnoy is, imo, too smart to have chased these issues late in the game. I think he booked these losses so he can join in various class action lawsuits against Robinhood et al. There is another game that will play out over the next few years to expose the methods by which the Market Maker exemptions are exploited by hedge funds to inflate the numbers of shares and deflate their price. Sort of a self-fulfilling prophecy if you can artificially increase the supply of a stock it ordinarily will go down - unless of course the demand suddenly spikes. It was profitable for HFs for a long time - until it wasn't.
Patrick Byrne, Founder of Overstock, which itself was heavily shorted 10-15 years ago, tried to expose it but only got a small audience given the technology available at the time. He produced a very good video though explaining the mechanisms and it may still be out there or on his website Deep Capture.
Usually, once a big trading event is all over the news, it is time to exit ....
GME is at 108 right now, still way above the ~$4 price when the short squeeze was noticed by WallStreetBets.
Sorry that Dave bought GME when it was near the top, but you can’t chase a trend.
This guy’s account size was way,way over his trading ability and experience.
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