Posted on 01/27/2021 3:30:32 PM PST by TigerClaws
Yes, a lot of it was that. It’s called a “short squeeze” and either they got scared out of their shorts, or were forced to liquidate by their brokers due to lack of credit at whatever market price at that time. The risk of shorting a stock vs going long is there is unlimited downside. If you bought stock, or even options, the most you can lose is what you put in. If you short a stock, or short an option (call or put) you can get crushed in these types of situations. Short at $20 and wake up to see the stock at $380, you just lost $360 and if you don’t have $360 in credit/equity for every share you are short the broker can force you to liquidate. Some people got screwed. Some got rich. All in 24 hours. One big short had to borrow billions from Citadel to avoid being liquidated. It will probably pay off, or at least come back around to something a bit more reasonable - and cheaper to borrow the money to hang on a few weeks than to liquidate and close up shop. Citadel knows all this which is probably why they agreed to lend the money.
Stock shorting isnt like commodities. No contract expiration. Essentially you have to “borrow” the stock from your brokerage to sell it. Margin calls are what expire the “contract.” Get upside down and you have to pony up bucks. The beauty of what these “gamers” have done is buy the stock with explicit instructions not to “lend” their stock to anyone essentially drying up supply and forcing the prices up for those that need to cover. It has been a beaut to watch. Big money emperors humbled by billions in losses when they were trying to tank Gamestop and pick the pockets of existing investors. The fact that investment media has lost their s#&t over this should tell you a lot. It is a continuation of the sheer corruption of media where the political media are all in the dims pockets, the financial media are all in these big money Wall Streeters pockets. You then extend your horizon a bit and see the exchanges and regulators and politicians are in these scum bags pockets too. God forbid the little guy on main street beats the big guy on Wall Street.
Pandemonium. Dogs sleeping with cats. Trans in the military and womens sports!
The techlogarchy has spoken.
What is Discord? Do they run reddit?
I don’t quite understand all this. There have been filters around for well over a decade that will take a bad word and change it. So if you want to drop an F bomb or a racial slur, the website will either put **** in its place or even substitute it to a different word.
Should be easy to fix. Of course, libertarian minded people would say if you don’t like it, block it or don’t use it. But we’ve driven past that signpost up ahead a while ago...
Some of those people on Reddit will wake up to an FBI raid, you can bet on it. I don’t think they did anything that all the big market players don’t do themselves, but these are small investors so they’ll get the Roger Stone treatment for conspiracy to commit securities fraud or something like that.
This is a bit long, but stay with me.
I learned much from my grandfather. He had an eighth grade education, but played in farm commodities all his life.
He beat in to me “Always cover your inputs. Make enough to live. Never get greedy. Always, always, remember the game is rigged by the big boy.”
He was the last generation to be taught that usury was a sin as bad as sodomy. The last to be taught that the stock market and such was at best sinful.
We saw a neighbor do what this hedge fund did with commodities. Worked for a while, till he ended up short a few thousand bushels and no way to pay for it. Blew his head off rather than face it. Grandpa pounded it in to me “That is the wages of sin”.
The market was always fixed. Do you really think the 401K racket was for your benefit? It was guaranteed money to the fund managers. You don’t own the stock, the fund does. They just used your money to pay for it.
But these cats have been drinking the milk for a long, long time. Raping and pillaging their way across the land, until they went after one of last refuges of the people they destroyed. People who have spent years of their life playing games on computers, making mods, and pattern recognition. People with little to lose but a lot of anger.
Now those people are trying to burn those cats. I have no doubt that by this time next week many of the Reddit boys (and I am willing to bet they are all boys) will be arrested, destroyed, and erased. All those short contracts will be declared invalid because of some sort of -ism, and a lot of threats will be made to try to put the genie back in the bottle while insuring the fat cats keep getting their milk. The law hasn’t mattered since last March, and won’t for a few decades. They want their milk
But in the end, it is like that farmer in my home town. At some point, it is you and a shotgun facing eternity. The god of the copybook headings comes knocking and then everyone see just how much you were faking.
Thanx. Just saw an article where WSB got cancelled.
Too bad. That had some funny stuff
well..it is getting more interesting
Dave Portnoy ..who is a real piece of work..is willing to help them
https://twitter.com/AltitudeChaz/status/1354592359565021184/photo/1
Crazy out there.
Some whales are donating their GME gains to bar stool
Gotta protect their corporate masters.
It wouldn’t surprise one bit.
It’s ok for these hedge-fund-vultures to rape, plunder and pillage everything they can and play the game to their benefit. The flip side is that we can’t have a bunch of “autists” from Reddit get a one up on these fat cats by winning the game.
then its a win for Dave. He is very anti-suit (corporate)
>Like what?
I’m taking a wild guess...derogatory slurs against Jews
As they say, "bulls make money, bears make money, but pigs get slaughtered!"
Are you saying it is time to sell short?
it came back...I was on after
you can still buy the stock and sell...you are limited in options
everyone expected it. We have all been warned it would happen and it has every night and then next morning we all pour back in. AT this point many look at it as a statement ... many have bought just 1 or 2 shares. We were trying to make a point.
You are thinking like an investor, which is good and smart, not like a speculator in the middle of a short squeeze.
Nobody is looking at value. This situation is like being in a card game where you started with 100 dollars, you are up to 1000 dollars, and then you lose a couple of hands and are down to 800 dollars.
Except in the card game the other side is basically in the same situation you are. In this case the hedge fund with short positions are facing a much larger risk.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.