General Why aren't you dorks talking about gamestonk hilarity?

[Deleted member 1]

@Hauler Correct me if I'm wrong on anything


Alright, so here goes:
Game stop is a dying business. Downloaded games etc gonna wreck it. It's dying and nearly dead.
Big hedgefunds bet that its dead. They are shorting the stock which requires borrowing shares at a future expected price (down) to make profit.

Reddit idiots get together, and largely using Robinhood (stock app), buy the shit out of game stop in unison. The stock shoots up as they all buy and run the price up.

Uh oh, hedge fund is betting the stock is going down. It's shooting the moon. wtf?
Hedgefund can take the L and lose money (rule #1 don't lose money!) or they can pull more bets that the future price is gonna crash. But that requires them borrowing shares (more demand!) the stock price goes higher! Reddit idiots buy more!

If you are a reddit idiot you pay 5 bucks to get game stop and it goes to 100. You sell it off and you might start a run on the stock. Next guy out and the next and the next. The hedgefund makes money as the price collapsed. But maybe you are driving by something bigger? Meme life. So you want to see the hedgefund lose.


So you don't sell for a profit and instead just keep buying!


Yes some are making 4 milion dollars in a day and holding! Buying more! And because of the feedback loop (idiots knowing it'll go up more tomorrow while loving the excitement of challenging the hedgefunds bets all while the hedgefund keeps taking bigger bets assumign they have more cash than the idiots) the price keeps shooting up!



Highest traded stock on the market.



So what happens if the fund runs out of money to keep making new bets to cover the old bets, hoping they can outlast the idiot money???


Well they fold from no liquid cash like Melvin Capital did today...

Citadel, Point72 Back Melvin With $2.75 Billion After Losses

(Bloomberg) -- Hedge fund titans Ken Griffin and Steve Cohen boosted Gabe Plotkin’s Melvin Capital, injecting a total of $2.75 billion into the firm after it lost about 30% this year.Citadel funds and firm partners will invest $2 billion, while Point72 Asset Management’s investment will be $750...

finance.yahoo.com

 

[Deleted member 1]

Now here's whats interesting and why the stock market sucks.
Citadel bailed out Melvin Capital.

Melvin Capital gets an influx of cash assuming the stock WILL crash. Now reddit has to get enough idiots to buy more to keep the price going up because melvin has cash for more bets against them. One side will eventually blink and of course it'll be the distributed idiots...but maybe not before wrecking some more hedgefunds.

So who bailed them out?
Citadel.

What does citadel do?

Robinhood makes millions selling your stock trades ... is that so wrong?

Don't scoff at PFOF - selling your stock orders is how Robinhood and other no-fee stock trading apps make most of their money.

fortune.com

Zero-fee trading helps Citadel Securities cash in on retail boom

Higher volumes and wider spreads have driven outsized returns for market makers

www.ft.com

Citadel pays robinhood app to see what trades users are making. They see those orders BEFORE the orders are filled. The citadel computers then can buy those trades IN FRONT of the robin users.


Reddit ran the stock up. Citadel pays to see it coming. Citadel makes stock trades based on that. Citadel makes bank. Using bank to buy out hedgefund destroyed by reddit running the stock up.

 

[SongExotic2]

It's evolution baby

 

[Deleted member 1]

Melvin Capital, to file bankruptcy as soon as next week according to sources. The bailout they received yesterday from Citadel and Point72 went “poof” today as the GameStop ( $GME ) momentum continued. The fund was forced to liquidate its Alibaba ( $BABA ) position after hours.



!!!!


2.5billion in funding and the idiots sucked it up in a day.

 

[SongExotic2]

I don't understand any of this. So it was fucked and loads of people purchased stocks while it was down? And that drive up prices but it's fucked again?

 

[Deleted member 1]

So it was fucked and loads of people purchased stocks while it was down? And that drive up prices

Yes. But it's basically the hedgefunds betting against the internet crowd and the first once that gives up throwing more cash in the pool will lose. The one that is willing to throw the largest amount of money at this will bleed the other dry which will then remove demand and crash the stock again.

Stock is artificially run up and the hedgefunds are stuck holding the bag. They have to get in deeper and deeper to not lose and one hedgefund is already bankrupt from trying to keep up.

 

[SongExotic2]

Yes. But it's basically the hedgefunds betting against the internet crowd and the first once that gives up throwing more cash in the pool will lose. The one that is willing to throw the largest amount of money at this will bleed the other dry which will then remove demand and crash the stock again.

Stock is artificially run up and the hedgefunds are stuck holding the bag. They have to get in deeper and deeper to not lose and one hedgefund is already bankrupt from trying to keep up.

I don't get it

 

[Deleted member 1]

first once that gives up throwing more cash in the pool will lose

 

[jason73]

And meanwhile gamestop as a company is worthless.

 

[Deleted member 1]

And meanwhile gamestop as a company is worthless.

Part of reddit nihilism on this is that the entire market decoupled from value a long time ago and runs on hype/manipulation.

So fuck it. Burn it down.

 

[RaginCajun]

Part of reddit nihilism on this is that the entire market decoupled from value a long time ago and runs on hype/manipulation.

So fuck it. Burn it down.

There not completely wrong. That's why everytime Elon Musk makes are a strange tweet the stocks are affected no matter what the actual companies are doing.

 

[Rambo John J]

What is Endgame

 

[kneeblock]

I've been following this all day and am hoping it inspires new takes on a kind of activist investing.

Some Facebook millionaire just got in on the action and says he'll cover the "idiots" bets.

This all makes me think of Matt from Gamestop and a thread from long long ago.

 

[ShatsBassoon]

Lost at their own game

 

[Enock-O-Lypse Now!]

Melvin Capital, to file bankruptcy as soon as next week according to sources. The bailout they received yesterday from Citadel and Point72 went “poof” today as the GameStop ( $GME ) momentum continued. The fund was forced to liquidate its Alibaba ( $BABA ) position after hours.



!!!!


2.5billion in funding and the idiots sucked it up in a day.

Alibaba Jack Ma - Deep Fakes and 2nd takes ....

Deep States with plenty of cake for all...

Art of social engineering and steering the masses into the next big buy - bring down big brother - watch them cry, no.. better yet ...watch them fall.


View: https://m.youtube.com/watch?v=LvdLovAaYzM

 

[Jesus X]

@Hauler Correct me if I'm wrong on anything

View attachment 26206
Alright, so here goes:
Game stop is a dying business. Downloaded games etc gonna wreck it. It's dying and nearly dead.
Big hedgefunds bet that its dead. They are shorting the stock which requires borrowing shares at a future expected price (down) to make profit.

Reddit idiots get together, and largely using Robinhood (stock app), buy the shit out of game stop in unison. The stock shoots up as they all buy and run the price up.

Uh oh, hedge fund is betting the stock is going down. It's shooting the moon. wtf?
Hedgefund can take the L and lose money (rule #1 don't lose money!) or they can pull more bets that the future price is gonna crash. But that requires them borrowing shares (more demand!) the stock price goes higher! Reddit idiots buy more!

If you are a reddit idiot you pay 5 bucks to get game stop and it goes to 100. You sell it off and you might start a run on the stock. Next guy out and the next and the next. The hedgefund makes money as the price collapsed. But maybe you are driving by something bigger? Meme life. So you want to see the hedgefund lose.


So you don't sell for a profit and instead just keep buying!
View attachment 26204

Yes some are making 4 milion dollars in a day and holding! Buying more! And because of the feedback loop (idiots knowing it'll go up more tomorrow while loving the excitement of challenging the hedgefunds bets all while the hedgefund keeps taking bigger bets assumign they have more cash than the idiots) the price keeps shooting up!


View attachment 26205
Highest traded stock on the market.



So what happens if the fund runs out of money to keep making new bets to cover the old bets, hoping they can outlast the idiot money???


Well they fold from no liquid cash like Melvin Capital did today...

Citadel, Point72 Back Melvin With $2.75 Billion After Losses

(Bloomberg) -- Hedge fund titans Ken Griffin and Steve Cohen boosted Gabe Plotkin’s Melvin Capital, injecting a total of $2.75 billion into the firm after it lost about 30% this year.Citadel funds and firm partners will invest $2 billion, while Point72 Asset Management’s investment will be $750...

finance.yahoo.com

I wonder if the SEC can have these redditors prosecuted for doing this. Reddit is not anonymous and they can probably get their identity easily. shit is hilarious though.

 

[Qat]

Part of reddit nihilism on this is that the entire market decoupled from value a long time ago and runs on hype/manipulation.

So fuck it. Burn it down.

I love it, the stock market is a flawed game having way too much influence on reality imo.

 

[Hauler]

@Hauler Correct me if I'm wrong on anything

View attachment 26206
Alright, so here goes:
Game stop is a dying business. Downloaded games etc gonna wreck it. It's dying and nearly dead.
Big hedgefunds bet that its dead. They are shorting the stock which requires borrowing shares at a future expected price (down) to make profit.

Reddit idiots get together, and largely using Robinhood (stock app), buy the shit out of game stop in unison. The stock shoots up as they all buy and run the price up.

Uh oh, hedge fund is betting the stock is going down. It's shooting the moon. wtf?
Hedgefund can take the L and lose money (rule #1 don't lose money!) or they can pull more bets that the future price is gonna crash. But that requires them borrowing shares (more demand!) the stock price goes higher! Reddit idiots buy more!

If you are a reddit idiot you pay 5 bucks to get game stop and it goes to 100. You sell it off and you might start a run on the stock. Next guy out and the next and the next. The hedgefund makes money as the price collapsed. But maybe you are driving by something bigger? Meme life. So you want to see the hedgefund lose.


So you don't sell for a profit and instead just keep buying!
View attachment 26204

Yes some are making 4 milion dollars in a day and holding! Buying more! And because of the feedback loop (idiots knowing it'll go up more tomorrow while loving the excitement of challenging the hedgefunds bets all while the hedgefund keeps taking bigger bets assumign they have more cash than the idiots) the price keeps shooting up!


View attachment 26205
Highest traded stock on the market.



So what happens if the fund runs out of money to keep making new bets to cover the old bets, hoping they can outlast the idiot money???


Well they fold from no liquid cash like Melvin Capital did today...

Citadel, Point72 Back Melvin With $2.75 Billion After Losses

(Bloomberg) -- Hedge fund titans Ken Griffin and Steve Cohen boosted Gabe Plotkin’s Melvin Capital, injecting a total of $2.75 billion into the firm after it lost about 30% this year.Citadel funds and firm partners will invest $2 billion, while Point72 Asset Management’s investment will be $750...

finance.yahoo.com

In a nutshell, you nailed it.

We've been discussing it the last few days on the Corona Stock Market thread.

I was as puzzled as anyone about the GME movement until I did some research and found their subforum. It's a fascinating discussion on price manipulation and pitting common investors vs the big money giant hedges. The market reporters are largely split on "this is illegal" and "it's about time the giant hedges took a kick to the nuts".

Reddit targeted GME because it was heavily shorted (over 100% - which in itself indicates foul play) and it had a relatively low amount of float where their smaller quantity trades would be able to move the market and put pressure on short positions (margin calls). The run felt almost over but Elon tweeted about the activity and linked their subforum. That was fuel to the fire.

They've ran GME up another 111% in AH trading last night. 52 week low of under $3 and it will open this morning $300+. But now that it's in the news and Elon mentioned it, non-Reddit investors might start jumping in (FOMO) which will keep the run going. If the hedges exit their short positions instead of paying margin, that will further push the price up as they will have to pay market price to buy the shares.

Huge short squeeze and there's no telling where it stops.

Bed, Bath & Beyond (BBBY), Blackberry (BB), Nokia (NOK) and AMC Entertainment (AMC) are also on their radar to attack due to heavy short interest, but GME is their prized pony right now.

 

[Hauler]

And meanwhile gamestop as a company is worthless.

Not anymore they're not.
They are a $10 billion company at these levels.

I assure you some very real conversations are taking place in their boardrooms. This is a lot of capital that basically appeared overnight. If they have a plan for future survival (not being the gaming version of Blockbuster) - this money can get them there.

 

[Hauler]

I wonder if the SEC can have these redditors prosecuted for doing this. Reddit is not anonymous and they can probably get their identity easily. shit is hilarious though.

In their defense, it's not illegal to talk about stocks. Everybody does it. There are "experts" who have huge email distribution groups and for $10/month you can get their stock picks. Openly talking about stock picks on a forum is different - but it's not.

The market has long been driven by speculation - and at the end of the day a stock is worth what someone will pay for it.

Bitcoin ran up to $40k because that's what people were willing to pay for it.

GME at $300+ is no different.

 

[FINGERS]

wow.

Thank you for the breakdown. I was aware of the price going up but wasn't aware of the story.

You've gotta love the internet. Maybe my generation will be the one to bring down capitalism after all.

I don't see it as nihilistic at all. I think there is an aim.

 

[ThatOneDude]

AMC is up over 100% from where I bought in Monday afternoon.

Wooooo

 

[FINGERS]

This guy get's it.....^^^

 

[ThatOneDude]

@Hauler how long are you planning on holding? We tossed some "change" at it so even if it crashes its not a big deal. That being said $100+ would be awesome

 

[ThatOneDude]

And we are over $11 for AMC

Trade volume is already over 43 million.