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GameStop GME and WSB saga

Did not get on the car.... but feels like tons of other similar trash stock may follow the same pattern.
Current market looks like no fundamental and logic matters..... pump and dump group now are juice(short) squeezer...LOL
 
isn't this market manipulation and a crime?!
It will be up to SEC to decide but from what I've seen so far, it's hard to say anything done illegally. A bunch of millennials, Robinhood retail traders decide to buy up a stock that is being shorted by many sophisticated big money funds. As a result, many of those shorts took a loss of several billions this year alone and closed out their positions.
There is no inside info involved, just a resolve by many young people to give a finger to the system and the game. I think many of the retail traders are not taking a quick profit but keep buying to prove a point. And they use call options to inflict the most damage (when you buy call options, the brokers have to buy the underlying stocks to cover the call, hence making the stock price higher). The irony that Wall Street calling Main Street investors unsophisticated.
 
If this had been another hedge fund buying up GameStop to force Melvin Capital out, nobody would bat an eyelash. In fact, instigating short squeezes is an entirely legitimate hedgie strategy. What makes this frightening for the elites is that this was organized online and done in a fairly decentralized way. Once sympathetic populists got wind of what /r/WallStreetBets was up to, they instantly threw their hat in the ring (and many contributed by buying some shares). We saw the Winklevoss twins, Elon Musk, and nearly all of Bitcoin Twitter come out swinging in defense of this exciting sneak attack on Wall Street. Hilariously, a guest on Bloomberg said the incident was “as bad as the capitol riots.” Ben Shapiro appeared to straddle the fence on it, trying to keep his populist followers while also chiding them for having some lighthearted fun at the expense of his dual citizen cousins.

 
This is where we are in the story of GameStop. At least one hedge fund was committed to delivering shares of this company at a few bucks per share, but now the shares are many times higher and becoming something close to unobtanium. The result is the hedge fund, Melvin Capital, has been wiped out. They had to liquidate all of their other holdings to cover their short position. Even with help from other hedge funds, they will file for bankruptcy next week.

By itself, this is an amusing story, but hardly big news. But, no one really knows if this is an isolated situation. The insiders were targeting a number of companies, hoping to jawbone down their share prices while they aggressively shorted those stocks. It is not unrealistic to think there are dozens of hedge funds out there working this grift, so this could be the tip of a much larger iceberg. The movie chain AMC Entertainment is seeing its stock follow GameStop for the same reasons.

Now, this may not sound very interesting, but even in today’s world of magical finance, math still matters. If you have to raise cash to cover your bad bet on a naked short sell, it means selling something to raise the cash. Hedge funds tend not to sell their furniture or expensive sports cars, so they sell their good holdings. Usually, they sell their best holdings, as they are the most liquid. If enough hedge funds are forced to liquidate their good holdings, those holdings will decline in price.

This is the great fear in these situations. No one knows how much exposure there is to this bad trade. That is why the general market will decline, as the robots that do almost all of the trading move into the safest of safe harbors. This, in turn, can result in selling of otherwise solid assets, simply because no one wants to be holding an asset in decline, especially in a declining market. Given the ridiculously inflated share values, this short squeeze could signal a very big correction.

It could also be a big nothing or it could mean the government comes in and makes everything right with bailouts or new rules to prevent further erosion. That really is the story here with GameStop. This revolt of small retail investors against this hedge fund is about the larger issue. The marketplace has been perverted by insiders with special access to both market makers and market regulators. The financial markets are no longer tethered to economic reality. It is just a giant bust out.

 
This two-faced haramzadi ....
 

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The most interesting part to me is the Gamma squeeze the dealers were forced into and the collateral requirement issues the brokers ran into. It will be fun to see how regulation evolves once congress realizes the post-GFC regulation made options more visible and easier for individuals to get into and induced strict risk limits on brokers.
 
It will be up to SEC to decide but from what I've seen so far, it's hard to say anything done illegally. A bunch of millennials, Robinhood retail traders decide to buy up a stock that is being shorted by many sophisticated big money funds. As a result, many of those shorts took a loss of several billions this year alone and closed out their positions.
There is no inside info involved, just a resolve by many young people to give a finger to the system and the game. I think many of the retail traders are not taking a quick profit but keep buying to prove a point. And they use call options to inflict the most damage (when you buy call options, the brokers have to buy the underlying stocks to cover the call, hence making the stock price higher). The irony that Wall Street calling Main Street investors unsophisticated.
LMAO. You literally have all these activist investor go road show and advertise their short position. In my opinion that is much more illegal than wsb which is whole bunch of retards just say some shit.
 
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