Gamestop stock (or: David vs Goliath)

[RblDiver]

I'm a bit surprised I've not yet seen anyone comment about this situation going on. Super short version (no pun intended, as you'll see in a sec), hedge fund shorts Gamestop stock. Reddittors on WallStreetBets get upset, decide to all start buying it. Price skyrockets as more and more people get in on it (which means the hedge fund that shorted the stock is about to lose a boatload of money). Hedge fund gets upset, trading companies get upset, start trying to restrict trading on it.

Basically, if a hedge fund tries to manipulate stock prices, they're fine with it, but when a bunch of little guys band together to do the same thing, they get pissy.

This guy sums it up pretty will imo (language warning).


And now they're blocking trades of GME, AMC, NOK, and probably soon others (all targets of WSB). That seems like illegal collusion to me.

[Irving]

Some posts about it here: https://www.ar-15.co/threads/91081-L...=1#post2316129

Thanks for posting the video so the rest of us can see what's going on.

[def90]

Yeah, the hedgefund that shorted it had to buy in at something like $90 a share to cover its short, they lost something like $2 billion. Lol

[buffalobo]

The little guys will get investigated and prosecuted while the big guys cry to regulators about manipulation.

Manipulation that the big guys use on a daily basis.

[hollohas]

Robinhood and other brokers put a stop to this and forced the stock to crash, protecting the hedge fund shorts. They put restrictions in place so people could no longer buy these stocks...they could only sell them. Pure market manipulation.

One hedge fund lost 30%...billions of dollars in game stop short bets alone. Citadal Investments injected over $2B into that hedge fund Monday to cover it. Citadal Investments is financially tied to Robinhood. It's all tied together. The hedge funds couldn't lose, so all those assholes worked together to outright fuck normal people. To shut it down and only let people SELL a dozen different stocks? To literally force them to crash. This is bullshit.

[Irving]

So if you didn't sell in time you'd lose money. Think most people who sold made money though?

[hollohas]

Depends on which stock. Game stop, many probably made money if they sold. Game Stop wasn't the only one. They also shutdown buying for American Airlines too. And a dozen others.

But that's the other point. They essentially forced people to sell (why would anyone hold a stock that literally can't be purchased) which is intended to make sure the super risky short bets don't lose.

Fuck the retal investor by not letting them buy "volatile" stocks (to protect the dumb dumb average Joe of course) but protect the hedge fund shorts from lossing on their risky bets.

[colorider]

Pump and dump. Ever see the movie Boiler Room? Same concept except game stop is a legit company w stock.

[MrPrena]

https://www.ar-15.co/threads/91081-L...=1#post2316129


Without using complicated equation, you can calculate the past 6 days (whatever they had crazy gains) change in volume relative to 30 day average.
Sum all those up and calculate the previous short interest. That will basically give you an eyeball equation of when large gain is over from short cover.

Then it will oscillate some % afterward but not as big as this week.

There are still many shares not covered on dillards respect to short interest.

[hollohas]

One of the other shorts that was going sky high was Naked (NAKD). It started the week at about $0.45 and was making a run. I bought a bunch of it.

It hit $3.40 early today and then Robinhood shut down buying. It immediately tanked to $1.10. I sold the second Robinhood closed buying and got out before it bottomed out.

I ended up making about 60% on it by the time I sold, but it would have went WAY higher today if they didn't close buying. Some people that bought late and sold late today probably lost a bunch.

PS - I didnt even have any idea NAKD was one of those shorts that the reddit folks targeted. I just got in because it was making a run. Figured I'd make a little day trade and make some $$. Found out this morning when it got shutdown by robinhood that it was one of them.