Reddit, u/wallstreetbets & GameStop: market manipulation is OK if you’re rich
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Ned_Flanders
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This isn't really new.
It's the same shtick that hedge funds were doing in the 80's - assessing data to find weaknesses in firms, and targetting them to exploit that position.
Only difference is who got the data and how
Also this isn't a perfect weapon against all stocks. Lots of IPOs now are releasing shares that don't even have voting rights, so as to ensure controls never leave the original owners
- Mar 16, 2002
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They are using the hedge funds weapon against them
Ned_Flanders
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Taylor
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It's a pump and dump, the dump just hasn't happened yet. The thing is, the short positions on this stock are becoming more and more accurate of a guess as it gets higher and higher, eventually this will tumble as people seek to cash in what they have made and nobody wants to be left holding the tulip.
Usually the hedge funds would put their shorts on, have their media mates start talking down the businesses and then make a fortune as people start to sell them. Good to see the mass media effect stinging them in the tail.
Interesting that the big industry is starting to shut down the discord etc, suspending action on this so that the small investors don't lose their $300... right, it's nothing to do with the billions others will lose.
If you're guiding the plan on this you'd already have pulled out, put on the short and then told everyone you are moving to a new company on this. Start the snowball effect and you'll be selling thousands of shares at $350 and buying them later to transfer them at $25.
Usually the hedge funds would put their shorts on, have their media mates start talking down the businesses and then make a fortune as people start to sell them. Good to see the mass media effect stinging them in the tail.
Interesting that the big industry is starting to shut down the discord etc, suspending action on this so that the small investors don't lose their $300... right, it's nothing to do with the billions others will lose.
If you're guiding the plan on this you'd already have pulled out, put on the short and then told everyone you are moving to a new company on this. Start the snowball effect and you'll be selling thousands of shares at $350 and buying them later to transfer them at $25.
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Yep and that’s the reason why they want to target silver next apparently ... they won’t be able to force a trading halt
Nokia, AMC and BlackBerry also getting love. r/wallstreetbets has gained 2 million subscribers in about a day, so there might still be a bit of juice in this yet.
There'll be plenty of suckers who jump in late and lose, but overall, it'll see a decent transfer of wealth from Wall St. bigwigs to an army of memelords on Reddit.
The internet is a strange place.
There'll be plenty of suckers who jump in late and lose, but overall, it'll see a decent transfer of wealth from Wall St. bigwigs to an army of memelords on Reddit.
The internet is a strange place.
Ned_Flanders
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They have suspended those exchanges before
This isn't a silver bullet, once people know the attack method they will put means in to defend against it.
And here's my prediction, this system will collapse because it's reliant on the collective working collectively. Self interest will break that unity at some point, and then it becomes a free for all and a lot of people lose a lot of money
David vs Goliath, pity it’s not true though.
Yes a bunch of small investors saw the short and that the hedge funds were over exposed. But their small trades aren’t shifting the market at least initially, since then a lot have jumped onboard though. The early trades were small amounts in the order of $600 trades, some guys were only buying single shares.
Truth is the institutional investors also saw the short and decided to put the squeeze on. The reddit investors got lucky.
But the little guy taking on hedge funds makes for a better story, and the hedge funds have jump on it as a Hail Mary hoping regulators will step in and save them.
Yes a bunch of small investors saw the short and that the hedge funds were over exposed. But their small trades aren’t shifting the market at least initially, since then a lot have jumped onboard though. The early trades were small amounts in the order of $600 trades, some guys were only buying single shares.
Truth is the institutional investors also saw the short and decided to put the squeeze on. The reddit investors got lucky.
But the little guy taking on hedge funds makes for a better story, and the hedge funds have jump on it as a Hail Mary hoping regulators will step in and save them.
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What’s not true?
CheapCharlie
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I had a chuckle when this was kicking off a few days back. The power of thousands of retail investors piling in for the chance at some profit and the big player shorters getting hammered
Short selling is okay with me, but there are large risks, esp. when you have to buy back in a rising market.
Look at all the Tesla shorters that got caught with their pants down recently.
Just another form of gambling as it is happening right now
Short selling is okay with me, but there are large risks, esp. when you have to buy back in a rising market.
Look at all the Tesla shorters that got caught with their pants down recently.
Just another form of gambling as it is happening right now
CheapCharlie
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This is what a lot of people are thinking right now
Ned_Flanders
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I had a mate who lost everything on a single short, and even had to get his folks to sell their home to pay his debts
shorts have a place, but those who use them as a punt rarely appreciate the risk
Imagine losing to redditors of all people, those guys can't talk to women and spend other time posting 15 year old anime girl pics on their sub
If that isn't an indication that most billionaires and the economical system is a complete joke
If that isn't an indication that most billionaires and the economical system is a complete joke
Lol he sounds like he belongs on r/wallstreetbets
- Mar 25, 2003
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The only thing I don't get with shorting, is what's there to enforce the shorter to rebuy the shares if the price goes up?
Obviously there's a contract in place, but if they declare bankruptcy, then that's no good for the original owner right?
Obviously there's a contract in place, but if they declare bankruptcy, then that's no good for the original owner right?
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Don't understand this, but I enjoyed the last scene of Trading Places and this seems like the same thing so good job reddit.
Still skyrocketing in premarket trading - hit $500 an hour ago.
This is going to end in an almighty burst
This is going to end in an almighty burst
