It looks like collusion too - the SEC is going to be trying to figure out who fucked whom, when, how hard, what they said before and during, and was it illegal to do so, for years.
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I think it's the Russians and Chinese.
I wasn't saying to feel bad for the fund partners. Nor do I feel that bad for the college endowments. They have grown their AUM incredibly in past 20 years and yet tuitions have only gone up. Some of the Ivy League schools could take a small percentage of their annual endowment returns and make tuition free for every student and still have hundreds of millions of dollars to build new libraries on campus, etc.
Not so easily...there are a lot of rules for what endowments can be spent and cannot be spent on...
I'd like to hear puregravity's opinion on this.
Just part of trying to make retail investors the villain. Give me a break - this hedge fund wanted to run this particular company in to the ground - 15,000 full time employees by the way - by doing something that is shady AF and should probably be illegal. They can get fucked.
Melvin Capital is free to liquidate other assets to cover their fucked-up short position at any time, which would make other hedge funds richer. Market balances itself out.
TL;DR - no i don't feel guilty at all.
Add this to the discussion topic list then too while you're at it then:
Those looking to diversify and rally up another long-shorted stock might want to think about MO as it appears smoking is back on the rise
https://www.wsj.com/articles/during-...ng-11611829803
Imagine a horde of internet day traders, sucking down Marb Red after another, poking Wall St. in the eye as they watch their favorite 90's companies soar to new heights. It's win win.
Seconded. It's not a lot different from the mortgage crisis. Hedge funds taking super risky positions (like shorting over 100% of float!) and then trying to claim they're the victims. WE bailed out the idiots that blew multi-billion dollar holes in their balance sheets. Nobody bails out the retail investor if they make a bad trade. If you want to talk regulation etc., maybe regulate the funds' ability to short over 100% of float.
Bingo. It's something they LOVE to do. Intentionally run companies into the ground so they can get rich. Maybe it's time for "Vinny" to pay a visit to the YC to go collect. I'm honestly surprised that sort of thing doesn't happen more often. Only in the movies?
Call Netflix. This will be bigger than Tiger King.
total market manipulation by the big boys.
Melvin (original short firm), was given $3B by Citadel (order house), Citadel processes all Robinhood orders....yeah no connection at all the why they stopped allowing retailers to buy AMC, NOK, BB, GME, but allowed the hedges to continue to buy...100% bullshit of epic proportions.
This reddit movement amazes me a bit...it shows the power of a group of regular joe can actually buck the system if they stick together. I hope change comes from all this.