Some smart person explain the GME (gamestop) thing

[dan_pdx]

What an insane maneuver. Stabbing your most loyal customers in the back is a bold move

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.

[Timberridge]

I think it's the Russians and Chinese.

[DLD in UT]

I'll feel bad when hedge fund owners/traders stop taking millions->billions in fees. They don't run charities, that's for sure.

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.

[LeeLau]

Do short contracts expire? I thought shorts never expire, problem is as the price increases you pay more and more interest, and if your broker doesn't think you're gonna be able to cover your debts they can call your ass to the carpet to pay up immediately. I see people talk about "shorts expiring" enough that I need to ask this in the TGR safe space...

A stock can be shorted for as long as the person from whom you borrowed it had inventory to loan.

When the inventory to loan becomes depleted then the stock lender recalls the stock and then you have to cover.

This is called a forced cover or "skullfucking"

[Timberridge]

A stock can be shorted for as long as the person from whom you borrowed it had inventory to loan.

When the inventory to loan becomes depleted then the stock lender recalls the stock and then you have to cover.

This is called a forced cover or "skullfucking"

Back in the old days, you'd just call up a "finder," usually some guy named Vinny in FL, and he'd locate some for you. It came with a bit of a vig attached but it was sure better than getting bought in.

[The Kids Are Alright]

As an individual you can’t just walk into Blackrock and give them a few grand.... You have to be an “accredited investor” to invest in a hedge fund. Which basically means you have bundles of money. Therefore the fund’s capital often comes from pensions, employee benefit plans, foundations, endowments, etc...


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If my pension/endowment was Invested with Melvin Capital and I discovered what they were shorting, I’d be pissed. It’s most likely not that kinda money imo

[The Kids Are Alright]

Not so easily...there are a lot of rules for what endowments can be spent and cannot be spent on...

[smartyiak]

Back in the old days, you'd just call up a "finder," usually some guy named Vinny in FL, and he'd locate some for you. It came with a bit of a vig attached but it was sure better than getting bought in.

Which reminds to ask: btwn this, payday loans, loans against autos, 21% credit cards, and places like Rent-a-center...why is loan sharking illegal? Is it the broken leg thing???

[Timberridge]

I'd like to hear puregravity's opinion on this.

[BmillsSkier]

I'd like to hear puregravity's opinion on this.

How much time do you have?

[Timberridge]

How much time do you have?

I'll be here all day to entertain and be entertained. He WAS quite opinionated on the bitcoinz.

[paulster2626]

I saw it pointed out last night that the greedy Hedge Funds actually represent millions of ordinary investors in the form of retirement funds and pension funds?

Anyone care to comment on that?

Does this represent a threat to stock market stability?

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.

[BmillsSkier]

I'll be here all day to entertain and be entertained. He WAS quite opinionated on the bitcoinz.

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.

[cravenmorhead]

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.

TL;DR - no i don't feel guilty at all.

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.

[Timberridge]

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.

I can see the movie tagline now. "Come along as a bunch of unemployed dads in FL trailer parks take down the icons of Wall Street" as Eye of the Tiger plays in the background.

[MontuckyFried]

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.

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?

[MontuckyFried]

I can see the movie tagline now. "Come along as a bunch of unemployed dads in FL trailer parks take down the icons of Wall Street" as Eye of the Tiger plays in the background.

Hahahaha. I love it!!! Quick. Somebody put together a script!

[Timberridge]

Call Netflix. This will be bigger than Tiger King.

[rod9301]

Read this: https://www.google.com/amp/s/www.aut...ueeze-of-2008/

Basically, people are buying the stock because they believe a short squeeze is imminent. So the stock exploded/continues to rise. People on the short side can fight back (causing large volatility in price), but that has only enraged the internet and driven the price higher. At this point I think those hedge funds are about to learn the internet is undefeated and the price is going to hit 4 figures, but I could be wrong and this ends up just being a massive pyramid scheme. Either way I’m along for the ride because YOLO.

No, all the reddit people are going to lose big

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[BmillsSkier]

Call Netflix. This will be bigger than Tiger King.

Do we need an agent?

[rod9301]

Do short contracts expire? I thought shorts never expire, problem is as the price increases you pay more and more interest, and if your broker doesn't think you're gonna be able to cover your debts they can call your ass to the carpet to pay up immediately. I see people talk about "shorts expiring" enough that I need to ask this in the TGR safe space...

If you use a synthetic short, the calls and puts expire

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[Bunion 2020]

No, all the reddit people are going to lose big

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That is my take as well.

[Skidog]

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.

[Skidog]

That is my take as well.

what about the short squeeze?

[paulster2626]

No, all the reddit people are going to lose big

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I didn't. Came out ahead. Not a lot, but more than I had on Monday.