News Article: The strange but true reason why GameStop's stock keeps surging

[92tide]

As a momentary annoyance, at worst, for the MAN.

The impressionable idiots on reddit are going to learn an important lesson about buying a crappy stock at 300 a pop here soon.

i heard a brief bit about this yesterday on the radio. one of the folks being interviewed pointed out that at the end of the day, the professional hedge fund guys can absorb big losses if needed and a bunch of folks are going to find out that they aren't able to do the same.

 

[AUDub]

You don't have to kill the man to stick it to him, and this groups absolutely did that. There really is no discussion about that.

No this is a classic example of a mob of idiots being taken advantage of. It's a pump and dump, simple as that. As for the idiots participating and set to lose money that want to frame this as "sticking it to the MAN."

"Yeah, that'll show'em."

As to whether or not some of these folks tried to time this and will lose money - no sympathy from me. When you treat the stock market like a roulette wheel, you deserve to lose it all.

Damn shame. It is a roulette wheel with a lot of participants, willing or not. The effects of this can go farther than a simply shorting a junk stock, and it'll be the normies that have no idea what was going on that take the biggest hit, not the MAN.

 

[AUDub]

i heard a brief bit about this yesterday on the radio. one of the folks being interviewed pointed out that at the end of the day, the professional hedge fund guys can absorb big losses if needed and a bunch of folks are going to find out that they aren't able to do the same.

Correct. For the most part the pros know how to play the game, recognized and accounted for the risk beforehand, can easily eat the loss and continue chugging right along.

 

[Tidewater]

https://twitter.com/i/web/status/1354780016912044033

Gonna be an entertaining lawsuit, and I look forward to Katie Porter interrogating the CEO in the inevitable House hearing.

You can stop this particular outlet, but as long as there is an internet, this behavior will continue. Stopping Robinhood is like holding the Black Warrior River back by sticking your hand into the river.

 

[AUDub]

Jeez the mob of morons over on that sub in the GME thread. Just so much stupid.

 

[AUDub]

Jeez the mob of morons over on that sub in the GME thread. Just so much stupid.

"BUY! HOLD! BUY! HOLD! BUY! HOLD LET'S GOOOOOOOOOOOO!"

Just a mob of modern internet culture stupidity.

 

[B1GTide]

Stock market manipulation is a game that undermines the foundation of the stock market itself.

 

[AUDub]

Stock market manipulation is a game that undermines the foundation of the stock market itself.

They're raging about Robinhood and a bunch of idiots are talking about shredding them on their IPO lol.

The mods seriously need to clamp it down soon.

 

[RollTide_HTTR]

"BUY! HOLD! BUY! HOLD! BUY! HOLD LET'S GOOOOOOOOOOOO!"

Just a mob of modern internet culture stupidity.

Not to mention all the "NOW BUY AMC!" people or whatever stock they're pushing now.

 

[TexasBama]

Stock market manipulation is a game that undermines the foundation of the stock market itself.

We should focus on simple investments like MBSs

 

[Tidewater]

Not to mention all the "NOW BUY AMC!" people or whatever stock they're pushing now.

Or gold.

 

[CharminTide]

They're raging about Robinhood and a bunch of idiots are talking about shredding them on their IPO lol.

The mods seriously need to clamp it down soon.

In their defense, Robinhood probably lost a lot of users today. I saw estimates that as many as half of their users held some position in GME (which is bonkers if true). They're being raked over the coals on social media, and I'm not sure their PR is strong enough to recover before the IPO. And if there were collusion between Citadel and RH to stop retail trading today, I think everyone has a right to be upset.

I don't have a Robinhood account (Fidelity is boring but reliable, while M1 is my "responsible millennial" play), but I will certainly never open an account with them after this.

 

[TexasBama]

I wouldn’t lose any sleep if the redditors go after Fertitta when/if he IPOs the Golden Nugget. Then maybe he’d have to sell the Rockets

 

[AUDub]

In their defense, Robinhood probably lost a lot of users today. I saw estimates that as many as half of their users held some position in GME (which is bonkers if true). They're being raked over the coals on social media, and I'm not sure their PR is strong enough to recover before the IPO. And if there were collusion between Citadel and RH to stop retail trading today, I think everyone has a right to be upset.

I don't have a Robinhood account (Fidelity is boring but reliable, while M1 is my "responsible millennial" play), but I will certainly never open an account with them after this.

RHs actions may have hurt more than they helped long term, no doubt, but they aren't the only ones doing it and the mob has latched on.

Hopefully a bunch of these idiots have already pulled out their initial investment so they're playing with house money, but there's going to be a reckoning and a lot of these rubes are going to lose a lot of money for themselves and maybe uninvolved third parties, all over the lulz.

 

[Jon]

interestingly I got a "don't panic" email from Schwab a few minutes ago. When will these companies realize that has the opposite effect?

 

[Cruloc]

All those big money folks that were shorting the stock basically do the same thing those redditors did, just on a daily basis...they use the market like a casino. When it happened to them, in a completely legit and legal way, they want to make sure it can't happen again to protect themselves.

They want to move the goalposts so to speak.

This is legitimately the elite big money vs the regular guy's pennies. They don't like it.

 

[92tide]

https://twitter.com/i/web/status/1354786505873625091

 

[AUDub]

Necropost.

James Jami, an excellent citizen journalist, released a 2 part documentary about this. Part 1 dealt with the GameStop situation, and part 2 is about where they went next, bed bath and beyond.

 

[dtgreg]

The Gamestop thing, in my view, was disgust by the retail investor at the illegal, naked shorting going on. The SEC is a joke. The DOJ is a joke. The FBI is a joke. Regular folks had an opportunity to make the criminals choke on their criminal behavior and apparently the criminals are in so much trouble and so leveraged that it may possibly bring down the entire stock market around the world? So the goalposts are being moved and the rules altered to screw the retail investor out in the open?

What have I gotten wrong?

 

[AUDub]

The Gamestop thing, in my view, was disgust by the retail investor at the illegal, naked shorting going on.

It’s kind of a shibboleth that naked short sales were occurring. Not really the case. You’ll see that “140%” number being bandied about but it’s not really indicative of much. Short interest can exceed 100% with nothing snakey going down just by virtue of how short interest is calculated.

There were a few sparse fails to deliver but they were rectified fairly quickly. i.e. these short positions were backed by real securities.