Hedge funds that bet against Game Stop are crying foul as they lose a fortune, because the crowd noticed their weakness and exploited it. Sounds very Wall Street. Is it against the rules? How could it be in a market that has too few rules. The difference now is that the crowd has the power instead of the billionaires, so it can’t be fair, right?
Hedge funds basically borrowed money to buy stocks for Game Stop that shouldn’t even have been available for sale (136%??), and a crowd of investors very publicly noted this situation, explained publicly what they were going to do, and the hedge funds didn’t immediately back down and take a small loss, and so lost the entire amount. As a result of not being able to cover their loss, they were forced to buy the stock they bet against, pushing the price up even further. A short squeeze happened with Tesla in the past year too, part of the reason for its stock price meteoric rise.
Billionaire CEO defends Redditors; CNBC host sounds like a whiner sad that his team made a bad bluff and got called.
Can’t tell if joking… @theserfstv · “lol Gamestop just became an S&P top 500” If true and it qualifies, that would require it be included in the S&P list of the top 500 stocks, like Tesla, pushing its price up further.
@IGN · “Amidst ongoing GameStop stock fluctuations, WallStreetBets has been banned from Discord for allowing “hateful and discriminatory content after repeated warnings,” and has gone private on Reddit.” https://bit.ly/3t25EEC
@JuddLegum · “Funny no one mentions that the primary “victim” of the GameStop trading, Gabe Plotkin, worked for SAC until the firm pled guilty to insider trading in 2013 and paid $1.8B in fines to the SEC and this week, Plotkin got a 2.75B bailout from his old boss, Steve Cohen, SAC’s founder.”
Memes are flowing:
“You said crypto was too volatile? Mmhmm… (Woman tipping hand)
Wall Street: Crypto is volatile.
GameStop: Hold my Beer (mug)”
“GameStop, AMC, Tootsie Roll, BlackBerry: there’s a theme here and it’s elder millennial nostalgia.”
“Hold the line, “They can take our subreddit, but they can never take our $GME”
– Actually they can take it, and will probably try. These folks need to learn about Bitcoin, badly.