Discussion Game Stop Stock Short Squeeze

[Fenixgoon]

ahahaha 418

So my limited understanding of the situation is that the people who are hardcore on shorting have two options:

1) keep on shorting, and hope it all pays off in the end. As the price goes up, the need to short increases, driving prices even higher in a vicious cycle.
2) bail now and take a massive loss

The first very much sounds like a sunken cost fallacy...

I'm sure there's more to it. Can anyone explain?

 

[sdifox]

So my limited understanding of the situation is that the people who are hardcore on shorting have two options:

1) keep on shorting, and hope it all pays off in the end. As the price goes up, the need to short increases, driving prices even higher in a vicious cycle.
2) bail now and take a massive loss

The first very much sounds like a sunken cost fallacy...

I'm sure there's more to it. Can anyone explain?

shorters are fucked. The total shorted is 134% (probably more now) of total float stock. There isn't enough stocks to cover all the shorts. I hope GME doesn't issue stocks to bail out short sellers.

Fucking brokerages are slowing retail buyer down, that is bullshit.

 

[[DHT]Osiris]

So my limited understanding of the situation is that the people who are hardcore on shorting have two options:

1) keep on shorting, and hope it all pays off in the end. As the price goes up, the need to short increases, driving prices even higher in a vicious cycle.
2) bail now and take a massive loss

The first very much sounds like a sunken cost fallacy...

I'm sure there's more to it. Can anyone explain?

Not even sure that they can keep shorting, it's like if you borrowed from Vinnie to pay Jesse, and now both of them are knocking on your door to break your kneecaps.

 

[Homerboy]

196...

 

[Fenixgoon]

shorters are fucked. The total shorted is 134% (probably more now) of total float stock. There isn't enough stocks to cover all the shorts. I hope GME doesn't issue stocks to bail out short sellers.

Fucking brokerages are slowing retail buyer down, that is bullshit.

By "retail buyers" you mean people who are looking to buy the stock and hold it for some period of time, as opposed to someone making an active bet (short) against GME?

 

[sdifox]

By "retail buyers" you mean people who are looking to buy the stock and hold it for some period of time, as opposed to someone making an active bet (short) against GME?

retail as in non institution. so you, me and all the people on WSB.

 

[cytg111]

Glorious Dumpsterfire !!!!

 

[Franz316]

Most of the retail investor sites have now dissallowed buying GME and will only allow selling. That is pure bullshit.

 

[theeedude]

Robinhood has now officially screwed their own users. They are allowed to only sell GME, AMC. BB, NOK, etc. So there are going to be sellers but almost no buyers in those stocks, and prices will be suppressed. Open market manipulation by the broker. That's what you get with free commissions. Robinhood gets its revenues from selling high frequency trading data to Citadel, which was short GME through its investments in Melvin. So that's who they are serving, users are a product they sell.

 

[K1052]

I see we are at the Empire Strikes Back phase of things.

 

[zinfamous]

ahahaha 418

can someone explain this post to me? I missed something. ....I also have no idea what "418" means. oh stock price. NVM.

wasn't it 438 overnight?

 

[fskimospy]

I feel like no matter what happens the lawsuits that come out of this are going to be bananas.

 

[fskimospy]

can someone explain this post to me? I missed something. ....I also have no idea what "418" means. oh stock price. NVM.

wasn't it 438 overnight?

In the last hour it went from ~$400, down to $120, and is now ~$250.

 

[zzyzxroad]

retail as in non institution. so you, me and all the people on WSB.

I guess the question I have is before all of this, why would anyone choose to buy GME stock? They are going to die a slow death. Are there folks out there who think they have a future? It seems a sure bet that their stock will continue to drop and assume that is why the hedge funds felt no risk shorting them?

 

[Fenixgoon]

can someone explain this post to me? I missed something. ....I also have no idea what "418" means.

I'm assuming that was the stock price at one point. Out of curiosity I took a look at the last 5 days of trading and the stock is comically volatile.

9:58am today: 468/share
11:18: 126/share
11:42: 243/share
Now: 207

The higher the stock stays, the more screwed everyone shorting GME is

 

[K1052]

I feel like no matter what happens the lawsuits that come out of this are going to be bananas.

Make Billable Hours Great Again.

 

[[DHT]Osiris]

I guess the question I have is before all of this, why would anyone choose to buy GME stock? They are going to die a slow death. Are there folks out there who think they have a future? It seems a sure bet that their stock will continue to drop and assume that is why the hedge funds felt no risk shorting them?

Indeed, hedges were so sure of their demise they overbeat the dead horse. Reddit necromancy'd it back from the dead and it started eating the hedge funds.

 

[PingSpike]

I feel like no matter what happens the lawsuits that come out of this are going to be bananas.

I think they've calculated that they're more likely to survive the lawsuits and SEC investigations than they are going to be able to survive the shorts blowing up in their face. And they're probably right, a few campaign contributions will probably buy them out of the worst of it.

 

[theeedude]

I think they've calculated that they're more likely to survive the lawsuits and SEC investigations than they are going to be able to survive the shorts blowing up in their face. And they're probably right, a few campaign contributions will probably buy them out of the worst of it.

Since users don't pay commissions, RH makes its money from hedge funds giving them kickbacks for front running orders. So when you buy a stock, RH will route it to Citadel, which will buy it first, then sell to you for a bit more. Citadel pays RH for this, they are RH's paying customer, not the users. So if RH is doing what's right for its customers, screwing its users.

 

[zinfamous]

I'm assuming that was the stock price at one point. Out of curiosity I took a look at the last 5 days of trading and the stock is comically volatile.

9:58am today: 468/share
11:18: 126/share
11:42: 243/share
Now: 207

The higher the stock stays, the more screwed everyone shorting GME is

I got it. My first thought from the post only giving that number was that it was some reference to a regulatory code--like "a 418 was just issued! Run!"

I didn't know what "a 418" was. ....and for good reason.

 

[fskimospy]

Since users don't pay commissions, RH makes its money from hedge funds giving them kickbacks for front running orders. So when you buy a stock, RH will route it to Citadel, which will buy it first, then sell to you for a bit more. Citadel pays RH for this, they are RH's paying customer, not the users. So if RH is doing what's right for its customers, screwing its users.

I think they are providing overall user data but I doubt their business model is based on front running as that’s a crime.

 

[WelshBloke]

I sincerely doubt the average person buying GME stock is doing it with the intention of losing money.

I'm kinda that. I bought just for a laugh and a fuck you!

Disclaimer: I'm only in for a few hundred quid, plus I fundamentally disagree with hedge funds (and pretty much the power of stocks)

 

[theeedude]

I think they are providing overall user data but I doubt their business model is based on front running as that’s a crime.

Here's how Robinhood is raking in record cash on customer trades — despite making it free

Robinhood is raking in more money than ever on customer trades as new investors flood the stock market during the pandemic.

www.cnbc.com

Market makers, such as Citadel Securities or Virtu, pay e-brokers like Robinhood for the right to execute customer trades. The broker is then paid a small fee for the shares that are routed, which can add up to millions when customers trade as actively as they have this year.

Citadel is not paying Robinhood to execute trades for no reason. I am sure it's structured in a legal way, but the effect is the same, they skim off those free trades and pay Robinhood for the privilege. So when Citadel, which is the source of RH's revenue is short and RH's users who don't pay commissions are long a stock, RH is going to serve its actual paying customer.

 

[[DHT]Osiris]

Because I care.

Can you spare a minute to help this campaign?

Sue Robinhood for their illegal actions of manipulating the Stock market

chng.it

 

[sdifox]

Here's how Robinhood is raking in record cash on customer trades — despite making it free

Robinhood is raking in more money than ever on customer trades as new investors flood the stock market during the pandemic.

www.cnbc.com

Citadel is not paying Robinhood to execute trades for no reason. I am sure it's structured in a legal way, but the effect is the same, they skim off those free trades and pay Robinhood for the privilege. So when Citadel, which is the source of RH's revenue is short and RH's users who don't pay commissions are long a stock, RH is going to serve its actual paying customer.

This is a concerted effort by the brokerages... That is called RICO violation. Biden should have Berney head an investigation into this.