Discussion Game Stop Stock Short Squeeze

[Wreckem]

not as bad as the shorters. most you can lose as a stock buyer is the entire value of the stock. GME is not going bankrupt now lol. If you shorted GME, that is on you.

Oh yeah the shorters are fucked. They are down what $8billion just today. Around $20billion for the month.

 

[WelshBloke]

not as bad as the shorters. most you can lose as a stock buyer is the entire value of the stock. GME is not going bankrupt now lol. If you shorted GME, that is on you.

Yup. This is redistributing wealth from very rich hedge fund members to retail traders (some of whom maybe stick savvy and some who aren't).

 

[Wreckem]

Yup. This is redistributing wealth from very rich hedge fund members to retail traders (some of whom maybe stick savvy and some who aren't).

And it’s also going to cost some retailer traders their life savings. The hedge funds will survive albeit heads will roll as they will be significantly lighter in the pocket book. There will likely be more than a few retail traders that kill them selves because they get stuck with the empty bag when all is said and done.

 

[fskimospy]

What if it isn't?

Then it isn’t. What I’m saying is that the possibility is depressingly high and the guy making that post raised a number of good points.

It’s clear that a number of people on WSB pushing this are sophisticated investors with significant knowledge of how the markets work. Now maybe they are doing this for the lulz, and maybe they are doing this for the memes or for justice, or maybe this just happened to work out really well for them and they are going to take their compatriots for a ride.

 

[quikah]

This seems like a depressingly likely answer to how/why this is happening and how it will end.

https://twitter.com/x/status/1355153781063905281

This about 50% BS. You don't need to be an investment banker to know about shorting or options or whatever. My wife does it, she is a nurse. Just follow any investment group for more than a week and you will understand it. You can go to yahoo finance and look up the % shares short and all the options data.

 

[WelshBloke]

But what if it’s exactly that.

Also if a couple of people pumping stocks on reddit can cause this sort of problems then its good evidence that the system is totally broken.

 

[WelshBloke]

Then it isn’t. What I’m saying is that the possibility is depressingly high and the guy making that post raised a number of good points.

It’s clear that a number of people on WSB pushing this are sophisticated investors with significant knowledge of how the markets work. Now maybe they are doing this for the lulz, and maybe they are doing this for the memes or for justice, or maybe this just happened to work out really well for them and they are going to take their compatriots for a ride.

The majority of the wealth will be flowing from the hedge funds not the retail traders. I'm ok with that.

 

[WelshBloke]

And it’s also going to cost some retailer traders their life savings. The hedge funds will survive. There will likely be more than a few retail traders that kill them selves because they get stuck with the empty bag when all is said and done.

The stock market does that to retail traders all the time. The fact is that no one cared until very rich people started to lose money.

 

[fskimospy]

Also if a couple of people pumping stocks on reddit can cause this sort of problems then its good evidence that the system is totally broken.

Not so sure about that. I doubt this can be regularly repeated.

 

[Fenixgoon]

Also if a couple of people pumping stocks on reddit can cause this sort of problems then its good evidence that the system is totally broken.

1000000000%

 

[WelshBloke]

Not so sure about that. I doubt this can be regularly repeated.

Nothing particularly clever was done. If the rules aren't changed why won't this happen again?

 

[fskimospy]

The stock market does that to retail traders all the time. The fact is that no one cared until very rich people started to lose money.

Right, nobody’s saying that the way the stock market it set up now is good though! What we are saying is that there’s a decent chance that this is just a different set of rich assholes exploiting people.

I couldn’t care less if these hedge funds go broke. Fuck them. I do care that a lot of regular people might get fucked too though.

 

[sdifox]

Not so sure about that. I doubt this can be regularly repeated.

what do you mean? shorters do this daily, why can't they be beaten the same way? Obviously you can only target one stock at a time as a small operator, but if everyone follow through, you can hit them where it hurts.

all you need is to look at the short to float ratio and talk to everyone to buy into one stock. Distributed Hedge Fund Whack-a-Mole.

 

[Wreckem]

[

Not so sure about that. I doubt this can be regularly repeated.

They are trying on about dozen stocks right now. They aren’t as successful with those because GME was primed for this the others not as much. There will probably be a few that rocket up and collapse though.

 

[fskimospy]

Nothing particularly clever was done. If the rules aren't changed why won't this happen again?

Funds will re-evaluate risk in their positions in light of this and distribute it differently. As to why some memes capture the public imagination who knows. People who make one are rarely able to make another though.

 

[WelshBloke]

[

They are trying on about dozen stocks right now. They aren’t as successful with those because GME was primed for this the others not as much.

They also need to stay a bit more focused.

 

[fskimospy]

what do you mean? shorters do this daily, why can't they be beaten the same way? Obviously you can only target one stock at a time as a small operator, but if everyone follow through, you can hit them where it hurts.

all you need is to look at the short to float ratio and talk to everyone to buy into one stock.

Because when a trading strategy is successful counter parties shift their strategy in response.

 

[[DHT]Osiris]

Not so sure about that. I doubt this can be regularly repeated.

Literally anything that's shorted over 100% can have this happen. As others have said, there's a dozen other stocks being targeted actively, and I think Silver's another very probable target for this. And that's after a BUNCH of shorts were dumped over the last few days in a fire sale.

 

[WelshBloke]

Funds will re-evaluate risk in their positions in light of this and distribute it differently. As to why some memes capture the public imagination who knows. People who make one are rarely able to make another though.

Well if you think that hedge funds will reign in their arrogance and greed because of this it would be a good thing. I'm not so certain that they will though.

 

[fskimospy]

Literally anything that's shorted over 100% can have this happen. As others have said, there's a dozen other stocks being targeted actively, and I think Silver's another very probable target for this. And that's after a BUNCH of shorts were dumped over the last few days in a fire sale.

Well if you're right then we will see an identical scenario play out again and again over the coming months and years. I personally doubt we will see this.

 

[fskimospy]

Well if you think that hedge funds will reign in their arrogance and greed because of this it would be a good thing. I'm not so certain that they will though.

Oh I think they will continue to be arrogant and shitty, just in a way that makes them less vulnerable to things like this.

 

[[DHT]Osiris]

Well if you're right then we will see an identical scenario play out again and again over the coming months and years. I personally doubt we will see this.

Mind you, two things should end up happening, a) hedges will stop doing this to protect themselves until everything quiets down and they think they can get away with it again, or b) they get regulated into forced behavior.

 

[WelshBloke]

Oh I think they will continue to be arrogant and shitty, just in a way that makes them less vulnerable to things like this.

If they change their behaviour it'll be because regulations are brought in.

Then you can look at this as a few guys on reddit managed to bring in regulations for the stock market if you like.

 

[sdifox]

If they change their behaviour it'll be because regulations are brought in.

Then you can look at this as a few guys on reddit managed to bring in regulations for the stock market if you like.

Yeah, ultimately retail traders are just sick and tired of the bull shit big boys pull while SEC feigns ignorance. This marks the beginning of retail stock trader seeing there is a way to fight back, and once they taste blood...

 

[digiram]

Nothing particularly clever was done. If the rules aren't changed why won't this happen again?

What rules can they really change which won't affect the free market. What ever it is better be the same rules the hedges have to play by or there will be a major reaction.