Here’s the main story, basically the establishment types took big shorts on Gamestop, some groups in Reddit realized how exposed they were and rallied to push the prices higher.
In response it seems the groups are being wiped off the internet under the guise of combating hate speech.
No matter what side of the political spectrum you’re on, we can all thank Google, Apple, and Amazon AWS for paving the way for this kind of behavior to become acceptable and allowed. Unbelievable.
This guy lays it out pretty well in a way everyone (I hope) can understand.
Fascinating. Def gonna keep an eye on this
Looks like it’s global too, not just NYSE. All up 130% to 320%.
Yeah, hedge funds accept outside capital. Melvin Capital, Point72, etc. aren’t prop trading firms.
Not that that makes guys like Gabe Plotkin and Steve Cohen particularly sympathetic figures, but they’re pretty much playing with house money.
This was used by the journalists/activists in GamerGate as well. It’s amazing how prophetic that incident turned out to be.
Let’s be honest, the stuff that got posted into that Discord was filthy. Was that the true reason? Perhaps not, but they also clearly violated the T&C of the Discord service.
Are others allowed to get away with it? Sure, but when you’re the “it” thing, you get attention.
For the record as a spectator, I think what r/WallStreetBets are doing is quite groundbreaking and I support it.
The big guys were trying to drive down the price of a company by selling high, driving the price down and possibly buying it
back for pennies. Evil and immoral. The little guy always looses.
The purpose of stock is to gain investors to build a business.
The business is to produce a product. The profit goes to dividends.
If the average Joe, joined the game and outsmarted the big guys, more power to then. It doesn’t matter to me. I’m not invested.
I don’t think that’s what was happening, though I could be wrong. I think the big guys were shorting the company because it’s basically like Blockbuster in 2005 with no business plan out of it.
I don’t understand much of this but, some has to have dreams of investing in the company, panic and sell it at loss. Great. They held onto it and won.
For every gain a big boy gets, a working class shlub takes a loss. Last I checked, im a working class shlub or worse. I’m a parasite
Living off of them selling their kids English and I’m helping the local economy.
I don’t understand what you’re trying to say.
That’s not how stocks work.
That’s why I don’t play. I’ve seen some friends do well from the nineties to the 00’s as day traders but apparently things went down hill.
There was a chain of Banks with a small banking service counter. The rest of the bank was full of chairs and TVs tuned to stock channels.
Many of those people made money by subdividing and selling off family farms and land down south. Then they became day traders.
So enlighten me. If someone sells their stock low, Don’t they loose money. How do stocks work?
This is called a short squeeze.
The guys over at Reddit noticed “The percentage of the GameStop float sold short is at 139.57%, the highest level for any equity worldwide” Selling short means borrowing stocks, selling them off immediately with the promise to buy back (if as hoped the price drops) and pocketing the difference.
The guys a Reddit en mass pushed the stock price up, meaning if it was 10 dollars and went up to 100 to buy back the short would cost 100 dollars and the person who made the short loses 90 dollars and pushes the price up more since they are buying.
This is what happened to a few big firms whose liability was growing folded. Doesn’t mean its a good time to invest in Gamestop, unless there are a lot of other finance houses that will be forced to fold and buy back their shorts, because eventually the stock price will drop back down like a rock.
The big boys were shorting the stock into penny stock land. It was a deliberate move. They got caught being stoopid and they paid for it…if they sold. Let’s see where GME is in a few weeks.
They are convinced when option contracts come due Friday, that the funds will be woefully unprotected and unable to do anything to cover. I’ve been entertained reading their comradery around holding out through the weekend. Either way by next week I think this will be over.
Dipped its toe above 500 in pre-market.
Curiously the ones that seem to make a big part their business selling trade analytics data to the very funds that this group is trying to battle happen to also be the brokerages that are suspending trading of GME and associated options contracts for retail investors. 
Gee, I wonder if the rules will be bent for the megarich. 
