This is undoubtedly a sticky-worthy happening. Overview:
Louis Rossmann: Why MSM's slander of /r/wallstreetbets pisses me off regarding GME
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TLDR reddit investors dumped money into a cheap $4 stock that was heavily shorted (hedge funds borrowed against it gambling it would keep going down). The redditors made it go up, causing hedge funds to lose money. Thus created a domino effect where banks forced more shorts to pay up their losses, driving up the price more, which in turn forces more banks to call in debts, and it snowballs with no end in sight. It was almost $400 the last I looked and going up and down constantly as people cash out rich, and banks force more buys. Blaming reddit is a scapegoat. They don't have the money, but their spark made a bunch of banks do this and the system doesn't want to admit their computers are easily exploited by a bunch of autists.
So I haven't studied this at all, just wondering though - people are saying there is no way individual investors have enough purchase power to move the share price this much, pointing to some whale(s) involved behind the scenes. Do you know if this might be correct? (Sounds reasonable to me given the massive wealth disparity in the current economy)
The scapegoaters are saying the people active posting in Wall street bets are billionaires out to manipulate the market. It's a dumb cover story when you actually look at it.
Wall street bets has some users that are investing and holding. This is normal. They noticed and talked about how the stock was floated at a 140% short rate - impossible to recover if the stock goes upbad. So what they did was invest and hold to stop that from happening and watch their investments grow as the guilty parties had to pay more to cover the gloat when demand was literally greater than supply. Basic 100 course economics.
The system doesn't want to admit it's broken and easily manipulated by the super rich who do this all the time. Soros has actually crashed currencies with schemes like this! So it's terribly dangerous got TPTB to allow "little people" to realize they can control the beast too, and the automated systems and naked shorting that caused this squeeze won't be mentioned. The SEC never goes after them.
I've read that some institutional investors started buying the stock. No indication on trade size, though.
This leads me to thinking, if autists can do this using Reddit to coordinate, rich connected people have been doing this for lot longer and a larger scale.
Ding ding ding
This will change Wall Street shorting forever. For one, the shorts will not go public with their thesis. And two, it changed the bank's risk tolerance so they won't short as much.
They really hate it when you steal and expose their grifts.
Martin Shkreli.jpg
Who wants to bet some reddit autist will go to jail for this via SEC.
Exactly, this is the scam that was intended to be exposed, now they're crying "Regulation"! It's hilarious.
Thanks!