The corollary seems to be that citizen and retail investors have teamed up to take on big funds. This is a classic underdog uprising tale that just cannot be passed up.
This couldn't be further from the truth.
The combined buying power of Reddit investors would be no more than 30 - 40 million dollars. Piling on some citizen investors on Robinhood, I surmise that the total investment power couldn't surpass $200 million dollars if they tried their best.
Think about it - Most people on Robin Hood only invest 10s, or hundreds of dollars, let alone thousands. Even aggressive day traders only play with $25,000 at a time. It would take a massive army of hundreds of thousands to get the kind of buying power that could take on the big funds.
Here are some questions to ask;
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Why are specific hedge funds being targeted?
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Why are government officials suddenly interested in regulating the stock market when exploitative behavior has been happening like this for decades?
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Why is this happening while Biden is in office?
This is a well-orchestrated, engineered, and versed effort to collapse and siphon certain questionable funds, with supreme precision. The targeted funds are schemes that launder money (AMC is owned by CCP Wanda, for example) which would normally be too difficult to take down and might take years.
I have a heavy suspicion that White Hats are doing this. This isn't a coincidence.
This is what I secretly suspect too.
People don’t understand that these hedgefunds can literally leverage thier assets by a 100x.
What this means?
1 billion will allow you to borrow and use 100 billion to trade with.
10 billion allows you to borrow 1 trillion.
While the best that retail investors can do is twice thier money.
Trillions of dollars are moved in stock markets every DAY.
In comparison, political donations total was around 30-40 billion for the most important presidential and congressional campaign that literally decided people’s lives.
Even if we gather all the money that WSB and allies, a forum with originally 2 million people(now 6 million) has, after leverage, would it even reach 100 billion?
A disorganized 100 billion vs a coordinated Trillion dollars.
Plus the trillion dollar groups have access to a massive amount of data about the 100 billion group, giving them an unfair advantage.
And somehow the coordinated trillion dollars group is losing to the disorganized 100 billion dollars group?
Retail investors simply don’t have the money and leverage to compete with institutional investors which is why they always get pummeled
It was especially suspicious when all the retail broker firms suspended buying GME and it fell but didn’t immediately crash to sub 100s, then went back up.
It means that whoever is really proping up GME are not retail investors but institutional investors because retail investors had thier infrastructure frozen, and thus couldn’t buy GME to keep proping it up.
Logically if it was retail investors proping it up, it would have immediate crashed into the sub 100s level, because all hedgefunds had to do was have hedge fund A sell some GME to hedge fund B and then hedge fund B sell those extract same GME shares back to hedge fund A at a lower price and repeat over and over again until it goes crashes, since no one can actually buy the stocks.
But it didn’t because there was someone who actually could and did buy them, so much that it went back up.
I suspect that some group is proping up GME and using WSB as a front as an explaination for why GME is going up. As a former frequent autist at WSB, WSB has a lot of garbage along with rough diamonds.
You have to realize that ANY stock can go up, and suddenly there will be posts on it on WSB. It would be difficult to determine if WSB caused the stock to go up or the stock going up caused WSB to mention it.