Then the anons on reddit got wind of their evil manipulations, came up with a way to screw the greedy manipulators by using the Short sell strategy against them. This could only be done in great numbers and only if they could all work in cahoots, which the internet now allows. If this strategy works, they will have out-manipulated the manipulators and can do this to WallStreet over and over, throwing off the control collars of the 1%. That is returning power to the people. Is that correct, Stockanons?
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It is called selling-short.
You can buy stock if you think it is going to go up. Buy low sell high.
But if you think a stock is going to go down, you can short sell it.
That means you sell stock that you don't own, but with a commitment to buy it back. So you sell shares when the stock price is at 100. Then when the stock goes down to 50, you buy them back, and you get to keep the difference.
The catch is, that if the stock price goes up, then you have to buy the shares back at a more expensive price.
??
Honestly, whats happening right now is far beyond a bunch of reddit renegades could every pull off. I can see the White Hats orchestrating this but using the reddit as a front so they can throw the media off guard and into confusion not knowing how to report it, or what their script is.
But yeah, the wall street naked short sellers will get a thrashing of their lives and probably keep doubling down until they bring the whole house down.
It was reddit though, they got the price up to like $70 and that's when everyone else started to notice. Then everyone else joining in got it passed $100 and that's when Elon Musk tweeted about it and things went wild.
You have to understand that reddit has been working on this for quite some time, not just this past week.
Not quite, no....
So When Exactly do these hedgefund pirates have to pony up?
K so when you're shorting, you pay a borrow fee (the interest I mentioned in my previous comment) which can change from day to day. Right now that fee on $GME is between 20-80%. Which is as high or higher than most credit cards. Per day. The longer you have to hold your position, the more it costs. Now imagine you're a multi-billion-dollar hedge fund with millions of shorts entered.
Now you understand how they lost $5 billion dollars in a single day.
Eventually it either costs too much to maintain, and you have to close your position for a loss, or you go bankrupt.
Not only that, but there's rumors that other hedge funds are still submitting shorts on GME against Melvin and Citadel. They're not only fighting average Joes online but also fighting off other hedge funds and investment groups.
Today is significant as it's a day when lots of these 'options' expire. Likewise, Monday will also be very significant. However, it could take weeks or even months to finish the short squeeze fully. Read up on the short squeeze of 2008 with VW for some similarities: https://www.autoweek.com/news/industry-news/a35340727/heres-how-the-gamestop-short-squeeze-is-like-the-vw-squeeze-of-2008/
Thanks for the info
Isn't this kind of like what happened in the movie Wall Street where they basically manipulated the stock to force Gekko to sell his shares? Or is that something different?
This is, banks breaking the law for hedge fund buddies. Then getting caught. ... This is: 1. They borrowed shares that don't exist. At 23% interest from a bank. 2. They now have to buy real shares that don't exist or liquidate their business. 3. They get proper fucked.
So could someone buy one share of Gamestop for $500 now and sell it for $5000 if the anons and frens pull this off?
Yes but once the sell off starts the stock should go down pretty quickly. In theory the sell off should take days because of all the outstanding shorts
I fucking hate pikey's
You can borrow stock and sell it, but you have to pay it back at a later date at whatever price it's trading at. The hedge fund guys did this to gamestop figuring it was going to fail, some anons figured this out apparently and bought the stock up right before they have to pay back what they borrowed and are holding the stock to artificially keep the price high.
the biggest part is, these small guys figured out the hedges were doing this with more than 100% of the total actual stocks that exist. which means that much of these short positions were what they call "naked", meaning much of these stocks actually did not exist.
Correct. The whole scam is out and will be over soon
How do you think it will end?
Some hedge funds go bankrupt all the way to half the investment banks in the country going under as they become liable to pay back the value with money they don't have. (maybe even the Fed.)
In other words, to quote the Nuge: https://youtu.be/hzFpiW5vHrc?t=35
Does anyone know how this will affect 401ks?
Negatively
It's going to show 401Ks are just a pyramid scheme. Once the rabbit is out of the hat... Think about it, can't take money out early without massive "fines". It's not "fines" it's they remove the inflated value and give you the actual value. They call it a "fine & penalties" so you think it's your fault rather than just money moving magic.
Everything may take a shit when this blows up, actually it likely will because the cats out of the bag.
Shorting:
Selling a rain check on a stock.
Yes! Greedy ass hedge fund managers are shorting game stop in a coordinated effort. This brings prices down with an already volatile company. They were trying to bankrupt GameStop so they could scrape up penny stocks to repay their shorts.
Now as long as all the retards hold together the hedgies will have to buy the stock at whatever price the retards are asking for it.
they were not trying to bankrupt gamestop, they were betting gamestop is going bankrupt.
By tanking the price of shares I believe they were trying to bankrupt GameStop. Moving multi-millions of dollars out of GameStop value into their pockets constitutes attempting to bankrupt them, to me anyway
In light of the recent sea shanty trend, someone wrote one for GME.
https://www.youtube.com/watch?v=1xPmR4aNgkA
GameStop, GME, is struggling. Banks are betting on bankruptcy. .. they shorted the stock, then they naked shorted the stock. .... Naked short - borrowing shares that don't exist to sell short. ... all this is - someone reads their (hedge fund people) public documents on asset holds. Did the math. Realized GME was naked. Spent $750,000 to buy up shares slowly over 6 months, as to not spook them, then advertised his plan. People agreed to run the stock up. Now, the hedge company is required to buy back shares or be fined due to contract with bank. ... We are at the point of 7 other hedge firms are trying to bailout this one. They literally can drag this out for 2 weeks. Only way this is working is people are holding for $5,000 a share. If no one flinches everyone gets paid.
except the hedges backing melvin
Did you see the elite douce on tv yesterday cursing and losing it, They know what's coming and they can do nothing about it, unless they want to wake even more normies up, At this point, I wouldn't put it pass them though!
It sounds like yet another form of overspeculation.