My kid (25) voted for Qidan. I respected his right to choose. Then he bought GME after following “DeepFuckingValue” on Reddit. He panicked when it dipped and sold 90 of his 100 shares and (only) doubled his investment in a month. He was bummed. He was angered when the powers that be stopped people from buying. First we talked about protecting your capital is the #1 rule. Then we talked about the forces at work and the battle for hearts and minds. He took a few red pills. I explained my red pill was 911. Who bought millions of dollars in puts on the airline stocks the week before? They made billions! Plus the free falling twin towers not to mention the 3rd building (hardened for a nuclear strike) going down several days later. I lost friends over that. They could not stomach the red pill. I asked him if he saw the irony in someone named DeepFuckingValue buying a junk company like GME. The only deep value is knowing a huge short squeeze is coming. Then, I really baked his noodle when I asked him, “who do you threw the billions at GME to force that short squeeze?” That was a killer whale taking out the apex predator sharks (hedge funds). Do the math. No way millions of little guys outgunned the hedge funds. He said wow Dad that’s a lot to think about. Then he said, do you always notice stuff like this? I said, my job is to leave the world a better place then I found it for you and all those I love. So yes, I do.
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I know next to nothing about the GME squeeze. I know A LOT about short squeezes, after having made and lost many thousands of dollars playing the market from 1999-2002. Go read deepcapture.com if you want an education. I was waaay long until March of 2000 then went waaay short. I’ve bought calls and puts and seen how the pricing varies based on time and volatility.
I made friends with a hedge fund manager who ran a “fund of funds”. When a fund wants to go long, they slowly build their positions over time. They do not buy all at once. The more they control the harder it becomes to out-perform because just getting the $$ deployed moves the market.
But, I know enough of the story from what I’ve seen here and from talking to my son to know the general story is not true. I also know a lot about financial analysis of a business to know that GME is absurdly overvalued. They would be lucky to do an IPO and raise capital but in reality the insiders will all dump their shares at the next opportunity for insiders to sell.
Cool, I'll give it a look. I recommend doing the same by actually going to reddit.com/r/wallstreetbets and do a little sleuthing around to fully understand this is not insider trading in the slightest. Some other funds, like Blackwater, have taken advantage of this situation, and I'm sure there are others, but seriously, do the research on this one to understand how this is WAYYYY different than any other squeeze in history. This is much more 99% vs 1% than a lot of media is putting on.
Is this just Patrick Byrnes personal blog or something?
It’s a little of everything from him but mostly his epic battle for company Overstock.com against naked short sellers. Probably a lot of naked shorts on GME
Yeah 140% float probably has a LOT of naked shorts. Someone did the math from January's Failed-to-delivers, and GME had 1.1 million, so make of that what you will.
EDIT: DECEMBER'S DATA, NOT JANUARY! we're still in January (duh!), so that was last months FTD
https://www.reddit.com/r/wallstreetbets/comments/l97ykd/the_real_reason_wall_street_is_terrified_of_the
There is the post in particular if you wanna read it yourself. Obviously take all things reddit with your own discretion in mind, but still VERY informative nonetheless.