Watch the film The Big Short to understand the market dynamics that allowed for this to occur.
Hedge funds bet millions of dollars against companies like Game Stop and AMC. They did so using what they call synthetic shares. Synthetic shares is euphemistic language for fraudulent shares. They are shares that don't exist on the ledger but are traded as if they do. The hedge funds got away with this by picking weaker companies to short sell into bankruptcy, thereby assuring that they would never actually have to worry about their over leveraged positions.
With Game Stop, they thought their same playbook would work. They bet against GME with millions of fraudulent shares. They have short positions that are in excess of the total supply of real shares. They got reckless. They never thought the Ape Army would show up and beat them at their own game.
The shorts must cover. This is the absolute law of the market. Since Game Stop is now a billion dollar company, it is nowhere near bankruptcy. The only thing saving the hedge funds at this point is the fact that they haven't been margin called on their short positions. The big institutional insurance brokers like Black Rock and Vanguard are pulling massive strings to manipulate the market so that the exposure of the massive fraud taking place with GME and AMC doesn't go mainstream.
It is inevitable though. The ceiling on the price for a share is quite literally infinite. When the hedge funds are forced to buy back their position in fraudulent shares, the mother of all short squeezes will commence. A single share at that point may rise to the tune of $10,000, $100,000 or even $1,000,000. This is why there is such a panic in the market to go after investors like Roaring Kitty. They are desperately trying to keep a lid on this situation. Game Stop will quite literally end the entire corrupt stock market.
It is no coincidence either that the name of this stonk is Game Stop.
Watched The Big Short a whole lot during the GME/AMC stuff going on in 2021.
The new movie, 'Dumb Money' (IMO) is a bit more prescient (specifically) about GME and Roaring Kitty / Robbin Hood Trade halting / Melvin Capitol going down / Kenny Griffin and his synthetic shares, etc....
BTW, Kenny G was behind the crash of '87. A lot of the 2008 crash and here again in 2021+......
That dude is ground zero for a lot of market corruption.
Watch the film The Big Short to understand the market dynamics that allowed for this to occur.
Hedge funds bet millions of dollars against companies like Game Stop and AMC. They did so using what they call synthetic shares. Synthetic shares is euphemistic language for fraudulent shares. They are shares that don't exist on the ledger but are traded as if they do. The hedge funds got away with this by picking weaker companies to short sell into bankruptcy, thereby assuring that they would never actually have to worry about their over leveraged positions.
With Game Stop, they thought their same playbook would work. They bet against GME with millions of fraudulent shares. They have short positions that are in excess of the total supply of real shares. They got reckless. They never thought the Ape Army would show up and beat them at their own game.
The shorts must cover. This is the absolute law of the market. Since Game Stop is now a billion dollar company, it is nowhere near bankruptcy. The only thing saving the hedge funds at this point is the fact that they haven't been margin called on their short positions. The big institutional insurance brokers like Black Rock and Vanguard are pulling massive strings to manipulate the market so that the exposure of the massive fraud taking place with GME and AMC doesn't go mainstream.
It is inevitable though. The ceiling on the price for a share is quite literally infinite. When the hedge funds are forced to buy back their position in fraudulent shares, the mother of all short squeezes will commence. A single share at that point may rise to the tune of $10,000, $100,000 or even $1,000,000. This is why there is such a panic in the market to go after investors like Roaring Kitty. They are desperately trying to keep a lid on this situation. Game Stop will quite literally end the entire corrupt stock market.
It is no coincidence either that the name of this stonk is Game Stop.
u/#q3872
Watched The Big Short a whole lot during the GME/AMC stuff going on in 2021.
The new movie, 'Dumb Money' (IMO) is a bit more prescient (specifically) about GME and Roaring Kitty / Robbin Hood Trade halting / Melvin Capitol going down / Kenny Griffin and his synthetic shares, etc....
BTW, Kenny G was behind the crash of '87. A lot of the 2008 crash and here again in 2021+......
That dude is ground zero for a lot of market corruption.