I don't believe the run up was caused by hedgies in my view. I also don't believe Roaring Kitty was the domino that started the run up. Here's why I say that.

For the entire month of April GME had danced in between $10-11.50 or so. No real movement. In fact one could say it was being driven down from the month prior where it spent most of its time in the $15 range. As April ended it fell into the $10 range.

On 5/1 it opened at $11.03 and by 5/10 it closed that Friday at $17.46.

It was clearly on an upward trend and breakout 10 days into May.

This is where I believe an opportunity was seized.

(This is all speculation and opinion on my behalf from what I've been able to see. So take it for what it's worth)

Keep in mind a firm doesn't simply decide to dilute their stock in order to raise funds. It's planned well in advance and for a purpose. It also doesn't do it when the stock is in a weak position. They want to raise as much funds as possible given that a dilution will do exactly that, dilute the price of the stock.

So GME knew it was going to raise cash and wanted to do it at a time when it was best for the firm while also hurting it's stock holders the least.

As forward momentum was noticed a key player decided to strike.

On 5/12 RoaringKitty decided to come out of hiding after 3 years. So Kitty didn't drop the first domino this go-round but instead used his clout to push the momentum.

I want you to imagine for a second being in Kitty's shoes. You've stayed quiet for 3 years but likely knew you would re-emerge but only when the time was right. You want it to be meaningful. As meaningful as you are to the community. Why? Well because you understand your impact and the power you wield. You also don't want it wasted. You don't want to go the way of the boy who cried wolf.

5/12 was a Sunday and Kitty begins to prep the GME community by dropping his first post in 3 years just in time to kick off the new trading week on the heels of 10 days of upward trend.

5/17 (Friday pre-market) Game Stop announces a new stock offering. GME closes on Friday at $21.30.

This new stock offering is likely to be finished by Monday and GME stands to raise $900M cash. If this would have been done just 30 days prior it would have only raised $450M IF, IF the stock stayed at the going rate of $11 then. That would have likely not been the case since, presumably, the $11 stock would have been beaten up as a result of that announcement. Likely would have cut itself in half which would have yielded somewhere around $250M.

That would have meant $650M lost cash revenue opportunity. Absolutely massive!

What the run up and subsequent further push by RoaringKitty did, in effect, was to cause the hedgies to expend resources to suppress the stock from a high of $57 during that run up down to $22 only to have GME raise $900M while they were struggling to suppress it.

This was and continues to be well coordinated in my opinion.

It is likely that any dilution and damage to the stock price from the stock offering has already been inflicted. I could be wrong but I think this thing still has legs.

Also keep in mind that the fact that Game Stop has just over $2 billion dollars in cash reserves places the stock at the very lowest cash price of $7.50.

Meaning that the company, by definition, can not go bankrupt. It is cash rich with zero debt therefore any short below that price is fucked. Game Stop is going to post profits the rest of the year from it's business and that $2B nets them $2M a week just on earned interest. They are going to continue to build that cash reserve and continue to push that $7.50 higher and as a result push more and more short sellers out of the game. And by push them out I mean placing them in a position to have to cover their short positions.

Was the run up done by hedgies? Not in my opinion.

Was the draw down done by the hedgies? Likely. And at a great cost.

Did the draw down work in their favor? Not in the slightest.

I don't believe the run up was caused by hedgies in my view. I also don't believe Roaring Kitty was the domino that started the run up. Here's why I say that.

For the entire month of April GME had danced in between $10-11.50 or so. No real movement. In fact one could say it was being driven down from the month prior where it spent most of its time in the $15 range. As April ended it fell into the $10 range.

On 5/1 it opened at $11.03 and by 5/10 it closed that Friday at $17.46.

It was clearly on an upward trend and breakout 10 days into May.

This is where I believe an opportunity was seized.

(This is all speculation and opinion on my behalf from what I've been able to see. So take it for what it's worth)

Keep in mind a firm doesn't simply decide to dilute their stock in order to raise funds. It's planned well in advance and for a purpose. It also doesn't do it when the stock is in a weak position. They want to raise as much funds as possible given that a dilution will do exactly that, dilute the price of the stock.

So GME knew it was going to raise cash and wanted to do it at a time when it was best for the firm while also hurting it's stock holders the least.

As forward momentum was noticed a key player decided to strike.

On 5/12 RoaringKitty decided to come out of hiding after 3 years. So Kitty didn't drop the first domino this go-round but instead used his clout to push the momentum.

I want you to imagine for a second being in Kitty's shoes. You've stayed quiet for 3 years but likely knew you would re-emerge but only when the time was right. You want it to be meaningful. As meaningful as you are to the community. Why? Well because you understand your impact and the power you wield. You also don't want it wasted. You don't want to go the way of the boy who cried wolf.

5/12 was a Sunday and Kitty begins to prep the GME community by dropping his first post in 3 years just in time to kick off the new trading week on the heels of 10 days of upward trend.

5/17 (Friday pre-market) Game Stop announces a new stock offering. GME closes on Friday at $21.30.

This new stock offering is likely to be finished by Monday and GME stands to raise $900M cash. If this would have been done just 30 days prior it would have only raised $450M IF, IF the stock stayed at the going rate of $11 then. That would have likely not been the case since, presumably, the $11 stock would have been beaten up as a result of that announcement. Likely would have cut itself in half which would have yielded somewhere around $250M.

That would have meant $650M lost cash revenue opportunity. Absolutely massive!

What the run up and subsequent further push by RoaringKitty did, in effect, was to cause the hedgies to expend resources to suppress the stock from a high of $57 during that run up down to $22 only to have GME raise $900M while they were struggling to suppress it.

This was and continues to be well coordinated in my opinion.

It is likely that any dilution and damage to the stock price from the stock offering has already been inflicted. I could be wrong but I think this thing still has legs.

Also keep in mind that the fact that Game Stop has just over $2 billion dollars in cash reserves places the stock at the very lowest cash price of $7.50.

Meaning that the company, by definition, can not go bankrupt. It is cash rich with zero debt therefore any short below that price is fucked. Game Stop is going to post profits the rest of the year from it's business and that $2B nets the $2M a week just on earned interest. They are going to continue to build that cash reserve and continue to push that $7.50 higher and as a result push more and more short sellers out of the game. And by push them out I mean placing them in a position to have to cover their short positions.

Was the run up done by hedgies? Not in my opinion.

Was the draw down done by the hedgies? Likely. And at a great cost.

Did the draw down work in their favor? Not in the slightest.