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The Battle of GameStop

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Re: The Battle of GameStop

#31

Post by 0b01 »

IIAOPSW wrote: post #15

I've wrote this elsewhere. The thing that's clicked for me after reading the comments on wsb is that populism, amplified by the modern internet, is going to radically change the finance world in a similar way to how it radically changed our political landscape. These people aren't just investing in GME to enrich themselves. They are doing it to spite the people who they percieve as rigging the game. They are doing it…

In fact, Citadel Securities has gained a lot money from the $GME event.

Citadel Securities pays tens of millions of dollars for Robinhood order flow.

Re: The Battle of GameStop

#32

Post by admax88q »

IIAOPSW wrote: post #15

I've wrote this elsewhere. The thing that's clicked for me after reading the comments on wsb is that populism, amplified by the modern internet, is going to radically change the finance world in a similar way to how it radically changed our political landscape. These people aren't just investing in GME to enrich themselves. They are doing it to spite the people who they percieve as rigging the game. They are doing it…

I think this is more like beanie babies all over again. Except now that its easier to trade its happening in stocks.

Populism of a companies stock doesnt really change the performance of that company. GME will implode eventually and the newest suckers or WSB will be left holding the bag.

Re: The Battle of GameStop

#33

Post by Clewza313 »

A couple of hedge fund managers shorting GME may have gotten kicked in the nuts, but Wall Street as a whole is laughing all the way to the bank. A friend of mine working at a high-frequency trading co says 2020 was their best year ever and by a long shot, because volatility plus clueless retail investors (yes, that means you, /r/wsb'ers YOLOing on Robinhood) means arbitrage and frontrunning rakes in money.

Re: The Battle of GameStop

#34

Post by shouldiquitamzn »

throwaway0a5e wrote: post #2

They're not winning. They're just minting a different set of losers and pushing the drawing out by a couple weeks. And Reddit being Reddit you can never really be sure whether organic interest is pumping the stock or if they are being manipulated by an astroturfing campaign. If day trading weren't a conflict of interest for me I'd be looking into doing something like that (and consequently not blabbing about it on HN…

They are winning. That’s what people don’t get. This whole dumb money never wins mantra is what’s driving WSB. It’s a bucking of that false narrative. People working on Wall Street aren’t gods, but it’s their job to convince you they are

Re: The Battle of GameStop

#35

Post by thepasswordis »

>We can remain retarded longer than they can remain solvent.

There is a tremendous amount of spite involved here. They hate the boomers, and they hate the institutional wallstreet investors and hedgies. And why shouldn't they? These people play with our lives and get fantastically wealthy by gambling with our retirement accounts.

I saw that some hedge fund got wiped out today by this. Sorry I won't be shedding any tears over that. Maybe the hedgies should have to learn to code.

Re: The Battle of GameStop

#36

Post by phil_e_delphian »

ffggvv wrote: post #13
paxys wrote: post #8

"Winning" because they collectively own millions of dollars of a worthless stock?

its okay they'll try to sell before it crashes and leave some other chump holding the bag. "taking on wall street"

this a profound (intentional?) misreading of how a short squeeze functions. the shorts are the ones who end up "holding the bag" in that they are contractually obligated to buy shares at current (higher) value in order to cover their position.

hence the "taking on wall street" angle - institutional shorts are the chump, not the retail investors (and the institutions going long with them)

Re: The Battle of GameStop

#37

Post by electriclove »

dannyw wrote: post #18
throwaway0a5e wrote: post #2

They're not winning. They're just minting a different set of losers and pushing the drawing out by a couple weeks. And Reddit being Reddit you can never really be sure whether organic interest is pumping the stock or if they are being manipulated by an astroturfing campaign. If day trading weren't a conflict of interest for me I'd be looking into doing something like that (and consequently not blabbing about it on HN…

Melvin capital has been forced to take multiple capital injections and bail outs, to avoid being margin called. Short sellers have mark to market losses of over $6 billion, and should the momentum continue, they will be forced to sell at the worst times (infinity short squeeze). Wall St are looking like they will be the losers.

Oh I wish but Wall St creates the rules so I wouldn't be surprised if they find a way to save their butts on a short squeeze.

Re: The Battle of GameStop

#38

Post by electriclove »

trap_chateau wrote: post #11
throwaway0a5e wrote: post #2

They're not winning. They're just minting a different set of losers and pushing the drawing out by a couple weeks. And Reddit being Reddit you can never really be sure whether organic interest is pumping the stock or if they are being manipulated by an astroturfing campaign. If day trading weren't a conflict of interest for me I'd be looking into doing something like that (and consequently not blabbing about it on HN…

I think I'm convinced of manipulation. The memeing and the gameifying investment, calling each other retards (because you, user, you don't know _anything_) and the long obscure unfalsifiable ramblings about predictions or valuable investments hitting the top of the page, it all just seems a little fishy to me.

No, it really is just random people rallying together. What is fishy is who is on the other end of the play and getting a black eye for once.

Re: The Battle of GameStop

#39

Post by thepasswordis »

dannyw wrote: post #18
throwaway0a5e wrote: post #2

They're not winning. They're just minting a different set of losers and pushing the drawing out by a couple weeks. And Reddit being Reddit you can never really be sure whether organic interest is pumping the stock or if they are being manipulated by an astroturfing campaign. If day trading weren't a conflict of interest for me I'd be looking into doing something like that (and consequently not blabbing about it on HN…

Melvin capital has been forced to take multiple capital injections and bail outs, to avoid being margin called. Short sellers have mark to market losses of over $6 billion, and should the momentum continue, they will be forced to sell at the worst times (infinity short squeeze). Wall St are looking like they will be the losers.

Good.

Re: The Battle of GameStop

#40

Post by zappo2938 »

The jury is still deliberating whether WSB is an effective cartel or not. At the end of the day, the members total investment is so small that it doubtfully makes any difference. It is probably more analogous to Ed Thorp's Beat the Dealer. He devised an algorithm to count cards. Ran a simulation on a computer at MIT, got bankrolled, and went to Reno to test it in person. Why didn't he continue counting cards in Nevada? Because hedge funds are more lucrative per effort.

Nonetheless, after he published Beat the Dealer casinos greatly benefitted rather than a situation where they lost revenue from Blackjack card counters. Thousands of people believing that they could make a fortune using his system went to the casinos. Between the free drinks and the inability to focus, people lost fortunes instead. Moreover, Blackjack remained hugely popular.

You never hear about people losing money in Vegas, only about that one time someone won big. It's the same with WSB, sort of. They do lose money and lots of it. Moreover, they post the losses. It is only during squeezes like with Tesla do we hear about it in the media.

Still, at the end of the day, they invest a very, very small sum of money and can't have much influence. I thought for a while that maybe there were outside influences driving memes to get the cartel to behave a certain way, but decided they are not much of a force.

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