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GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

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Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#21

Post by mucsun »

Cookingboy wrote: post #16

On Reddit, especially /r/wsb, many people painted it to be a common folks vs. Wall Street hedge funds story. But I've always thought the reality was that it's a hedge funds vs. hedge funds story where plenty of big players made millions, if not billions last week, then shorted the stock at $3-400 and made millions more on the way down. The retail players were probably just caught between a group of 800lbs fighting go…

If I were a conspiracy theorist I'd say the investment into Robinhood looks like the pay-off for Robinhood halting buys. Buys only, not halting trading the stock.

But I'm not a CT so who knows.

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#22

Post by itronitron »

hans1729 wrote: post #15
WA wrote: post #14

Earlier quoted context omitted.

Holding doesn't make the price. You gotta buy if you want to push the price. And nobody got any money for that anymore. The narrative is dead.

But the buyers were supposed to be the hedges, desperate to get rid of their short positions. Which is just another dimension: they surely bought more shorts at 300. But can they possibly have covered the majority of their positions? Because if not, this should go above 100 again, right?

A lot of people are saying that the hedge funds bought new shorts at 300 but if that is the case then who would have sold them at that price?

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#23

Post by TheAdamAndChe »

Cookingboy wrote: post #16

On Reddit, especially /r/wsb, many people painted it to be a common folks vs. Wall Street hedge funds story. But I've always thought the reality was that it's a hedge funds vs. hedge funds story where plenty of big players made millions, if not billions last week, then shorted the stock at $3-400 and made millions more on the way down. The retail players were probably just caught between a group of 800lbs fighting go…

On robinhood, their only sin through this whole situation was poor communication. Several firms had to restrict trading of GME and several other stocks because of clearinghouse restrictions. Robinhood was the first to try to explain publicly why they had to do that, and they explained it absolutely horribly.

With regards to treating investing like gambling, there's no real problem with that. There's definitely a market for it, and it's why /r/Wallstreetbets exists.

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#24

Post by DSingularity »

WA wrote: post #17
hans1729 wrote: post #15

Earlier quoted context omitted.

But the buyers were supposed to be the hedges, desperate to get rid of their short positions. Which is just another dimension: they surely bought more shorts at 300. But can they possibly have covered the majority of their positions? Because if not, this should go above 100 again, right?

Why? If I'm short GME, I'd just wait. Sure, I have to pay borrowing fees, but it doesn't matter if I hold for a week or a few months, if I'm sure it collapses 90% within a year. Of course, I'm oversimplifying stuff like risk management, margin calls etc. but generally speaking, what forces a hedge fund to liquidate its short position?

Where do they get their shares from? They borrow it from people who don’t own it. Those people may want to sell — especially in the event that the share price grows. And when that happens in sufficient volume time to put up because the exchange is not going to fail to deliver.

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#26

Post by bilekas »

Cookingboy wrote: post #16

On Reddit, especially /r/wsb, many people painted it to be a common folks vs. Wall Street hedge funds story. But I've always thought the reality was that it's a hedge funds vs. hedge funds story where plenty of big players made millions, if not billions last week, then shorted the stock at $3-400 and made millions more on the way down. The retail players were probably just caught between a group of 800lbs fighting go…

This might be the case, but it could be said of any bet too that; "Oh I bet they made their money back or doubled in the end"

Trying to sqeeze a short is one thing, but trying to actively make them lose money overall is an entirely different beast and I'm not sure of any good example of when its happened.

One thing is certain, there are a lot of regular retail investors who are holding some heavy bags right now. :(

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#27

Post by teekert »

I really hate how big hedge funds can consistently pull money out of the market using tools normal people don't have access to. When it bites them because they get caught with their hands in the cooky jar, they call the market "irrational" or that the "market is disturbed". But their profits are disturbed by people that play "their" game by the rules. Nobody likes to see a a billionaire get even more rich just by shuffling money around while the rest of us are down here providing real value to the world in the form or goods and services. They should be happy it's just a short squeeze and not a full blown revolution.

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#28

Post by KingOfCoders »

mucsun wrote: post #21
Cookingboy wrote: post #16

On Reddit, especially /r/wsb, many people painted it to be a common folks vs. Wall Street hedge funds story. But I've always thought the reality was that it's a hedge funds vs. hedge funds story where plenty of big players made millions, if not billions last week, then shorted the stock at $3-400 and made millions more on the way down. The retail players were probably just caught between a group of 800lbs fighting go…

If I were a conspiracy theorist I'd say the investment into Robinhood looks like the pay-off for Robinhood halting buys. Buys only, not halting trading the stock. But I'm not a CT so who knows.

Hasn't this been debunked enough?

Sure you can believe in conspiracy not in "buy cost collateral/sell is free" but why here on HN? Isn't there a subreddit for that?

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#29

Post by manderley »

Dma54rhs wrote: post #7
hrns wrote: post #3

At this point I'm not sure if the WSB anticipated short squeeze is going to happen, or maybe it has happened already last week.

Wasn't it supposed to be that magical last Friday already? At least that was the common topic at the beginning, what changed?

It's desperate people trying to tell themselves that they're going to be rich soon against all evidence. It's why the date for the supposed squeeze keeps moving.

Re: GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny

#30

Post by jcims »

rmm wrote: post #25

What happens to the shares of all the people who install Robin Hood, lose their money and just delete the all. Do they just go stagnant?

Not sure about anywhere else but in the US RobinHood requires your SSN to sign up. No idea how well they validate it.
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