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u/DeepFuckingValue and the GameStop Reddit mania

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Re: u/DeepFuckingValue and the GameStop Reddit mania

#101

Post by stcredzero »

semi-extrinsic wrote: post #81
rcoveson wrote: post #59

Earlier quoted context omitted.

> Know that we don't know what kind of deals are happening behind closed doors in these two last days of manipulated activity. As the saying goes: If you're at a poker table and you can't tell who's the fish, get up. You're the fish.

If you know that there is only one fish and a lot of sharks, sure. But with payment for order flow you know there are tons of other fish at the table. That changes things, as you only have to beat the other fish to get a small payout. And the sharks aren't focusing on you in particular, so you might get lucky and beat the sharks.

Isn't that the "bigger fool" theory?

To quote Obi-Wan: "Who's more foolish? The fool or the one who follows him?"

Re: u/DeepFuckingValue and the GameStop Reddit mania

#102

Post by filoleg »

ggggtez wrote: post #68
sumedh wrote: post #37

Earlier quoted context omitted.

> He had no intention of creating a squeeze If I am not mistaken he did say in one of his videos that there is a chance for a squeeze to happen.

I believe this is CYA (cover your ass) language. Given the recent interest in the case, he's likely saying now that he didn't intend to (or that even if he intended to, he didn't think it was within his power) as a pre-emptive defense against litigation.

There is zero chance of this hypothetical lawsuit (that alleges market manipulation/creating a squeeze using just $50k worth of cash, which is a laughable amount of money when it comes to the market) not getting thrown out of court the instant it lands on the court clerk's desk.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#103

Post by jMyles »

prepend wrote: post #52
eMGm4D0zgUAVXc7 wrote: post #24

Earlier quoted context omitted.

Why do people constantly have to re-invent the wheel? :( Freenet [0] has been providing censorship-resistant, anonymous, decentralized hosting for 20 years - and is still in active development! You could upload it to Freenet without any server whatsoever and it would stay online for as long as it is popular, even if your machine goes offline. And you'd be anonymous while doing so! [0] https://en.wikipedia.org/wiki/Fr…

Freenet doesn’t make money for speculators like ipfs. Making gobs of money is an important feature driving wheel reinvention, I think.

Are speculators making money on ipfs? How? This is news to me.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#104

Post by f430 »

sn_master wrote: post #44
f430 wrote: post #26

What makes WSB legal vs emails about imminent pump on an unspectacular stock? What stops somebody from purchasing aged reddit accounts and then pumping up, upvoting their own threads?

Look at DFV's account. He's been talking about GME since mid-2019.

I don't think anybody is denying that what I am talking about is the astrotrufing on reddit with commercial interests and unregulated crypto currency.

My question is what stops somebody pulling off the same trick on WSB and how do we know? How can we know? Does the SEC know how to tell?

Re: u/DeepFuckingValue and the GameStop Reddit mania

#105

Post by IntFee588 »

I know this forum is capitalist to the core, but there is a lack of appreciation for this moment and an undue air of cynicism.

This whole situation breaks a ton of fundamental assumptions about how markets work and will change hedging strategies for a lot of investors moving forward. Yes, we know there are hedge funds on both sides of this equation (Blackrock owns 12% of Gamestop, Burry made a ton and smartly got out earlier in the week), it doesn't change anything. The internet is already searching for more securities to manipulate. This will accelerate adoption of the DeFi space. Scaramucci called it "the French Revolution of Finance."

Instead of being negative, look to see how you can learn and profit from this.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#106

Post by ignoramous »

Looking back at (u/deepfuckingvalue) Keith Gill's comments on r/wsb, it looks like they had a solid theory to cash out by Jan 2021 for $8+ a share (most of their calls starting June 2019 were 80 cents a share or less [0]). This was by no means a strategy to make money by squeezing the short, though one user, conspicuously named u/burrym, speculated that it ought to be [1].

[0] https://archive.is/Y953e, https://archive.is/w98tn

[1] https://archive.is/Pnuxg

Re: u/DeepFuckingValue and the GameStop Reddit mania

#107

Post by stcredzero »

strogonoff wrote: post #95
kzrdude wrote: post #82

Earlier quoted context omitted.

Check all his recents posts, then you can fact-check that statement and see that he has liquidated and earned some cash, and is simultaneously holding on to some significant stocks. Both things are true.

About $13.8 million he’s got out of the stock to be exact, if reports elsewhere in the thread are correct. This shows how ability to influence large numbers of people can convert to money, and the closer you are to the root the bigger slice of the cake you get.

Basically applies to all media and startups.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#108

Post by franklampard »

ggggtez wrote: post #63
tootie wrote: post #25

Earlier quoted context omitted.

It says as much in the article. He literally just thought GME was undervalued on its merits. He had no intention of creating a squeeze or punishing Melvin.

Just because he's still in doesn't mean that it's actually worth $300 on the fundamentals. I could definitely see the argument that $20 was undervalued, but it's plain to see that the short-squeeze is now part of the calculation of value. There is no way that GameStop has an actual fundamental value of $300 per share. That price is clearly inflated, and in a few weeks will decrease, probably to somewhere above $20, b…

what is the fundamentals for the short positionsv

Re: u/DeepFuckingValue and the GameStop Reddit mania

#109

Post by f430 »

JacobSuperslav wrote: post #43
f430 wrote: post #26

What makes WSB legal vs emails about imminent pump on an unspectacular stock? What stops somebody from purchasing aged reddit accounts and then pumping up, upvoting their own threads?

nothing. I'm in the social media business and I can tell you it's very easy to make 5 figures/month gaming reddit(as an individual operation) using farmed accounts and it's been going on for years. Not necessarily with stock schemes. they got next to none security when it comes to stuff like this. agency that I worked at a few years ago literally had thousands of aged reddit/twitter accounts in their portfolio. there…

there's just no way the SEC is sophisticated enough to catch this especially with untraceable forms of payment.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#110

Post by amluto »

raziel2701 wrote: post #22

On wsb u/deepfuckingvalue showed he still holds 50,000 shares and 500 deep ITM call options. He has secured a profit of $13.8 million dollars, and his remaining open position is valued at $45 million. I would caution people to not quickly fall into the "if he's still in, I'm still in" meme. He has secured a $14 million bag, regardless if the stock goes to zero he's already secured a life changing amount of money, he…

I wouldn’t be terribly surprised if some big players have carefully arranged to have large short interest but to be hedged against large upswings. This could be an expensive position to carry, but it could be quite profitable if people thought they were squeezing an unsqueezable short.
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