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AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

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Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#121
post #97

Earlier quoted context omitted.

There are plenty of "Average people" that entered near the top, and since not everyone can sell simultaneously, that means a ton of people are losing the life savings they dumped into this out of excitement as it crashed back down. I think the point being made here is that the whole narrative of "average people beating wall street" is pretty naive and quite bullshit. All in on, maybe a few handful of people got 10x o…

> that means a ton of people are losing the life savings they dumped into this out of excitement as it crashed back down Can you provide a single case of someone losing their entire life savings by YOLOing it on GME at the top?

The Washington Post had an article yesterday about someone who was apparently $400k down on GME (https://www.washingtonpost.com/technology/2021/02/02/gamesto...):

> The Reddit poster Volkswagens1, who declined to give his name but said he lives in the Pacific Northwest, showed The Washington Post an image indicating roughly $400,000 in potential GameStop losses from the day but insisted he would not sell.

> He said he’s poured most of his saving and checking accounts into the stocks and spent the last week “doing as much research as possible,” including sacrificing sleep and calling in sick to work, to make sure he was staying on top of the market’s moves.

(There's also a quote about him doing this because he's been poor for too long, but my take is that if you have enough assets to face a $400k loss, you weren't poor before you entered that position, even if you may now be).

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#122

Earlier quoted context omitted.

> A few teacher pension funds got a good uptick and they were sharing that around. The Ontario Teachers Pension Plan, who was holding GME, is one of the largest hedge funds in existence, worth over 200 billion dollars. For comparison, Maverick Capital is worth only $15 billion. That is not a case of some little guy teachers making out well, it is the rich (if not the richest ) hedge funds getting richer.

I highly doubt anyone is against pension funds making money - even if they are run as a hedge fund. The political opposition to hedge funds has to do with the fact that they often cater (or are assumed to cater) to the 1%. Who cares if it is 200B? It probably represents the financial interests of tens-of-thousands of teachers.

Depending on how you think the fund should be divided for wealth purposes, if we assume an equal division, the fund alone puts many Ontario teachers into the top 1%. Never mind what other wealth they may have.

They are the 1% you are talking about. I expect what you're really saying is that the political opposition opposes strangers who are perceived as being different, whereas the top 1% comprised of teachers are relatable and maybe even your close friends so you can be happy for their success.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#123

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

There is a similar phenomenon when Bitcoin is discussed on HN.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#124

I expect a lot of Redditors will be very disappointed when they realize just how much money hedge funds made, on average, out of this episode. The WSB moderators really did everyone a disservice by letting obvious misinformation flood the subreddit. It’s hard to view the later stages of the GameStop phenomenon as anything other than a Reddit-fueled pump and dump scheme.

Pump and dump? Were they the ones who removed the ability to sell stocks? I guess it's important to spread that misinformation around.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#125

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

wait til you really think about the covid bubble for more than 2 minutes. at a population level, you'll see a broad range of misperceptions everywhere. you'll see people missing the forest for the trees (private gatherings vs masks), focusing on trivialities (restaurants, fomites, masks again) and simply ignoring how much low-level emotion (fear, impotence) and instinct (othering strangers) drive our beliefs (have to protect ourselves from those selfish others, rather than the friends and family who present the highest risk).

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#126

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

According to the moderators of HN astroturfing is not a thing on this site! You are just mad that stories disagree with your world view. Lol.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#127

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

Also encountered a few QAnon believers here back in the day which completely surprised me.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#128
post #97

Earlier quoted context omitted.

There are plenty of "Average people" that entered near the top, and since not everyone can sell simultaneously, that means a ton of people are losing the life savings they dumped into this out of excitement as it crashed back down. I think the point being made here is that the whole narrative of "average people beating wall street" is pretty naive and quite bullshit. All in on, maybe a few handful of people got 10x o…

> that means a ton of people are losing the life savings they dumped into this out of excitement as it crashed back down Can you provide a single case of someone losing their entire life savings by YOLOing it on GME at the top?

I suspect the stories will emerge once the GME price truly tanks. No, I don't think it'll be millions of people, but reading the level of delusion in that sub I don't think it's going to be tens of people either.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#129
post #72

Earlier quoted context omitted.

Whereas Hacker News is just a bunch of people who don't know what they're doing pretending to be experts to influence the actual idiots. You can find charlatans pretty much anywhere money or people with money congregate.

The difference is the HN hype train might cause you some headaches from picking an immature tech stack. Whereas the WSB echo chamber has literally ruined thousands of people's lives and retirements.

If someone is going to ruin their life or retirement based proximately to posts in a Reddit forum, it’s very hard for me to assign root cause to the Reddit forum.

At most that’s the first or second “Why?” but there is surely a deeper issue.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#130

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

I wouldn’t say HN is particularly evidence driven, just that that’s how they want to see themselves. The hive mind here has world class knowledge on tech and math but with financial issues it’s pretty average. And some of the philosophical points made here leave you scratching your head, look at fears of AGI or people thinking we live in a simulation. Those are hip viewpoints but to the average person they look ridiculous.
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