Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

u/DeepFuckingValue and the GameStop Reddit mania

wsj.com

Post reply on HN
Print view View original

161–170 of 554 posts

Re: u/DeepFuckingValue and the GameStop Reddit mania

#161

Post by nostrademons »

eMGm4D0zgUAVXc7 wrote: post #24
devops000 wrote: post #10

Earlier quoted context omitted.

I hope one day we will see an IPFS link

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…

I remember when this came out 20 years ago. It was part of the whole wave of P2P filesharing programs that came out between 1999-2002: Napster, Gnutella, Kazaa, Audiogalaxy, etc. Amazing it's still going on.

BTW, for folks new in tech - it's amazing how influential that wave of programs were, even though they largely failed in the marketplace. Napster founder Sean Parker later became the first investor and first president of Facebook. Also involved in the wave (in a tangential way) was Mark Zuckerburg, whose Synapse Media Player got a $M+ buyout offer from Microsoft while he was still in high school. Uber founder Travis Kalanick's first two projects were Scour (a P2P filesharing app) and Red Swoosh (a P2P CDN). I met the AudioGalaxy founder while working on Google Search - he later went on to become one of the early Waymo engineers. The Kazaa founders later went on to found Skype, and we know where that went. Chord (an academic research project in distributed hash tables) was led by Robert Tappan Morris (originally famous for creating the Internet Worm of 1988), who then went on to co-found YCombinator, which owns the website you're reading this on. The gossip protocol invented & refined by Gnutella forms the basis for many cryptocurrency P2P protocols like Bitcoin & Ethereum.

There's probably several trillion dollars in market cap attributable to the intellectual descendants of a bunch of nerds who wanted to share stuff over the Internet and fuck over the RIAA, MPAA, and governments.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#162

Post by treelovinhippie »

ignoramous wrote: post #106

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://archi…

He started June 2019: https://www.reddit.com/r/wallstreetbets/comments/e3kpbc/gme_...

And called it for Jan 2021: https://www.reddit.com/r/wallstreetbets/comments/e8wqvs/gme_...

And his Youtube channel: https://www.youtube.com/channel/UC0patpmwYbhcEUap0bTX3JQ

Re: u/DeepFuckingValue and the GameStop Reddit mania

#163

Post by pnathan »

sumedh wrote: post #37
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.

> 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.

if you trawl his reddit account, he mentioned 9 months ago there's a possibility of a short squeeze of some sort happening sometime.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#164

Post by brokencode »

jzoch wrote: post #89
ggggtez wrote: post #63

Earlier quoted context omitted.

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…

Trying to figure out the "fundamental" value of anything is a fools errand. Im not saying GME wont drop eventually but there is no value on fundamentals of everything. Look at all the short-sellers of TSLA who made the same mistake. These companies are valued on what the market decides and we all know "The market is irrational".

In the long run, the market gets more rational. In the short term, anything can happen.

Humans are emotional and make mistakes, but most investors at least attempt to make sound investments, and that’s what drives the market at the end of the day.

If GameStop the company continues its failing trajectory, then GameStop the stock will eventually follow.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#165

Post by runarberg »

kinghajj wrote: post #140
runarberg wrote: post #122

Earlier quoted context omitted.

> I would not be surprised if this is the beginning of another stock market crash. Good. Let it crash and burn. The stock market has never done anything for me. Shareholders making money out of my work is not exactly in my interests, nor is it in the interest of the majority of the world’s workers. My only wish is that this time around the stock markets will stay down after they burn, and be remembered in history as…

> The stock market has never done anything for me. I mean, it could, if you were to invest. > Shareholders making money out of my work is not exactly in my interests, nor is it in the interest of the majority of the world’s workers. So instead of, say, encouraging people to learn how to invest, and maybe even incentivizing firms to allocate shares to their employees, you'd rather just have the whole stock market burn…

Statistically, in a zero sum game, where all players are equally skilled and the winner of each transaction is determined at random. The more transaction made, the more the wealth accumulates.

What this means is, that unless you are already one of the richest person on the stock markets, your most likely outcome is that you will loose money by participating. So—unless you are already rich—your optimal strategy is not to participate in the stock markets.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#166

Post by mylons »

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…

This isn’t holding mania. It’s a war. $GME is the front line.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#167

Post by ggggtez »

jstanley wrote: post #100
ggggtez wrote: post #68

Earlier quoted context omitted.

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.

It's more likely that he thought he was nowhere near influential enough to create one on his own. He would previously have had no reason to believe that his public statements would move the market.

That's exactly what I mean. Even if he thought he had some power, or acted as if he did, it's in his best interest to downplay that as much as possible.

This guy was a well known poster. I'm sure he thought he had some power to motivate wsb users to invest, but he might not have predicted he had enough power such that he would get embroiled in an investigation. Regardless of how "internet-tuff-guy" people are, most people really don't like to suddenly be thrown into the limelight of a financial fraud investigation, even if they are innocent of any crimes.

Thus, the CYA language. Better to get out in front and claim ignorance just in case.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#168

Post by Blammar »

hntrader wrote: post #113
tootie wrote: post #86

Earlier quoted context omitted.

GME is absolutely going to crash and everyone knows it. There was a mod post just today reminding everyone to be ready. The stock is worth $10-20 on it's merits and that's where it will land. We just don't know when. The chance of this as a contagion that brings down indexes seems very unlikely.

I think this whole episode might cause the next market sell-off: (1) fund degrossing as the initial driver - already happening (2) everyone is being reminded of 99/00 mania (3) uncertain regulatory environment surrounding trading (4) worries of systemic risks created by bubble GME going higher is likely to trigger it more than it dropping off right now

All we need to wait for now is the shoeshine boy's tip and it'll be time to get out! See https://seekingalpha.com/instablog/661124-brijwanth/73895-hi... for a humorous variation on that classic theme.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#169

Post by girvo »

SpicyLemonZest wrote: post #90
yreg wrote: post #78

Earlier quoted context omitted.

Why would that crash the entire stock market?

The theory I've seen is that there could be hidden systemic risks here. If GME tanks suddenly, there's some possibility that traders bailing out of their trades will take down Robinhood (who doesn't seem to be very healthy right now), and a major broker collapsing is never gonna be great for the market. I share your skepticism that it would actually happen this way, but it seems at least somewhat plausible.

Robinhood are tiny on the brokerage stage. Important to retail, barely matter otherwise. That’s my understanding at least

Re: u/DeepFuckingValue and the GameStop Reddit mania

#170

Post by [deleted] »

rzz3 wrote: post #57
yreg wrote: post #35

Earlier quoted context omitted.

Well if a stock market crash triggered by this is realistic (which I agree is), doesn't it make sense to hold a bit of GME for insurance? I understand that there's no guarantee one will be able to exit it successfully even if it flies so high that it crashes the market. However I don't see a better insurance for people who don't have access to options/inverse etfs and don't want to sell their stocks.

That seems like sound logic to me. GME has been a vortex this week sucking up value from the rest of the market. Seems smart for the next few days/week at least until we learn otherwise.

[deleted]
Post reply on HN