u/DeepFuckingValue and the GameStop Reddit mania • Hacker News Board

Re: u/DeepFuckingValue and the GameStop Reddit mania

#341

Post by [deleted] » Sat, Jan 30, 2021, 1:46 AM UTC

nostrademons wrote: post #222

airstrike wrote: post #204

Earlier quoted context omitted.

Probably proof that who you know is about as important as what you can do, if not more

The interesting thing is that most of those people weren't actually pals when working on P2P stuff, but they were all working on the same stuff . Zuckerburg and Parker didn't meet until Facebook was growing quickly. Scour/Red Swoosh, to my knowledge, had no major connection with the other projects. I view it more like an instance of synchronicity, where a lot of bright young people looked at the world independently a…

[deleted]

Re: u/DeepFuckingValue and the GameStop Reddit mania

#342

Post by ffggvv » Sat, Jan 30, 2021, 1:47 AM UTC

misiti3780 wrote: post #31

I'm honestly confused by the press around this event. I get it, /DFV started a short squeeze and got rich, that is great for him. I don't support naked shorting, it should probably be illegal (if it is not already) and it looks that was part of the reason this happened. Everyone has been suspecting for a while (especially here) that a lot of volatility in stocks like TSLA etc was due to Robinhood. As of 5:33 EST, I'm…

there was no naked shorting and it is illegal.

and its because the media likes the narrative and people are running with it. david vs goliath etc. ignoring there are goliaths who were long on gamestop and pensioners who had their money in the hedge fund.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#343

Post by taneq » Sat, Jan 30, 2021, 1:47 AM UTC

nostrademons wrote: post #222

airstrike wrote: post #204

Earlier quoted context omitted.

Probably proof that who you know is about as important as what you can do, if not more

The interesting thing is that most of those people weren't actually pals when working on P2P stuff, but they were all working on the same stuff . Zuckerburg and Parker didn't meet until Facebook was growing quickly. Scour/Red Swoosh, to my knowledge, had no major connection with the other projects. I view it more like an instance of synchronicity, where a lot of bright young people looked at the world independently a…

When the internet became a thing for the general public, it was a bit of a no-brainer to try and do "X but on the internet" for all X. "Filesystem but on the internet", "diary but on the internet", "cash but on the internet", "tv but on the internet" etc.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#344

Post by al3xandre » Sat, Jan 30, 2021, 1:48 AM UTC

nostrademons wrote: post #222

airstrike wrote: post #204

Earlier quoted context omitted.

Probably proof that who you know is about as important as what you can do, if not more

The interesting thing is that most of those people weren't actually pals when working on P2P stuff, but they were all working on the same stuff . Zuckerburg and Parker didn't meet until Facebook was growing quickly. Scour/Red Swoosh, to my knowledge, had no major connection with the other projects. I view it more like an instance of synchronicity, where a lot of bright young people looked at the world independently a…

Or more likely this is how synchronicity works: - we have 7B people on earth - at any point of time, all possible exciting among the moment are being worked on by someone - if something succeed, we look back and wonder at the synchronicity: how it is possible that 10 people worked independently on the same thing - they must have all have been guided by the superior intellect they had in common!

...

I’m sure there were great synchronicity of people working on squaring the circle in 18th century, and of people working on the philosopher stone earlier, except they were all misguided so we don’t talk about them.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#345

Post by whatever1 » Sat, Jan 30, 2021, 1:49 AM UTC

If GameStop issues some million shares on Monday morning to raise capital isn't it game over for every retail player? Shorts will close their positions, RH users will suffer great losses from dilution. Am I missing something?

Re: u/DeepFuckingValue and the GameStop Reddit mania

#346

Post by doyouevensunbro » Sat, Jan 30, 2021, 1:50 AM UTC

__MatrixMan__ wrote: post #325

chillacy wrote: post #178

Earlier quoted context omitted.

> militant activism via buying stock as a means to sticking it to the man. > beginning of another stock market crash Hmm sounds like it's working then.. Going off of the resentment against the 'elites' in wsb comments to the tune of "I started broke and I'll go broke again but if the rich go broke..."

Maybe we'll see a new class of financial instrument come out of this. Not sure how it would work but I have to imagine that some clever person on Wall Street can find a way to sell shares of: > Give me $1 and I'll make sure your target loses $5

Spite investing? Count me in.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#347

Post by u678u » Sat, Jan 30, 2021, 1:53 AM UTC

hangonhn wrote: post #49

hehehaha wrote: post #18

Earlier quoted context omitted.

Really helps discredit this notion of retail vs hedge fund. Most people who frequently make “DD” posts to r/wsb have ties to the financial industry and Wall Street. They either work there or have worked there. And yet they are critical of the Man? This is like ex-Facebook employees having a found-Jesus moment.

I worked at a hedge fund as my first job on the IT and Dev side. I will never put my money in a hedge fund. Just the way they spend money to boost the sense of self importance, etc. is nauseating. I once Fedex-ed a ream of printer paper from NYC to a partner on vacation in Miami because he was too entitled to drive to the nearest office supply store. I literally found a store like 10 minutes away but was told to just…

> I worked at a hedge fund as my first job on the IT and Dev side. I will never put my money in a hedge fund. Just the way they spend money to boost the sense of self importance, etc. is nauseating. I once Fedex-ed a ream of printer paper from NYC to a partner on vacation in Miami because he was too entitled to drive to the nearest office supply store.

Sounds like a good place to work tbh.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#348

Post by strogonoff » Sat, Jan 30, 2021, 1:54 AM UTC

stcredzero wrote: post #107

strogonoff wrote: post #95

Earlier quoted context omitted.

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.

How does it apply to all media?

Re: u/DeepFuckingValue and the GameStop Reddit mania

#349

Post by koolba » Sat, Jan 30, 2021, 1:55 AM UTC

milofeynman wrote: post #308

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…

Could you explain who would "loan" these hedge funds shorts at these elevates levels? Or is that not how it works.

Anyone who has the stock. The loans are usually collateralized at 100+% and marked to market daily. For stocks this crazy the interest rates on the loans would be equally insane.

So any large institutions (ex: pension funds) holding the stock are making bank lending it out.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#350

Post by SpicyLemonZest » Sat, Jan 30, 2021, 1:56 AM UTC

lwigo wrote: post #245

SpicyLemonZest wrote: post #90

Earlier quoted context omitted.

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.

It's got nothing to do with Robinhood. If a hedge decides to cover the short so they don't have to admit defeat and go bankrupt, then the entire market goes down because they'll end up selling thousands of unrelated shares for their cover.

You've fallen victim to some common misinformation that's spreading. Multiple hedge funds have already been able to cover their shorts, and there's not much reason to believe this will change.