GameStop: Anger as trading in GameStop shares is restricted • Hacker News Board

Re: GameStop: Anger as trading in GameStop shares is restricted

#71

Post by WorldMaker » Thu, Jan 28, 2021, 5:33 PM UTC

betterunix2 wrote: post #64

Splendor wrote: post #46

Earlier quoted context omitted.

Yet somehow they've been outwitted by a bunch of Redittors. Maybe you're giving them to much credit.

A handful of speculators were hurt. Now the WSB crowd is facing a large loss -- and guess who they are losing all that money to? You can bet that hedge funds with "dry powder" jumped on the opportunity to take short positions on GME as they watched the price and implied volatility balloon. All the people buying options and buying the underlying stock -- who do you think they were buying from?

Which is why the squeeze will be fascinating if a high percentage of the WSB crowd really are going long.

Re: GameStop: Anger as trading in GameStop shares is restricted

#72

Post by yifanl » Thu, Jan 28, 2021, 5:41 PM UTC

viro wrote: post #63

EpicEng wrote: post #48

Earlier quoted context omitted.

These clowns shorted 170% of float. If that's not pure gambling teetering on market manipulation, I don't know what is.

Bruh, lets be honest its GameStop. That company IS going the way of blockbuster. "pure gambling" is a stretch everyone can read the tea leaves here. Honestly pre-covid when was the last time you went into a GameStop and saw more than two other people.

Its going bankrupt in the medium term if nothing changes, but that ratio of shorts would only make sense if it was going bankrupt in a quarter or two, where Gamestop actually rallied on revenue with the release of the new console generation.

Re: GameStop: Anger as trading in GameStop shares is restricted

#73

Post by Semaphor » Thu, Jan 28, 2021, 5:42 PM UTC

multjoy wrote: post #25

ButterWashed wrote: post #11

Not being in the US I don't know this but can Robinhood be sued, like a lot of people seem to be calling for, just for refusing to handle trades on a stock?

The T&Cs will almost certainly allow them a huge amount of latitude in what they will let people do with their platform. Although if a decent amount of retail investors lose money as a result of not being able to sell stock they already own then the blood is in the water for a class action. Saul Goodman is waiting for your call!

from what I've read, selling gme is the one thing they are allowed to do with it

Re: GameStop: Anger as trading in GameStop shares is restricted

#74

Post by EpicEng » Thu, Jan 28, 2021, 5:44 PM UTC

viro wrote: post #63

EpicEng wrote: post #48

Earlier quoted context omitted.

These clowns shorted 170% of float. If that's not pure gambling teetering on market manipulation, I don't know what is.

Bruh, lets be honest its GameStop. That company IS going the way of blockbuster. "pure gambling" is a stretch everyone can read the tea leaves here. Honestly pre-covid when was the last time you went into a GameStop and saw more than two other people.

Sounds like you're agreeing with me? Not sure what your point is. Obviously these trades are not based on any sort of fundamental analysis.

Wall street made a bet and now retailers are getting tagged as bad actors for taking the other side.

Re: GameStop: Anger as trading in GameStop shares is restricted

#75

Post by EpicEng » Thu, Jan 28, 2021, 5:45 PM UTC

nsator wrote: post #59

EpicEng wrote: post #48

Earlier quoted context omitted.

These clowns shorted 170% of float. If that's not pure gambling teetering on market manipulation, I don't know what is.

It's mostly just one hedge fund. It would be an overgeneralization to call all hedge fund clowns...

"These clowns" e.g. Citron and Melvin Capital. I know.

Re: GameStop: Anger as trading in GameStop shares is restricted

#76

Post by SV_BubbleTime » Thu, Jan 28, 2021, 5:45 PM UTC

betterunix2 wrote: post #69

WrtCdEvrydy wrote: post #65

Earlier quoted context omitted.

Robinhood is currently operating under Restricting the GME stock. The only option is to sell, there are no 'buy options'

Who do you think those shares are being sold to? Robinhood's brokerage side is restricting trades, but their exchange (the "shadow" exchange they use to make money without charging commissions) is still allowing buy orders, or else they have effectively suspended GME on their exchange and have to route the sell orders elsewhere. Again, it is not possible for an exchange to only allow selling of a stock, because every…

Yea... you know other exchanges that “I” can’t use, like Canadian ones are still allowing buying right?

Re: GameStop: Anger as trading in GameStop shares is restricted

#77

Post by Semaphor » Thu, Jan 28, 2021, 5:48 PM UTC

viro wrote: post #63

EpicEng wrote: post #48

Earlier quoted context omitted.

These clowns shorted 170% of float. If that's not pure gambling teetering on market manipulation, I don't know what is.

Bruh, lets be honest its GameStop. That company IS going the way of blockbuster. "pure gambling" is a stretch everyone can read the tea leaves here. Honestly pre-covid when was the last time you went into a GameStop and saw more than two other people.

never been to game stop, but there is one next to my supermarket. I see almost always 2-3 groups of people in there, never empty. Germany though.

Re: GameStop: Anger as trading in GameStop shares is restricted

#78

Post by KMag » Thu, Jan 28, 2021, 5:52 PM UTC

Out_of_Characte wrote: post #24

gruez wrote: post #4

While the title might be true for the "amateur investors" that got in early, I strongly believe that most of them are not outwitting anyone and will be bagholders. As of this post basically everyone who bought yesterday are underwater by 50%.

Does it matter that your're underwater by 50%? The goal was to beat Wallstreet, They did. The hedgefunds should definitely take note not to play a dangerous game because losing is always on the table.

> The hedgefunds should definitely take note not to play a dangerous game because losing is always on the table.

Taken at face value, this advice boils down to never doing anything that involves a large risk. No civil rights movement, no D-Day invasions, etc.

There's certainly a reminder here about tail risk, and the ability of the market to stay irrational longer than you can stay solvent. However, the takeaway isn't "only take on big risks if failure is impossible." Taking calculated risks is an important life skill, and so is realizing that humans have pretty bad intuitions about risk.

In hindsight, we may find some funds that had 30 different short positions similar to this one. This one position blew up badly, but if the others come out moderately ahead, and they came out ahead net-net, then maybe this just validates their strategy.

Re: GameStop: Anger as trading in GameStop shares is restricted

#79

Post by betterunix2 » Thu, Jan 28, 2021, 6:01 PM UTC

SV_BubbleTime wrote: post #76

betterunix2 wrote: post #69

Earlier quoted context omitted.

Who do you think those shares are being sold to? Robinhood's brokerage side is restricting trades, but their exchange (the "shadow" exchange they use to make money without charging commissions) is still allowing buy orders, or else they have effectively suspended GME on their exchange and have to route the sell orders elsewhere. Again, it is not possible for an exchange to only allow selling of a stock, because every…

Yea... you know other exchanges that “I” can’t use, like Canadian ones are still allowing buying right?

Plenty of American brokerages have not imposed any restrictions either, and again, a brokerage is not an exchange and it is important to know the difference if you are going to be a self-directed investor.

Re: GameStop: Anger as trading in GameStop shares is restricted

#80

Post by betterunix2 » Thu, Jan 28, 2021, 6:05 PM UTC

chadash wrote: post #6

Outwit certain parts of wall street, maybe. Any hedge fund making money off of deal flow is gonna make a huge profit when there's a big spread between buy/sell prices.

Not to mention any speculators who took short positions yesterday.