Insider Trading = Bad, Outsider Trading = Worse!

[Easy-X]

In a word: GameStonks

tl;dr Hedge fund shorts GameStop* big style, reddit group get wind of this and start a grass-roots movement to drive up the price so the hedge fund loses on the basis of individuals burning a few hundred dollars to hurt the suits.

12 months ago GameStop traded at ~$4, recently it got to $20 and I guess the hedge fund were betting they'd sink back to pre-Covid prices. Unfortunately it went the other way, to the tune of ~$200 (peaking @ $350.)

All highly amusing stuff but now Tim Pool's putting it about that if Wall Street don't shut down and reverse* these trades this hedge fund and some other financial sociopaths that you wouldn't care to urinate on if they were on fire are set to lose...

$70 BILLION

There's commentators calling this bigger than the Capitol Hill Insurrection

*Tim never said that directly but the whole thing looks to be heading that way.
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[chickenstrip]

I wasn't quite sure what it was about on first hearing about it, but I think this explains it rather well:

https://www.youtube.com/watch?v=WuII3upzVKU

There must be more nazis in the world than everyone else put together
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[stinkwheel]

Hard to get my head round too, but is seems to delicious to be true.

So hedge funds take short positions on stock. Which to my understanding is they rent shares for a certain amount of time, after which they have to be returned. They immediately sell that stock and then, just before the time expires for its return, they buy it back again.

If the price has dropped in the intervening time by more than they paid to rent the stock, they have made a profit. In order to make a big profit from a small drop in price, they have to rent a huge amount of stock to do this with.

Along come a group of basement dwelling neckbeards who get organised and just for shits and giggles, start buying up those shorted stocks. They keep buying them, creating a demand which causes the share price to rise, not fall. They keep at it. The share price skyrockets beyond all reasonable expectations.

The hedge funds find themselves in the position of having sold millions of rented shares for $6 each that they are now going to have to buy back for about tree fiddy.

I always thought short selling was a cunts game.

Now the stock market is shitting itself because vultures who hoped to profit from the collapse of several companies are going to lose massive amonts of money.
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[stinkwheel]

Also, has the internet just revealed step 3?

1) Be basement dwelling neckbeard.
2) Buy gamestop shares.
3) ??????
4) Profit.
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“Rule one: Always stick around for one more drink. That's when things happen. That's when you find out everything you want to know.”
I did the 2010 Round Britain Rally on my 350 Bullet. 89 landmarks, 3 months, 9,500 miles.

[wr6133]

If you have a SIPP you may want to check you don't have part of your pension pot tied up in a fund getting hammered by this.

[Nobby the Bastard]

The whole point of shorting is so that you take advantage of everyone else who has the shares losing money.

It's a cunt's game and only fair that they get arseraped occasionally.
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[Pete.]

Couldn't have happened to a nicer bunch of parasites
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[stinkwheel]

Unfortunately, it looks like the internet neck-beards have been bitten by the greed bug too and are looking to dump what they've bought at a profit, instead of taking the principaled position of waiting it out and forcing the hedge funds to buy high.
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“Rule one: Always stick around for one more drink. That's when things happen. That's when you find out everything you want to know.”
I did the 2010 Round Britain Rally on my 350 Bullet. 89 landmarks, 3 months, 9,500 miles.

[Easy-X]

You can buy shares, hope they go up and then sell them for a profit. Most people can grasp the concept.

It is only natural then (if you're a financial sociopath) that the reverse should be true: that you can profit from a share price going down. To do this a financial instrument was created, as explained by Stinkwheel. Before anyone thinks the neckbeards have all the moral high ground in this "incident" bear in mind these guys are trading options rather than actual shares which is another artificial financial instrument (albeit probably the most ancient one) so it may be better to attack the concept of derivatives in general rather than specifically singling out shorts.
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[Easy-X]

Apparently the event is over:

https://www.independent.co.uk/news/business/gamestop-share-price-reddit-hedge-fund-melvin-capital-b1793543.html

Only a few billion lost by the hedge fund bods Bit disappointed now.
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[Kris]

[Lord Percy]

[Rebel]

https://media.gab.com/system/media_attachments/files/063/710/827/original/e6ab71ff0a47515b.jpeg

[Im-a-Ridah]

Seems fair enough to me. Outsider trading is in the public domain so everyone is on a fair footing.

[Easy-X]

[Rebel]

The hivemind are going after the silver now, supply is already short.

https://media.gab.com/system/media_attachments/files/063/956/591/original/22f52e8ca546d8c9.png

[Kris]

https://www.youtube.com/watch?v=Bya-t5yhwa0
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[Kris]

https://www.youtube.com/watch?v=LVorHHw-ZOw
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[Lord Percy]

GME stocks are going to skyrocket today when the US market opens. The hype is huge, people have been putting billboards up next to highways in America, and there was even one in Times Square.

https://www.thesun.co.uk/wp-content/uploads/2021/01/XL-REDDIT-OFF-PLAT-1.jpg?strip=all&quality=100&w=1200&h=800&crop=1

If you can, buy Gamestop's Euro equivalent (GS2C) in the German stock exchange now. The stocks are tied directly to GME so when the US market opens you'll be onto easy winnings.

As you can see, I have become an overnight stock market pro, along with the other 6 million WallStreetBets tag-alongs.

[Kris]

https://www.youtube.com/watch?v=9ToOGrUQ7ME

The Hill - Saagar Enjeti: Wall Street Elites DESTROYED, Beaten By Redditors At Their Own RIGGED Game
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[c_dug]

Nobody has mentioned the fact that hedge funds have deliberately been trading in "fake" shares too clicky for a proper explanation - conservative estimates are that hedge funds "borrowed" around 20% more shares than actually exist. I've seen estimates as high as 200% more.

In other words if they bought every single share of GME on the market, they would still not have enough to return everything they owe.

Good write up of it here.

This is why so many people are willing to throw money at seemingly overpriced shares - because so far as they can see there is more demand than can ever possibly be met, and so theoretically no ceiling to the value of their shares.

Hedgefunds pay interest on these borrowed shares so the longer they are priced out, the more it costs them.

It's a bit of a perfect shitstorm situation and I'll be interested to see what happens. Not interested enough to throw £400 at a share mind (though I did throw a few quid at AMC whilst they were cheap so I'm keeping an eye on that one too).
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[Polarbear]

Probably a stupid question but I know little about these hedge fund groups.

Is it 'real' money? In the end is someone going to have to pay huge sums out of their pocket or does it come from the same mythical money tree governments and other big institutions seem to have access to?

Are we going to see people throwing themselves out of office windows in wall street as per the great depression?

It always seems the big people come out of this sort of shit intact like that yank politician who sold all his shares a few days before covid tanked the yank economy.
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[c_dug]

In normal trading shares are bought and sold with real money that is held in real accounts. In theory every share in a company is supposed to be a real tangible thing (you can pay for actual share certificate for each share you own if you so wish). So it's real in that sense.

The invisible shares I mentioned above completely ruin that though, which is supposedly half of the issue here.

If people are trading in shares that don't even exist then it completely undermines the entire system. For example if I think I own one share equivalent to one millionth of Apple but it transpires that there are an unknown amount of additional shares circulating - the value of what I own is completely questionable.

My bet is that governments end up getting involved in sorting the mess out sooner or later, at that point the money is as real as any other government money.
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I am a bellend, I am a man of constant sorrow, I am a gummy bear, I am a rock.

[Easy-X]

Are we referring to Naked Short Selling? Sounds like a plot to push pint-sized prostitutes!

The silver thing annoys me as I was glancing through the commodities only last week. Looking at the histories though the best time to buy would have been last March when Covid hit.
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[Fat Angry Scotsman]

Only just noticed this thread. I bought GME in the dip and it is solely a speculative punt where I hope that the squeeze is real and all us diamond-hand bros are about to be taken to the moon. The money I put in isn't more than I am willing to take a total loss on anyway.

I am not a finance-bro, but from reading around I think the squeeze wholly depends on there not being enough shares in the float to suffice the buying of the hedgies when they have to close positions. The squeeze might be a bust because all the paper-hands normies shit the bed and sold off and I am lead to believe that we will find out on the 9th when the SEC release the figures on shorts.

Like I said, I am not a finance bro. Strong chance I am talking bollocks.
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