Amid GameStop's explosive rally, short sellers have accumulated losses of more than $5 billion year to date in the stock, including a loss of $917 million on Monday and $1.6 billion on Friday, according to data from S3 Partners.
The big thing though is it isn't about GameStop at all. They just simply are the stock that the Wall Street vultures decided to descend upon to kill. They were already on the ropes before COVID hit, and then boom, afterwards, we all knew they weren't long for the world in their current form. That Microsoft partnered with them was a huge head scratcher to me simply because I don't see it being around for much longer.... but, the reason the stock is seeing such a surge is because Wall Street had shorted the stock to a tune of 140%. Meaning that there were 40% more short options on the stock than actual shares available. Some on reddit noticed this and basically said, lets squeeze them.
The short position these hedge funds had, the largest of which I guess, was Melvin Capitol is basically saying that they're going to owe you X number of stocks at a certain date hoping that the price drops so that they get to pocket the difference. With there being more options than stock available, these hedge funds are in a bind. They have to purchase the stock to fulfil their end of the deal, they're just now doing it at astronomically higher stock prices, which means they're losing billions. Monday was $900 million, and Tuesday was like $1.5 billion, not sure about today considering the stock doubled again. (Closed at like $150 Tuesday, Closed at $347 today) The more people who hold, the higher the stock goes. The more they buy to close their short positions, the higher the stock goes.
The reason that so many from Wall Street and their corporate media are up in arms about this and threatening to seek action is because their modus operandi for making money is fine and all, except when it is used against them.
They're all talking about the fundamentals don't match the stock price, but.... that hasn't stopped them from that in the past when it benefited them, so why are they angry now? Oh, right, they're the suckers holding the bag....
This
[yt]2h7jfNpL4QA[/yt]
is a pretty interesting interview on what's happening now and why it is hypocritical for all of these calls for action and freezing of trades with regards to these because the people who have these positions did so willingly. Reddit didn't trick them into it, they just called them on them.
The entire thing is like the 2008 crash in that this sort of 5x, 10x, or more leverage that the hedge funds are allowed to do is fine when they're making money, but when it bites them in the ass and threatens the system, they want protection. They got bailed out in 2008 and looks like they're going to get help to not face a chopping block now.... If the online peeps hadn't intervened, they'd have done what Wall Street has done to many stocks in the past, hammer it down to nothing to kill a company for profits on its corpse; but, god forbid the leopard eats their face.
I see they closed the subreddit forum now and some investment firms are putting restrictions on buying shares. Of course it has to be regulated when they lose money
I see they closed the subreddit forum now and some investment firms are putting restrictions on buying shares. Of course it has to be regulated when they lose money
The big thing though is it isn't about GameStop at all. They just simply are the stock that the Wall Street vultures decided to descend upon to kill. They were already on the ropes before COVID hit, and then boom, afterwards, we all knew they weren't long for the world in their current form. That Microsoft partnered with them was a huge head scratcher to me simply because I don't see it being around for much longer.... but, the reason the stock is seeing such a surge is because Wall Street had shorted the stock to a tune of 140%. Meaning that there were 40% more short options on the stock than actual shares available. Some on reddit noticed this and basically said, lets squeeze them.
The short position these hedge funds had, the largest of which I guess, was Melvin Capitol is basically saying that they're going to owe you X number of stocks at a certain date hoping that the price drops so that they get to pocket the difference. With there being more options than stock available, these hedge funds are in a bind. They have to purchase the stock to fulfil their end of the deal, they're just now doing it at astronomically higher stock prices, which means they're losing billions. Monday was $900 million, and Tuesday was like $1.5 billion, not sure about today considering the stock doubled again. (Closed at like $150 Tuesday, Closed at $347 today) The more people who hold, the higher the stock goes. The more they buy to close their short positions, the higher the stock goes.
The reason that so many from Wall Street and their corporate media are up in arms about this and threatening to seek action is because their modus operandi for making money is fine and all, except when it is used against them.
They're all talking about the fundamentals don't match the stock price, but.... that hasn't stopped them from that in the past when it benefited them, so why are they angry now? Oh, right, they're the suckers holding the bag....
This
[yt]2h7jfNpL4QA[/yt]
is a pretty interesting interview on what's happening now and why it is hypocritical for all of these calls for action and freezing of trades with regards to these because the people who have these positions did so willingly. Reddit didn't trick them into it, they just called them on them.
The entire thing is like the 2008 crash in that this sort of 5x, 10x, or more leverage that the hedge funds are allowed to do is fine when they're making money, but when it bites them in the ass and threatens the system, they want protection. They got bailed out in 2008 and looks like they're going to get help to not face a chopping block now.... If the online peeps hadn't intervened, they'd have done what Wall Street has done to many stocks in the past, hammer it down to nothing to kill a company for profits on its corpse; but, god forbid the leopard eats their face.
