If you're out of the loop - this is the hilarious story of a subreddit - wall street bets - taking down a multi-billion dollar hedge fund... get your popcorn ready Popcorn

the hero of our story: a user named Deep****ingValue bought $50k of call options in Gamestop $GME that has turned into a $13M+ win in ~3 months.

he's a part of the subreddit r/WallStreetBets, a group of degenerate gamblers that I love.

So here's the situation.

Gamestop (GME) = a dying biz. circling the drain. Who goes to a store to buy games? It's basically a pokemon card dealership at this point. Plus with covid, malls are dead.

So some Hedge Funds are shorting the stock, betting it would go down.

One fund in particular, Melvin Capital Managment - a multi-billion dollar hedge fund...had been accruing a big short position in gamestop. Usually you don't have to disclose your shorts - but these were 'listed put options' so some clever redditors discovered the position

Melvin had a $55M+ short against GME.

except in this case - redditors saw the overloaded short position and started buying the stock, as a "short squeeze" against melvin. Now the "borrowed" shares were due, but redditors refused to sell, demanding higher and higher prices.

to be clear. This has nothing to do with gamestop as a business. They are just a piece of rope being used in a tug of war between internet nerds and wall st suits.

the rally cry on r/wallstreet bets:

"we can remain retarded for longer than they can stay solvent!"

Melvin lost $2B+ in like 2 weeks, and just had to get bailed out by 2 other funds just to cover it's losses from the shorts.

It's not quite George Soros "Breaking the Bank of England" - but it's close.

The yolo traders of reddit just broke a multi-billion dollar hedge fund


"Why can't Melvin capital just uninstall robinhood and reinstall it to restore their save game to get their money back????" - u/dopexile


short squeezes - and day trading - are stressful and super volatile.

But... I'm here for the petty fight between internet trolls and wall st.

And in that fight, i'm going with the neckbeard cat guy rather than goldman sachs suit. $50k on $GME and $BB at market open baby Smiling face with open mouth and cold sweatSmiling face with open mouth and cold sweatSmiling face with open mouth and cold sweat


congratulations to the rando new millionaires from this






Source:

Cliffs: Multi Billion Dollar Hedge Fund tries to short -meaning borrow and sell the stock, to buy back at a lower value and make profit on the difference- a stock.

Redditors buy the stock, and refuse to sell it to the Hedge Fund driving the price through the roof.

Multi Billion Dollar Hedge fund lost billions buying back stock.




Beta's thoughts:For better or worse, this is an example people power when it comes to the finance economy. I wonder how many coordinated efforts like this are going to bring Multi-Billion hedge funds to their knees, now that the cat is out of the bag?

A guy at my work put quite a lot of his money in to this before Christmas. He says it's still not over because of some shorts expiring on Friday or something. He hasn't sold and still thinks there's money to be made.

as much as I despise 99% of reddit, Wall Street Bets is great for lols and watching dipchits lose their life savings

I've been following this GME debacle and it's fukkinwildhow much money some of those Redditards made

Yeah but the shorts just doubled down and gamestop stock is still short 139% of float.https://www.zerohedge.com/markets/af...at-still-short

Probably why it dropped from 160 to whatever it is now. Whatever shorting was covered was just newly shorted at record levels.

(disclaimer, I lost $70 on my 1 share)

good these funds been fking over ppl for decades

Balls deep in GME and in WSB. The short squeeze has not even started, it will be a sight to behold when the squeeze is on!

No WSB just caught the MM with their dicks hanging out and took advantage of it. Melvin capital did it to themselves, they got greedy overshorting GME and they deserve to lose their shirts over it.

I know loke %20 of what is in OP post

I dont understand a lot of these terms lol

Not much of a trader but what about when shorting buy options to prevent huge losses? Say for every short position, an equal number of call options to offset should the stock price shoot up

love it.

weaponized autism strikes again

GME looking juicy at open.

Go back to reddit *******

Those who made money off GME already have. Those who bought in yesterday or are holding are suckers.


WSB isn't some fun way to make money together. It's pump and dump schemes behind memes and jokes instead of phone calls to grandma. GME was an awesome play because there was some strategy to it. But mostly it's:

- dude buys stock
- dude tries to meme others into buying the stock
- it catches on
- dude sells stock and makes money
- those late to the party lose money


and repeat

Yeah, I agree.

I think though that because this story has gone viral, instead of simply pumping and dumping coordinated short squeezing hedge funds may become a trend.

Just took out my initial investment. Will let the profit ride and whatever happens happens. #freeroll

that's cuz a lot of them there are from the chans

and there is a lot of lols there

Nah. This hedge fund was just stupid. Should've just bought call options.

great thread
repped op for
awarness

They're going all in on blackberry now

These guys think of themselves as plebes dethroning the 1%ers

You know who's probably really winning in this? The owners of Robinhood. These WSBers are using the zero-fee trading platform to take shots at fat cats while the Robinhood-owning fat cats are likely making bank on this activity

i think there a lot of "quiet" funds coming in and dropping big money but not saying anything

who wouldn't want to make 100% gains in two days

this is beautiful lmao

Legit have no idea what any of this means. Can someone provide me with brief rundown of the situation for reps

Do agree that WSB is one of the few tolerable subreddits

Did anyone make a million in a week on this ?

sure they are, physics/maths guys from Stanford with an immigrant background

why not?

No reason why not, their business model is crazy successful

We need to harness the power of the Misc to do something like this.