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How Reddit Brought A Multi-Billion Dollar Hedge Fund To It's Knees
01-27-2021, 10:13 PM
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#661
Originally Posted By Coach
One consequence is that they will begin liquidating their other investments in order to cover. Maybe enough to see some big drops in our other longer term, safer holdings. We’ll seeSo Friday will be a mad rush to sell? And the prices plummet back down?
Edit: or assume the majority holds and they can’t cover their shares? Then what? They go bankrupt? Or do they have to pay penalties and continue to try to buy back shares for their short?
Edit: or assume the majority holds and they can’t cover their shares? Then what? They go bankrupt? Or do they have to pay penalties and continue to try to buy back shares for their short?
01-27-2021, 10:15 PM
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#662
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I'll also add that Wednesday is when they have to disclose how much is still shorted.
There could have been a worry that enough people got cold feet (paper hands) and sold for the hedges to cover.
But we got the numbers and they'restillover 100%.
They're playing chicken because they think they're going to win. This has the potential to be the largest wealth transfer from the rich to poor in history.
There could have been a worry that enough people got cold feet (paper hands) and sold for the hedges to cover.
But we got the numbers and they'restillover 100%.
They're playing chicken because they think they're going to win. This has the potential to be the largest wealth transfer from the rich to poor in history.
01-27-2021, 10:15 PM
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#663
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you are honestly a ******* if you are siding with the govt/sec/wall street on this.
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If you are reading this - go do 100 push ups.
01-27-2021, 10:18 PM
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#664
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Originally Posted By Darkhare⏩
the Tesla or the donated games from Game stop ?wow, That's a damn smart PR move.
MR.PHF '09
“Do you see over yonder, friend Sancho, thirty or forty hulking giants? I intend to do battle with them and slay them.”- Don Quixote
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'Cause I went from negative to positive
And it's allGood..."
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01-27-2021, 10:19 PM
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#665
01-27-2021, 10:20 PM
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#666
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Originally Posted By Ausaric⏩
i avoided GME for a reason. its getting to the point where SEC or brokers will have to pull the plug in some way or risk major liquidiations margin calls in the market triggering a market wide sell off. I think it has limited upside for this reason, but still pretty much unlimited downside. which is why AMC and NOK are safer plays imo.Attaboy. Throw some in GME too. It’s not too late. Be a part of history.
01-27-2021, 10:22 PM
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#667
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Originally Posted By TugOfPeace⏩
the shorts can be forced to liquidate by their broker/a governing body like the SEC. so they might not get a say in how long they hold out. I dont think we ever hit infinity squeeze stage - it would just cause too much chaos when the SEC can relatively easily prevent it at this point. imoIf they don't have the funds to buy at $1k/share, what then.. it's interesting because you have to think, if somehow the hedge funds don't buy at $1k/share and they declare bankruptcy or something, when WSB wants to offload their shares, who's going to buy them at $1k/share? I have a bad feeling about those guys (WSB). Seems like they might not ever cash out.
01-27-2021, 10:23 PM
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#668
- Coach McGuirk
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Originally Posted By TugOfPeace⏩
Thanks bruh!Options expire worthless at the end of after hours trading on Friday so if anyone were to sell I'd assume they'd want to sell then.. but it's kind of tricky because if they sell, they will drive the price down for hedge funds to buy back lower. Also I'm not sure what kind of options/trade the hedge funds made because everyone is talking about options expiry on Friday.
My understanding is that if the hedge funds can't cover their shares they will 1) go bankrupt and 2) get sued.
Now if people continue to hold until Monday.. that's when you can expect major dumps, in my opinion.
If I were playing this, I would just pick a price at which I'm comfortable selling Friday and get out while I can, because the SEC may intervene via suspending the stock, halting the stock, or colluding with brokers to make trades inaccessible while short positions are covered. However, I'm not playing this because I don't want to take the risk. Already made $10k off AMC premarket today when nobody know much about it so good enough for me.
My understanding is that if the hedge funds can't cover their shares they will 1) go bankrupt and 2) get sued.
Now if people continue to hold until Monday.. that's when you can expect major dumps, in my opinion.
If I were playing this, I would just pick a price at which I'm comfortable selling Friday and get out while I can, because the SEC may intervene via suspending the stock, halting the stock, or colluding with brokers to make trades inaccessible while short positions are covered. However, I'm not playing this because I don't want to take the risk. Already made $10k off AMC premarket today when nobody know much about it so good enough for me.
Is it only GameStop expiring on Friday or all the targeting stocks right now?
Specifically AMC, BB, and Bbby? I understand Nokia isn’t actually in a short squeeze.
01-27-2021, 10:23 PM
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#669
- Jasonw1178
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Originally Posted By moosik85⏩
This part I can agree with. It's been going on for a very long time though. They make the rules to the game so that some people can make money hand over fist but when some common person figures it out and starts getting rich, they will call it theft, fraud, cheating, ect and change the rules. When the banks, or huge corporations go under, the government comes and bails them out. They will even package it to sound like the common person is being bailed out but in reality, the common person might break even, but the elites will actually make money off of it. Such as when GM was going under, and the banks when the housing market popped. So now some nerds on the internet figured out a way to beat the hedge fund fat cats at their own game and so now we are going to change the rules and they are even stepping in to try to prevent it from getting too bloody. Same thing when Joe Biden said that he's only going to raise taxes on the rich.Look at we are witnessing now. Multiple billion dollar hedge funds got caught selling more shares than there is in existence with money that doesn’t exist and the establishment is closing ranks to keep the farce going.
01-27-2021, 10:23 PM
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#670
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I didn’t buy cause I can’t (lost sS card so Robin Hood can’t verify me) and webull takes like weeks to transfer funds I think. Same with ally investment
But I’m still sitting back and enjoying this show of fukin over the corrupt system
Realistically I think it’s gone crash hard asf tho from people taking profits, also heard talks the squeeze actually happened and the only thing holding gme up is hopium lol
Also heard talks of them just freezing the market for months until reddit actually sells
Who knos tho, I’d take profits at 1k if I didn’t have much invested. If I had like 100k invested I’d take profits way earlier
Also I think blockbuster rose like 800% at open and it’s in one of the list for most over shorted stocks yet haven’t seen it mentioned here
But I’m still sitting back and enjoying this show of fukin over the corrupt system
Realistically I think it’s gone crash hard asf tho from people taking profits, also heard talks the squeeze actually happened and the only thing holding gme up is hopium lol
Also heard talks of them just freezing the market for months until reddit actually sells
Who knos tho, I’d take profits at 1k if I didn’t have much invested. If I had like 100k invested I’d take profits way earlier
Also I think blockbuster rose like 800% at open and it’s in one of the list for most over shorted stocks yet haven’t seen it mentioned here
01-27-2021, 10:24 PM
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#671
01-27-2021, 10:24 PM
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#672
Originally Posted By JayCutler6⏩
Makes sense. That’s why I only put a small portion of my portfolio into it. Not going all-in.i avoided GME for a reason. its getting to the point where SEC or brokers will have to pull the plug in some way or risk major liquidiations margin calls in the market triggering a market wide sell off. I think it has limited upside for this reason, but still pretty much unlimited downside. which is why AMC and NOK are safer plays imo.
01-27-2021, 10:26 PM
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#673
- Ck4288
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Gonna try and break this down Barney style for my boyos.
Friday is when the squeeze may potentially begin. It also may not start until next week.
When it DOES start, the people who are holding short positions have what’s called “days to cover” there’s an equation for figuring it out,and it’s determined by average daily volume moved. but the estimate is around 6 days right now (give or take)
So no, it shouldn’t be a mad rush to sell, it’s spread out across the Days to cover. Theoretically the longer you hold the higher the price. Basic supply and demand there.
In practice, with all the people throwing in lunch money, it may go a bit faster because volumes will exponentially raise.
But I doubt it’s going to be a “keep your finger on the trigger flash sale.
However, it is a zero sum game and someone will get burned in the long run, so don’t get greedy.
Friday is when the squeeze may potentially begin. It also may not start until next week.
When it DOES start, the people who are holding short positions have what’s called “days to cover” there’s an equation for figuring it out,and it’s determined by average daily volume moved. but the estimate is around 6 days right now (give or take)
So no, it shouldn’t be a mad rush to sell, it’s spread out across the Days to cover. Theoretically the longer you hold the higher the price. Basic supply and demand there.
In practice, with all the people throwing in lunch money, it may go a bit faster because volumes will exponentially raise.
But I doubt it’s going to be a “keep your finger on the trigger flash sale.
However, it is a zero sum game and someone will get burned in the long run, so don’t get greedy.
01-27-2021, 10:30 PM
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#674
- Coach McGuirk
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Originally Posted By Ck4288⏩
Are these calculations/timelines posted anywhere?Gonna try and break this down Barney style for my boyos.
Friday is when the squeeze may potentially begin. It also may not start until next week.
When it DOES start, the people who are holding short positions have what’s called “days to cover” there’s an equation for figuring it out,and it’s determined by average daily volume moved. but the estimate is around 6 days right now (give or take)
So no, it shouldn’t be a mad rush to sell, it’s spread out across the Days to cover. Theoretically the longer you hold the higher the price. Basic supply and demand there.
In practice, with all the people throwing in lunch money, it may go a bit faster because volumes will exponentially raise.
But I doubt it’s going to be a “keep your finger on the trigger flash sale.
However, it is a zero sum game and someone will get burned in the long run, so don’t get greedy.
Friday is when the squeeze may potentially begin. It also may not start until next week.
When it DOES start, the people who are holding short positions have what’s called “days to cover” there’s an equation for figuring it out,and it’s determined by average daily volume moved. but the estimate is around 6 days right now (give or take)
So no, it shouldn’t be a mad rush to sell, it’s spread out across the Days to cover. Theoretically the longer you hold the higher the price. Basic supply and demand there.
In practice, with all the people throwing in lunch money, it may go a bit faster because volumes will exponentially raise.
But I doubt it’s going to be a “keep your finger on the trigger flash sale.
However, it is a zero sum game and someone will get burned in the long run, so don’t get greedy.
01-27-2021, 10:33 PM
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#675
01-27-2021, 10:35 PM
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#676
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Originally Posted By Ck4288⏩
caveat though - this has been a very public affair. every news station is reporting it, ppl like Mark Cuban, Portnoy, AOC, Trump Jr are all tweeting about it. Alot of eyes on this right now. SEC/governing bodies may step in at any time and pull the plug in any myriad of ways. in 08 they banned short selling. Could see a similar rule change here or something to that effect.Gonna try and break this down Barney style for my boyos.
Friday is when the squeeze may potentially begin. It also may not start until next week.
When it DOES start, the people who are holding short positions have what’s called “days to cover” there’s an equation for figuring it out,and it’s determined by average daily volume moved. but the estimate is around 6 days right now (give or take)
So no, it shouldn’t be a mad rush to sell, it’s spread out across the Days to cover. Theoretically the longer you hold the higher the price. Basic supply and demand there.
In practice, with all the people throwing in lunch money, it may go a bit faster because volumes will exponentially raise.
But I doubt it’s going to be a “keep your finger on the trigger flash sale.
However, it is a zero sum game and someone will get burned in the long run, so don’t get greedy.
Friday is when the squeeze may potentially begin. It also may not start until next week.
When it DOES start, the people who are holding short positions have what’s called “days to cover” there’s an equation for figuring it out,and it’s determined by average daily volume moved. but the estimate is around 6 days right now (give or take)
So no, it shouldn’t be a mad rush to sell, it’s spread out across the Days to cover. Theoretically the longer you hold the higher the price. Basic supply and demand there.
In practice, with all the people throwing in lunch money, it may go a bit faster because volumes will exponentially raise.
But I doubt it’s going to be a “keep your finger on the trigger flash sale.
However, it is a zero sum game and someone will get burned in the long run, so don’t get greedy.
01-27-2021, 10:35 PM
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#677
Originally Posted By TugOfPeace⏩
Those shorts have to be covered. If the shorts becomes insolvent, all assets are liquidated to cover. If those aren't enough, the brokerage is on the hook and they start covering. If those aren't enough, the brokerage has to start liquidating to cover. If its still not enough, it bubbles up to the next bank in the chain.If they don't have the funds to buy at $1k/share, what then.. it's interesting because you have to think, if somehow the hedge funds don't buy at $1k/share and they declare bankruptcy or something, when WSB wants to offload their shares, who's going to buy them at $1k/share? I have a bad feeling about those guys (WSB). Seems like they might not ever cash out.
The stocks HAVE TO BE COVERED. That is the end of the story. No matter how much it goes to, IT HAS TO BE COVERED.
01-27-2021, 10:35 PM
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#678
- digital022
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What's stopping Melvin from buying shares to cover their shorts with the $3B they obtained. $10.3B flowed into Gamestop today. Could $3B of it not been theirs?
Your schtick sucks and it screams insecurity.
01-27-2021, 10:37 PM
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#679
01-27-2021, 10:38 PM
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#680
01-27-2021, 10:39 PM
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#681
- Ck4288
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Originally Posted By JayCutler6⏩
That could be true, I think that it may actually help though. Now that it’s in the spotlight, I think it may actually make them a bit more careful with how they react.caveat though - this has been a very public affair. every news station is reporting it, ppl like Mark Cuban, Portnoy, AOC, Trump Jr are all tweeting about it. Alot of eyes on this right now. SEC/governing bodies may step in at any time and pull the plug in any myriad of ways. in 08 they banned short selling. Could see a similar rule change here or something to that effect.
01-27-2021, 10:40 PM
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#682
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Originally Posted By digital022⏩
It stems the bleeding, but also drives the price up.What's stopping Melvin from buying shares to cover their shorts with the $3B they obtained. $10.3B flowed into Gamestop today. Could $3B of it not been theirs?
They did get a cash infusion yesterday, andbought more shorts.
There's no good ending for them here. Even if everyone on WSB had a change of heart and sells, the price still jacks up because there are less shares available than they need to buy. At the current price they need over $30 billion to cover their short positions.
01-27-2021, 10:40 PM
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#683
01-27-2021, 10:42 PM
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#684
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Originally Posted By Coach
I dont think any of the others are in the same situation Gamestop.Thanks bruh!
Is it only GameStop expiring on Friday or all the targeting stocks right now?
Specifically AMC, BB, and Bbby? I understand Nokia isn’t actually in a short squeeze.
Is it only GameStop expiring on Friday or all the targeting stocks right now?
Specifically AMC, BB, and Bbby? I understand Nokia isn’t actually in a short squeeze.
A lot of clowns are just following the herd and buying up things for reasons they dont understand.
01-27-2021, 10:47 PM
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#685
- Ck4288
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I’m staying out of AMC, there’s no squeeze and the company has crazy debt. There’s really no reason for it to be ballooning besides spec, and that’s the kind of thing the SEC will absolutely shut down.
The GameStop thing is a perfect storm of a big firm getting greedy and using a grey area to their advantage and getting found out about it.
The others are just FOMO
So yes, the prices probably*** will go up because of hype. But there’s no value, so what goes up will come down.
The GameStop thing is a perfect storm of a big firm getting greedy and using a grey area to their advantage and getting found out about it.
The others are just FOMO
So yes, the prices probably*** will go up because of hype. But there’s no value, so what goes up will come down.
01-27-2021, 10:47 PM
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#686
01-27-2021, 10:52 PM
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#687
Originally Posted By BigBallsMcgee⏩
This. Specially AMC, that is a straight up meme stock. It might get pumped another day or two. But there is going to be a lot of bag holders on that when it crashes back to $5 a share.I dont think any of the others are in the same situation Gamestop.
A lot of clowns are just following the herd and buying up things for reasons they dont understand.
A lot of clowns are just following the herd and buying up things for reasons they dont understand.
At this point it is just FOMO. Everyone is desperate to find the 'next GME,' but there is no next GME. The only thing we've seen close to this is the VW short squeeze in 2008. And even that was different. The crazy thing is that people are looking for the 'next GME,' but the GME squeeze hasn't even happened. At this point everything is already in motion. Friday we will have a gamma squeeze and the real squeeze will be sometime the following week(s).
01-27-2021, 10:58 PM
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#688
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Originally Posted By gesten⏩
I don't think Etrade asks for all those thingsI didn’t buy cause I can’t (lost sS card so Robin Hood can’t verify me) and webull takes like weeks to transfer funds I think. Same with ally investment
But I’m still sitting back and enjoying this show of fukin over the corrupt system
Realistically I think it’s gone crash hard asf tho from people taking profits, also heard talks the squeeze actually happened and the only thing holding gme up is hopium lol
Also heard talks of them just freezing the market for months until reddit actually sells
Who knos tho, I’d take profits at 1k if I didn’t have much invested. If I had like 100k invested I’d take profits way earlier
Also I think blockbuster rose like 800% at open and it’s in one of the list for most over shorted stocks yet haven’t seen it mentioned here
But I’m still sitting back and enjoying this show of fukin over the corrupt system
Realistically I think it’s gone crash hard asf tho from people taking profits, also heard talks the squeeze actually happened and the only thing holding gme up is hopium lol
Also heard talks of them just freezing the market for months until reddit actually sells
Who knos tho, I’d take profits at 1k if I didn’t have much invested. If I had like 100k invested I’d take profits way earlier
Also I think blockbuster rose like 800% at open and it’s in one of the list for most over shorted stocks yet haven’t seen it mentioned here
01-27-2021, 11:02 PM
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#689
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Originally Posted By tendies⏩
VW had a 12% short. AMC is at like 68% I believe.This. Specially AMC, that is a straight up meme stock. It might get pumped another day or two. But there is going to be a lot of bag holders on that when it crashes back to $5 a share.
At this point it is just FOMO. Everyone is desperate to find the 'next GME,' but there is no next GME. The only thing we've seen close to this is the VW short squeeze in 2008. And even that was different. The crazy thing is that people are looking for the 'next GME,' but the GME squeeze hasn't even happened. At this point everything is already in motion. Friday we will have a gamma squeeze and the real squeeze will be sometime the following week(s).
At this point it is just FOMO. Everyone is desperate to find the 'next GME,' but there is no next GME. The only thing we've seen close to this is the VW short squeeze in 2008. And even that was different. The crazy thing is that people are looking for the 'next GME,' but the GME squeeze hasn't even happened. At this point everything is already in motion. Friday we will have a gamma squeeze and the real squeeze will be sometime the following week(s).
You're correct about GME though. The actual squeeze likely happens Monday/Tuesday next week and lasts until the following week.
Edit:Hedge funds lose $30 billion on VW infinity squeeze
The big issue was that no one could get the shares. What WSB is doing is making sure that happens indefinitely for any stock over shorted. They're focused on GME right now, but these other stocks it's definitely happening to.
01-27-2021, 11:03 PM
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#690
Originally Posted By Dan_S⏩
das it , ill probably do the same as an FU to wall streetThey shorted over 100% of the stock, and it's still well over that.
This means they need tobuymore than 100%. They need to buy every single share and then some.
This is why WSB is saying youholduntil well after $1k/share. Because they have to buy at whatever price you sell at.
I did an AMC play today, but I'm going to throw $1k into GME tomorrow just as an F-U to Wall Street.
This is class warfare now.
This means they need tobuymore than 100%. They need to buy every single share and then some.
This is why WSB is saying youholduntil well after $1k/share. Because they have to buy at whatever price you sell at.
I did an AMC play today, but I'm going to throw $1k into GME tomorrow just as an F-U to Wall Street.
This is class warfare now.
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