How Reddit Brought A Multi-Billion Dollar Hedge Fund To It's Knees

01-27-2021, 11:07 PM

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#691

Destor
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Originally Posted By Dan_S⏩

It stems the bleeding, but also drives the price up.

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.

How do we know what Melvin did with their cash infusion? We don't even know what other positions they may have had in GME along with the shorts that we do know about

Melvin is claiming they exited the short position for a huge loss closer to the front end of the crazy price action. If current short % interest is high right now, could that not be new players shorting with expiry dates further out? Do we have updated information on this type of stuff? Looking into this shorts interest stuff, I'm pretty sure people are making a lot of dangerous assumptions based on a bi-monthly report from NASDAQ

01-27-2021, 11:08 PM

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#692

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May play in the game tomorrow.

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01-27-2021, 11:14 PM

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#693

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Originally Posted By gesten⏩

Ur rite it doesn’t

Do u know how long it takes for coin base funds to reach Allybank?

Currently debating if I should or not

This I wouldn't know.

01-27-2021, 11:15 PM

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#694

Jasonw1178
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What happens if Melvin can't pay what's owed? I don't know what they are worth and able to pay, but lets say it becomes more than they can pay back?

01-27-2021, 11:22 PM

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#695

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Originally Posted By Jasonw1178⏩

What happens if Melvin can't pay what's owed? I don't know what they are worth and able to pay, but lets say it becomes more than they can pay back?

They get bailed out by a friend, which we saw earlier, or I believe the buck gets passed to the broker.

01-27-2021, 11:22 PM

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#696

luckyboy23
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I hope there's a mass/cult suicide at Melvin.

Also, locally we have commercials that say "Don't be a melvin"

01-27-2021, 11:23 PM

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#697

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Originally Posted By Ck4288⏩

They get bailed out by a friend, which we saw earlier, or I believe the buck gets passed to the broker.

I wish I had friends like that.

01-27-2021, 11:32 PM

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#698

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This makes me wonder who Melvin's clients are, or the clients of these other hedge funds being short squeezed. Hedge fund investors are typically institutional right? Corporations, pension funds, unions, etc

01-27-2021, 11:32 PM

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#699

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Originally Posted By Ck4288⏩

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.

Robinhood just came out and said GME/AMC options trades will be limited to closing positions only.

01-27-2021, 11:47 PM

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#700

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Originally Posted By Dan_S⏩

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.

Lol I don't think this is a wealth transfer from the rich to the poor. It's just a transfer from the old rich to the new rich.

A poor person is still going to look at this and complain. They don't feel better because one person was rich, now isn't, and a different person is rich. People don't even realize how often that happens. Most millionaires are self made, people go in and out of the 1% and out of the 1% all the time, it's actually pretty fluid. This is just a new group of people going into the 1% and won't appease anyone.

01-28-2021, 12:01 AM

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#701

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For all the slow ppl in the back.

Abort NOK, AMC, and BB. They are either true meme stocks or stocks with no real catalyst being pushed by bots to drive GME down.

Buy/hold GME

01-28-2021, 12:03 AM

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#702

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Originally Posted By JayCutler6⏩

Robinhood just came out and said GME/AMC options trades will be limited to closing positions only.

Where do they say that? Is that why my amc put option today got half filled

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01-28-2021, 12:05 AM

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#703

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Would anyone still put 30k on gme if they had the money to blow or too late ?

01-28-2021, 12:06 AM

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#704

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Originally Posted By strawbrerry1⏩

Combing through the wsb threads, there are lots of people using the little money they have and throwing it into gme. honestly wouldn't put it past nasdaq to halt trading or some other chit

this is not gonna end well

u wot

GME is listed on the NYSE

but the CEO of NASDAQ did come out and say theyll halt anything that has suspicious social media chatter lmao

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01-28-2021, 12:17 AM

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#705

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"The point is that there is no real point beyond showing up the pros -- proving to them that they aren't as smart as they think they are and that they don't have the ability to control everything. Which, again, has its roots in Trumpism. The entire notion of Trump's candidacy and presidency was to stick it to the elites."

https://www.cnn.com/2021/01/27/polit...ism/index.html

CNN likens r/WSB to Trump supporters...its weird how CNN non-elites like to talk down about their own social-class/strata. CNN reporters/anchors aint' hedge-fund rich. Not to mention being an anchor is maybe the least qualified white-collar type of job. Basically reading stuff that someone else wrote.

01-28-2021, 12:18 AM

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#706

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Originally Posted By butwhowasfeel⏩

u wot

GME is listed on the NYSE

but the CEO of NASDAQ did come out and say theyll halt anything that has suspicious social media chatter lmao

Yeah but suspicious social media chatter meaning people making posts etc indicating they're taking one action but they're actually doing something else, being deceiving and manipulative. Apparently the regulators have a lot of experience with and are very good at linking social media posts and specific trades by the bad actors making the posts

And that could be individuals associated with hedge funds as well. Sounds like there probably won't be anything *wrong* with what's happening in WSB for the most part

01-28-2021, 12:22 AM

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#707

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Puttin 1k on GME tomorrow fuk it selling on monday

01-28-2021, 12:30 AM

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#708

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Originally Posted By tendies⏩

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).

As I said yesterday, I think people got AMC confused with AMCX. AMCX is heavily shorted, almost 60% of float. Some people got it confused and there was no shorts fighting the upward pull in AMC. That's why it ballooned. AMCX went down because it is the stock to target, but the retail crowd got confused and their muscle was divided between 2 stocks.

01-28-2021, 12:31 AM

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#709

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Originally Posted By Wyzz⏩

For all the slow ppl in the back.

Abort NOK, AMC, and BB. They are either true meme stocks or stocks with no real catalyst being pushed by bots to drive GME down.

Buy/hold GME

You don't actually think this is true do you? Please god tell me no lmao you fukken idiot.

BB DD has been circulating for months, it has an AMZN partnership and is a huge EV/autonomous/cyber security play with a sub 10 bil mcap still.

Nokia is a 5G play with huge partnerships across the board, they have a stupid huge float though.

AMC is just people piling on to other heavily shorted companies look at the list of most shorted companies every one was huge green today.

One day scientists are going to kill us all.

01-28-2021, 12:35 AM

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#710

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01-28-2021, 12:36 AM

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#711

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Originally Posted By rootcon⏩

As I said yesterday, I think people got AMC confused with AMCX. AMCX is heavily shorted, almost 60% of float. Some people got it confused and there was no shorts fighting the upward pull in AMC. That's why it ballooned. AMCX went down because it is the stock to target, but the retail crowd got confused and their muscle was divided between 2 stocks.

that might be part of it but /wsb has been talking about AMC for quite some time now. it also went up because they just got a financing deal recently that basically takes bankruptcy completely off the table now (the CEO's words, not mine)

i'm taking a long position on AMC mostly because i know movie theaters will never go away. box office sales are too important to hollywood, so they gon keep theaters alive. once the pandemic is over, expect some joocy numbers.

article for reference:https://www.bloomberg.com/news/artic...g-equity-loans

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01-28-2021, 12:46 AM

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#712

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Originally Posted By butwhowasfeel⏩

that might be part of it but /wsb has been talking about AMC for quite some time now. it also went up because they just got a financing deal recently that basically takes bankruptcy completely off the table now (the CEO's words, not mine)

i'm taking a long position on AMC mostly because i know movie theaters will never go away. box office sales are too important to hollywood, so they gon keep theaters alive. once the pandemic is over, expect some joocy numbers.

article for reference:https://www.bloomberg.com/news/artic...g-equity-loans

It would seem WSB is using this opportunity to pump all their favorite stocks.

Originally Posted By CptClean⏩

You don't actually think this is true do you? Please god tell me no lmao you fukken idiot.
AMC is just people piling on to other heavily shorted companies look at the list of most shorted companies every one was huge green today.

AMC short interesthttps://www.marketbeat.com/stocks/NY...hort-interest/
AMCX short interesthttps://www.marketbeat.com/stocks/NA...hort-interest/

Cliffs- AMCX is the heavily shorted stock.

01-28-2021, 12:54 AM

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#713

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Originally Posted By rootcon⏩

It would seem WSB is using this opportunity to pump all their favorite stocks.

AMC short interesthttps://www.marketbeat.com/stocks/NY...hort-interest/
AMCX short interesthttps://www.marketbeat.com/stocks/NA...hort-interest/

Cliffs- AMCX is the heavily shorted stock.

oh yeah for sure.

i know a lot of people's gut reaction was to call these people bots for pushing any stock other than GME, and i'm not denying that there are bots, but it's more likely it's just WSB users trying to take advantage of the new traffic.

i don't think any of them are bad picks by any means, but if any new investor goes in expecting any of these to even come close to what's happening to GME, they're in for a rude awakening.

like always, it all comes down to due diligence and making sure you only put up how much you can afford to lose.

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01-28-2021, 01:00 AM

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#714

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Originally Posted By rootcon⏩

It would seem WSB is using this opportunity to pump all their favorite stocks.

AMC short interesthttps://www.marketbeat.com/stocks/NY...hort-interest/
AMCX short interesthttps://www.marketbeat.com/stocks/NA...hort-interest/

Cliffs- AMCX is the heavily shorted stock.

Ah yeah not the first time they've fukked that up I should have remembered.

But the rest of the statement is true that whole Short Interest ETF fukken ripppped

EDIT: GME only opened down 2% in Germany waaatch the **** out

One day scientists are going to kill us all.

01-28-2021, 01:05 AM

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#715

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Originally Posted By butwhowasfeel⏩

oh yeah for sure.

i know a lot of people's gut reaction was to call these people bots for pushing any stock other than GME, and i'm not denying that there are bots, but it's more likely it's just WSB users trying to take advantage of the new traffic.

i don't think any of them are bad picks by any means, but if any new investor goes in expecting any of these to even come close to what's happening to GME, they're in for a rude awakening.

like always, it all comes down to due diligence and making sure you only put up how much you can afford to lose.

Good points. Some of the side interest I think is due to Melvin's list of puts almost was a copy of the highest short interest stocks. So the theory was to get in on anything Melvin had shorted or lots of puts. Read that most institutions choose shorts over heavy put positions because puts have to be reported (someone else said ITT shorts have to be reported, so not entirely sure). Melvin is not the only player in this, they are just the only ones to stupidly put all their positions out in to public for people to target. The other heavily shorted stocks could get pushed up bigly by margin calls in the same way GME has (because GME has driven margin calls, and people that had GME short probably had other shorts too).

AMCX wasn't on Melvins put list, but because its so heavily shorted, it has to be on a lot of Melvin's peers lists. IMO, a good play right now is to put a small (an amount you can lose) bet on all the most heavily shorted stocks. They may go down, because the big boys are fighting for survival and doubling down. But at the same time, they have tremendous up potential.

(I don't own any AMCX btw for you guys thinking I'm trying to pump AMCX)

01-28-2021, 04:32 AM

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#716

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all i know is im selling my AMC stock at market open. i'm not in a financial position to risk it all, i'll take my small profits and leave.

The entire notion of multiple trading sites restricting or blocking GME & AMC is more troublesome for AMC than it is for the GME holders (TDAmeritrade/Robinhood/etc).

If these stocks don't "normalize" in "wallstreet deep state talk", they could collude even further and we (the public) are left holding the bags of losses.

just my opinion. stay safe especially those barely getting into it

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01-28-2021, 04:35 AM

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#717

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Holy **** gme almost at $500

01-28-2021, 04:41 AM

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#718

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Originally Posted By rocketfish⏩

all i know is im selling my AMC stock at market open. i'm not in a financial position to risk it all, i'll take my small profits and leave.

Word of advice, don't put more into these things than you care to lose. I bought 1-3 shares of several of these pump and dumpers just to have some fun.

This would be more effective (if the goal is to ruin these shorting hedge funds) if folks put in amounts that they didn't care if it plunged a few times. There's going to be big swings, the folks with puts and shorts are doubling down and bringing in their buddies as backup.