What started out as a few brokerage house thinking they could force Gamestop in bankruptcy for an easy killing are in for a rude awaking.
-
This is bigger than a Robinhood group. The dollar amounts is beyond them.
-
This will kill the brokerage houses that shorted them and the banks that back them.
-
The brokerage houses and banks now have to sell/short into the buyers trying to save themselves. It is not working and just making their losses worse.
-
Whoever is the backing this has a plan to destroy some big players and it's working.
-
Once this is done, there will be another and another.
-
Enjoy the show.
There's no fucking way that individual investors trying to fuck the system had enough money to cause this level of a short squeeze. First, there is big money going in to this (possibly just opportunists taking advantage of a situation where the shorts were really wrong about gamestops market value). Second, the short sellers weren't securing stocks before making these trades. I think this has become standard practice, but it is technically illegal and it can cause massive issues just like we're seeing.
Doesn’t Michael Burry the autist who predicted the Great Recession (from the The Big Short) have a ton of GME stock?
Maybe he is helping to pump it. He stands to profit tremendously.
Yes he bought 3% of the company in 2019, it was actually his predictions that started this pump, and Burry commented today that he is happy that people made money because of something he said but that he is no longer bullish or bearish on gamestop because it is now in dangerous territory, Burry already sold his shares and cashed out.