Some rich market d-bags having to do with hedge funds talked crap about GameStop, saying its a fossil and a dying concept of a company.... So pissed off gamers, nerds, reddit users, and amateur stock traders, mostly on Robinhood (stock trading company for average investors) said "Nah bro..." and began rallying the stock by getting together and buying butt-loads of stock shares... The stock price shot up like crazy! Now because the d-bags were proven wrong and "threw in the towel," the SEC is getting involved, ruining it for everyone. So, when average folks lose the game in the stock market, it's fine... But when big-wig traders and investors lose, the game is paused and reset. Screw that. There wouldn't be a market without us! This ain't capitalism. This is oligarchy.
Comments (9)
sorted by:
They didn't just talk crap about Game Stop.
They bet a blank check that the price would go down below $4 by this Friday.
The price on the blank check will be whatever the final price per share is on Friday multiplied by the number of shares they bet would go down (probably many hundreds of thousands or maybe even millions of shares).
Now that the price is shooting up hundreds of dollars per share they're crapping their pants.
spez: at least, that's the story I've seen circulating around.
Yes, they intentionally talk shit about the company to try and short sell the stock thereby lowering the value in order to cash in on their bet. They had already dropped the value to just $3 per share, but they’re so greedy they tried to continue to devalue it by sowing fear and doubt that the company would survive. Their rhetoric was designed to get the little guy to freak out and sell everything and cause a cascade effect of selling and devaluation.
What they didn’t expect was their telegraphed moves being manipulated by the market. Now they are on the hook for having taken the risk and want to be set free despite their immoral, high risk borrowing of stock with the sole intent of forcing the valuation lower at the expense of the little guy.
I hope they bleed to death.
finally i understand what's going on. thank you for simplifying the situation for me my brain is only half working nowadays at best so thanks
Hedge funds make bets that a company will fail. They borrow stocks and immediately sell them at the current price then spend the interim trying to sow ill confidence in the company and its ability to survive. They foment fear with the intent of creating a mass selling panic thereby lowering the price of the stock far lower than the price at which they borrowed the stock from brokers.
Problem this time is they were so heavily leveraged that enough people were able to see the move they were making and in turn began to buy the stock. This raised the stock value and creates a situation where the value at payoff time will be higher (far higher) than when they borrowed the stock. The hedge fund investors will have to cover the losses and it’s billions of dollars as of now.
There are safeguards in place to protect the big fish, but they didn’t bother taking them into account, got too greedy and now will have to pay the piper for their high risk games.
This is a red pill that will go down hard for a lot of gamers who thought Trumpers were just nazis.
Uhh, any gamer over 5 years old IS a Trumper. LOL
Correct but also include how the hedge funds were selling naked stock which is illegal aka selling more shares then they owned thinking GameStop would go bankrupt and they wouldn’t have to pay out lol.
More redpills getting dispensed
I'm not sure the SEC actually did anything yet. Certain online brokerage companies stopped their users from trading the specific stock.