Hedge funds borrow stocks and sell them immediately with the intent of causing the price to go down before they have to pay back the loan. The difference is the amount they can pocket as profit. This was happening to a few stocks, but instead of being happy with a 5x decrease in value they continued to try and “short” the stock price. They became so leveraged in the risk that their moves became telegraphed and enough people were able to buy the stock that it went up in value much higher than when hedge funds borrowed the stock. Hedge funds bet on failure and pull dirty tricks to lower stock values before having to pay off the loan. This time they were beaten at their own game and will owe billions to the brokers on the loan. The secondary issue is it has exposed the rigged nature of the system because they have been successful in shutting down the purchasing of the stock by the little guy in an attempt to minimize increases in the stock value. The more we buy, the more they will owe and it will require major investors to pay off the loans to the tune of around 4 billion dollars.
Exactly.
She doesn’t even know what she’s saying. It’s all bullshit, all the time.
Hedge funds borrow stocks and sell them immediately with the intent of causing the price to go down before they have to pay back the loan. The difference is the amount they can pocket as profit.
This was happening to a few stocks, but instead of being happy with a 5x decrease in value they continued to try and “short” the stock price. They became so leveraged in the risk that their moves became telegraphed and enough people were able to buy the stock that it went up in value much higher than when hedge funds borrowed the stock.
Hedge funds bet on failure and pull dirty tricks to lower stock values before having to pay off the loan. This time they were beaten at their own game and will owe billions to the brokers on the loan.
The secondary issue is it has exposed the rigged nature of the system because they have been successful in shutting down the purchasing of the stock by the little guy in an attempt to minimize increases in the stock value. The more we buy, the more they will owe and it will require major investors to pay off the loans to the tune of around 4 billion dollars.
Two wings, same fowl.
Squeeze their short and prevent them from stealing your money.
The only thing that really made it a meme was the disclaimer at the bottom in tiny writing.
Yes, two wolves and a sheep deciding what’s for lunch.
The problem we face is voting has been undermined. Hence, those who betray our interests are bound to be placed in positions of power one after another.
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.
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.
Fuck youuuuu!
Those are just for strike outs. Kek.
You’re in la la land.
The deep state is in complete control and will do what they want at will. Trump is nothing at this point.
The assault on the bill of rights will continue until the populace doesn’t even understand how it became to exist. God given rights will be a thing of the past.
Other hedge funds to follow.
That’s usually temporary. Sometimes my grammar edits are immediate. Sometimes they simply never take hold.
They are to consider our proposals, not the other way around. Couldn’t care less what she wants as an individual.
Not to be a stickler, but the word democrat or democratic is nowhere to be found in our constitution. We are a constitutional, representative Republic. The politicians are to represent their constituents. Being perfect would mean following the will of the voters. Anything else is, de facto, imperfect.
Considering the state of affairs with insecure voting and the popularity contest that has ensued, I don’t see a difference between anyone running for office as they aren't beholden to the people. You may feel good about your choice, but in the end they all go against the will of the people.
The part you may not understand is these stocks are borrowed with the intent on paying later. They use the time to create an artificial situation where the stock drops in value (betting on failure). The stocks are immediately sold before the “short” and the difference after the decline is the amount they will keep in their pocket.
Barrow and sell at $10 bucks per share immediately, manufacture a decrease, pay back $1 per share when the loan is due and keep the other $9 per share.
What happened here is they manufactured 5 different decreases and dropped the GameStop stock value all the way to $3, but instead of calling it good they tried to continue short selling. The leveraged stocks were at 100% and enough people noticed and jumped on the bandwagon to buy the stock instead. Now, the value jumped higher than the value at which they borrowed the stock and will have to dump billions in to pay off the loan to brokers.
It’s happening with many other stocks where short selling was telegraphed to the point that the little guy is buying instead of selling. Values are skyrocketing instead of plummeting. It’s a win for main street and the losers are crying foul. They never thought their vulture trading would come back to bite them in the ass.
Came for this. Thanks, ‘pede.
TLDR.
We sided with the law. That’s was our only failure.
Deep state is in control and taking the high road will never result in its removal.
Hedge funds bet on failure. They have become so predictable that it was speculated in advance and the proper moves were made by enough people to create major losses for vultures.
Consider it an interception at the goal line because the quarter back never scanned the field and telegraphed his pass to a predetermined receiver.
It’s happening with other stocks as well and I suspect the big fish will do whatever necessary to stop the bleeding and prevent this from happening in the future by crying foul despite the inherent risks of the game.
No, this is about hedge funds betting on failure in order to short a stock, but becoming so predictable that they were taken advantage of. These aren’t your normal investors and the little guy isn’t at risk unless he is elbow deep in high risk.
It remains to be seen how this will effect the future of this type of betting. There are “safeguards” in place that protect the vultures from telegraphing their moves. It may be a new dawn on reducing the ability to bet on failure successfully.
There’s been an influx of 2 billion on the losses which are mounting to some 30%. If the trend of being in front of the move isn’t a one off, you might see a second, well planned reaction to the supplemental cash injected. That would be glorious and put a sense of fear into assholes looking to crate failure for their own gain.
Looks like they telegraphed their moves one too many times. Will be interesting to see how “Redditor’s” shift to the influx of the 2 billion. Seems that’s a move they should see coming as well. Would be nice if they have a second move to crush those who bet against fledgling companies.
This could be the start of a new era where investors and hedge fund managers are afraid to bet on failure.
She left her constituents high and dry as she ran for the presidency. Tulsi first, amiright?
“as she pursues the Presidency.”
This will be far more lucrative as she draws donations from unsuspecting morons who believe they can vote her into office.
Nothing about her move is based on honesty and I promise she won’t be president, but will get rich trying. Just ask Jill, it works.
Yes, my comment wasn’t directed at your post, per se.
Just came to mind that nobody will question to numbers and 70% will be shouted to the moon just like “98% of scientists agree.”
Hedge funds borrowed the stocks at one price with the intent of causing the value to drop before they had to pay off the loan. It’s a game of betting on failure and artificially creating failure to cause a cascade of devaluation.
Borrow at 10 bucks per share, sell immediately at 10 bucks per share. Use the time before having to pay off the loan to lower the value of the stock price. Talking shit about the company, saying they’ll go out of business, causing a mass rush to sell before value drops. If it drops to 1 dollar when you have to pay it back, you keep 9 bucks per share as profit.
This time, the hedge funds got so overly greedy they tried to short the stock one too many times. This made them so heavily leveraged that their risk was plainly evident even to the little guy. Enough little guys bought the stock that it’s value shot up higher than when the hedge fund borrowed it. Now, the hedge funds owe the brokers for a stock that is more valuable than when they borrowed and sold it. They owe billions.