Game Stop Stock, GME

[Tervuren]

Originally Posted by beepbeep

No one is discussing that SEC and brokers allowed hedge funds to short 139% of the floating shares in company that was struggling but had no loans? And now there is a big scramble to save poor hedge fund...

Is there nothing that stops going over 100%
I guess it is the loss of the gambler if they do?

[Z-man]

Originally Posted by gordner

This was them putting wall street in their place as I understand it. They perceived WS shorting the stock (manipulating the value) and negated the effect with mass individual purchases.

And it is quite funny to hear the hedge funds all crying unfair to practices they perfected and engage in with impunity.

There is a big difference between those two actions. The hedge fund firms had to disclose that they were shorting the stock. The Reddit Collective made no such disclosure. Because they did not disclose their intentions, it had a major effect on the market and on GME, AMC, and others, as well as those who shorted the stock.

One may argue that a regular Joe doesn't need to disclose when they buy are sell stocks. And that is true. But when you have 3 million people who are purposefully buying stocks to force the hedge fund holders to sell because of their shorts, IMHO, that is manipulation.

If you want to consider the Reddit collective as legit, then they need to behave like a legit firm - and disclose their intentions just like the rest of wall street does.

[beepbeep]

Originally Posted by Tervuren

Is there nothing that stops going over 100%
I guess it is the loss of the gambler if they do?

No. That is the funny thing with shorts. You borrow a share from someone, tell him "I'll give it back later + some money" and you quickly sell it to someone else, planning to buy it back later (and cheaper). But that other buyer can also lend the same share to third person. Suddenly, you have two shorted contracts on one share.

If bet goes bad and share price goes up person 3 will need to buy it back (with loss) from person 4. Then person 2 will need to buy it back from person3, then give it back to person 1 + extra monies.

All of this scarity drives price up even further, making situation even worse for shorters. Losses are only limited by how high share price goes (and the solvency of shorter).

[cockerpunk]

wall street is not not letting anyone buy GME. you can sell it, but you can't search for and buy it.

you wanted market manipulation, thats it right there. unequal access, specifically and totally designed to drop a stocks price, in protection of a hedge fund's profits, over the stocks actual investors.

pathetic.

there really must be a term for when white guys who thought the world was fair, and the rich played by the rules and that the rules made sense, realize none of that is true, and in fact, everything is and has been stacked against them for a generation while wall street milks the profits of their life's work into a bunch of do nothing, add zero value, self appointed, stock managers pockets.

[beepbeep]

Ah, the wrong people are losing? So they will just disable "buy" button?? That might not go well... a market where hedge funds are not allowed to lose. Everyone is free to buy and sell as long as big guys aren't losing...

[cockerpunk]

Originally Posted by beepbeep

Ah, the wrong people are losing? So they will just disable "buy" button?? That might not go well... a market where hedge funds are not allowed to lose. Everyone is free to buy and sell as long as big guys aren't losing...

yup. there has always been two sets of rules in this world economically. those for the rich, and those for everyone else.

its amazing to see it so blatantly on display just how ****ed our economic system is.

[beepbeep]

Originally Posted by cockerpunk

yup. there has always been two sets of rules in this world economically. those for the rich, and those for everyone else.

its amazing to see it so blatantly on display just how ****ed our economic system is.

In the end, doing something like this might cost much more than what those two hedge funds were about to lose. Basically, market is based upon trust that you can buy and sell. If they game the market openly to save couple of hedge funds the trust will vanish. Really bad things happen then...major selloffs, run on the banks etc.

[widebody911]

Remember when I said that the stock market was nothing but institutionalized gambling, and you guys laughed at me and gave me the lecture on the importance of "investing" and "owning a piece of a company"?

[beepbeep]

Originally Posted by widebody911

Remember when I said that the stock market was nothing but institutionalized gambling, and you guys laughed at me and gave me the lecture on the importance of "investing" and "owning a piece of a company"?

I do not agree. I am in the trade and still believe that open, transparent market with clear rules is making sure capital is spent in best possible way.

But all of that is moot if broker is able to disable "buy" button on arbitrary instrument just because Hedge Fund betted wrong and are about to lose money.

[biosurfer1]

Originally Posted by cockerpunk

wall street is not not letting anyone buy GME. you can sell it, but you can't search for and buy it.

Not sure which brokerage you use, but GME is readily available for buying and selling on Fidelity right now.

[KFC911]

Originally Posted by biosurfer1

Not sure which brokerage you use, but GME is readily available for buying and selling on Fidelity right now.

Do ya want me to buy some and manipulate the sudden crash ?

[biosurfer1]

Originally Posted by beepbeep

But all of that is moot if broker is able to disable "buy" button on arbitrary instrument just because Hedge Fund betted wrong and are about to lose money.

So people cry foul and blame brokerages if the idiot traders don't know what they are doing lose everything and take it further:
https://www.cnn.com/2020/07/14/investing/robinhood-suicide-congress-underwood/index.html

and people also cry foul if the brokerage tries to step in and protect idiot traders.

[biosurfer1]

Clearly WSB's interest has drifted away from AMC:

NYSE: AMC
12.70 USD −7.17 (36.08%)

[beepbeep]

I am not buying anything. I am just watching with amusement.

But Robinhood (?) apparently just disabled "Buy" button for all heavily shorted stocks that are under attack by Reddit crowd. It is not helping. GME is up 20% today...the mother of short (and gamma) squeezes is coming. It will crater later but no one really cares, they are doing this for lulz and basically siphoning money from Hedgies to stock holders.

[GG Allin]

I wish they'd pick AT&T to short squeeze. If T did what GME has, I could probably quit working.

[Z-man]

So now Robinhood and Interactive Brokers are restricting trading in the "Casino Stocks" you can sell the shares of GME, AMC...etc. you just can't buy them on those platforms.

Now it gets a bit messy... that is more like market manipulation than what started this whole thing.

And I think the Reddit collective will move on to another set of stocks that are being shorted by the hedge fund guys.

Interesting - will need to see how this plays out now.

[biosurfer1]

Originally Posted by biosurfer1

Clearly WSB's interest has drifted away from AMC:

NYSE: AMC
12.70 USD −7.17 (36.08%)

Getting worse:

NYSE: AMC
7.13 USD −12.74 (64.12%)

[jyl]

Stocks can get halted for trading, similarly options trading can be halted. Not common, but when things get too crazy, it happens. Action in GME etc is crazy by any measure.

These are the rules, too bad if traders don't know them. Just like when short selling was temporarily banned in 2008 (? or 09), hedge funds were furious but they couldn't do anything about it.

[biosurfer1]

Originally Posted by beepbeep

It is not helping. GME is up 20% today...

posted a bit too quick:

NYSE: GME
330.66 USD −15.71 (4.54%)

[biosurfer1]

Originally Posted by biosurfer1

posted a bit too quick:

NYSE: GME
330.66 USD −15.71 (4.54%)

wow is this moving fast now!

NYSE: GME
297.00 USD −49.37 (14.25%)