Reddit Trolls Screw Hedge Funds out of $13 Billion. Wall Street MALDING - Politics Forum.org | PoFo

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#15153219
The guy that started it is calling it dangerous now.

"Burry’s hedge fund Scion Asset Management disclosed it bought 5.3% of ailing video game retailer GameStop GME +104.8% at between $2 and $4.2 a share, spending about $15 million in total. Burry’s play was to urge GameStop to use its cash to buy back stock, potentially retiring about half of its shares outstanding. In a sharply worded letter to GameStop’s board of directors, Burry called for the company to exhaust its $300 million buyback authorization. At the time of his letter GameStop’s entire market cap was just $300 million.

Burry’s play helped set off one of the wackiest and most out of control trades in financial history, which has minted billions of dollars in paper profits for some investors, including many amateur speculators, and caused what may be billions in losses for some of the world’s most sophisticated hedge funds."

https://www.forbes.com/sites/antoinegar ... 32d9c6303b
#15153271
Wall street corps will be bailed out by their puppets in government. There is no story here. $13 billion is nothing, they've already stolen trillions and received trillions in printed bail cash.
#15153272
Saeko wrote:https://twitter.com/scottlucas/status/1354561887749296130

So now stock trading services are putting restrictions on trading GameStop and other stocks so that Hedge Funds can "recalibrate" their bets. This is 100% proof that the system is rigged against the little guy.


That generally happens when there are unusual movements in stock prices.

I doubt the hedge funds will be bailed out, though.

PS: To be specific, I doubt they will be bailed out by the government. There have already been some bailouts by other private companies.
Last edited by wat0n on 28 Jan 2021 01:46, edited 1 time in total.
#15153287
Both the subreddit wallstreetbets and their discord server were shut down for 'rule violations' today. For reference the sub had 2 million followers. Interesting timing...

I'm rooting for the little guy. With Elon Musk on our side, what could go wrong?


little guy

world's richest man that wants to rule mars and near earth orbit with his 40,000 satellites

little guy


Does not computerize.

Melvin capital has borrowed some easy money (bailout) and is now dumping to incite a sharp drop in the price and complete the short. All they have to do is wait out the bag holders who will get sweaty palms and hand their cash over to the hedge fund on wall street. You can't beat the corpo at his own game in his own system kids.
#15153308
Saeko wrote:https://twitter.com/scottlucas/status/1354561887749296130

So now stock trading services are putting restrictions on trading GameStop and other stocks so that Hedge Funds can "recalibrate" their bets. This is 100% proof that the system is rigged against the little guy.

"Recalibrate". A fancy word for changing the rules halfway through the game. :lol:
#15153317
GameStop has risen from a low of $2.57 a share when Burry was building his position this spring to over $365 by early Wednesday afternoon
https://www.forbes.com/sites/antoinegar ... 4409cf303b


Why can't he just sell these shares for profit?
#15153324
AFAIK wrote:GameStop has risen from a low of $2.57 a share when Burry was building his position this spring to over $365 by early Wednesday afternoon
https://www.forbes.com/sites/antoinegar ... 4409cf303b


Why can't he just sell these shares for profit?


Group think is much more powerful than you think. He doesn't control the majority of shares and not even close to an amount that realistically matters. He can of course collapse the gamespot stock by saying he sold his shares which would send the others in to a selling frenzy. But that would make him the villain no, in the eyes of those that won't be able to sell in time. Also groups tend to be either over optimistic or over pessimistic on questions so this seems to be the case of over optimism that it will still grow non-stop. (It will crash eventually and probably very soon) The reason for that crash is that 50-100% gains are ponzy schemes you quickly understand that you will have all of earths wealth under you within a dozen or two iterations. At least ponzy promised 50% growth in 3 months unlike the current gamestop growth of 50% per day as of late.

The juicy part is that Ponzy himself thought that all is going to be okay. Probably Bernie Maddoff also.
#15153330
So he's colluding with others to manipulate the price? I don't understand why getting a $2.7bn bail out from your backers is a better solution than reverting to buy low/ sell high. The guy was looking for copper and found gold as far as I can tell.
#15153332
AFAIK wrote:So he's colluding with others to manipulate the price? I don't understand why getting a $2.7bn bail out from your backers is a better solution than reverting to buy low/ sell high. The guy was looking for copper and found gold as far as I can tell.


Honestly, it is a complicated question beyond my or your competence to answer. It requires an impartial highly professional person to understand if this somehow interferes in the business cycle or not.

My opinion is that this is perfectly legal for now and no new regulations should be introduced. There is no moral obligation by the government to protect hedge funds from losses and regulate out the competition which is what the hedge funds are essentially asking for.

Unless the hedge funds can prove that this hurts the economy somehow unlike compared to what they are doing then all this talk is basically them stacking the deck against something they can't control. Reddit investors and small retards being successful is not illegal and actually is VERY VERY GOOD if it can be used as a gateway for common people in to the stock market. This should be encouraged and not banned or regulated. Once again, unless there is something that we don't see yet. (Crash is not one of those things that we don't see)

Also this is morally wrong to bann people from participating in the market since they succeeded while on the other side fucking bailing out the hedge funds and other banking or financial institutions. This is a fast lane to the guillotine kind of policy.
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