Reddit Trolls Screw Hedge Funds out of $13 Billion. Wall Street MALDING - Page 4 - Politics Forum.org | PoFo

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#15153455
noemon wrote:If my exchange allowed me to short Gamestop today I would have made 3.25 million with 10k within the hour.

Obviously more people had the same idea and the brokers blocked people from shorting Gamestop which defeats the purpose of trading in the first place.


When shorting you're borrowing the shares from your broker. E.g. here:

Here is how the short sale process works:

You place the short sale order through your online brokerage account or financial advisor. Note that you have to declare the short sale as such, since an undeclared short sale amounts to a violation of securities laws.

Your broker will attempt to borrow the shares from a number of sources, including the brokerage's inventory, from the margin accounts of one of its clients or from another broker-dealer. Regulation SHO from the Securities and Exchange Commission (SEC) requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed (so that it can be delivered to the buyer on the date that delivery is due) before effecting a short sale in any security; this is known as the “locate” requirement.

Once the shares have been borrowed or “located” by the broker-dealer, they will be sold in the market and the proceeds deposited in your margin account.


https://www.investopedia.com/articles/i ... rt-selling
#15153462
Rugoz wrote:When shorting you're borrowing the shares from your broker. E.g. here:


The one thing that's always left out of this definition is that you have to pay interest throughout the time that you are holding the short position. After all, you are borrowing (i.e. taking a loan).
#15153466
Rancid wrote:The one thing that's always left out of this definition is that you have to pay interest throughout the time that you are holding the short position. After all, you are borrowing (i.e. taking a loan).

And there is no upper limit on potential losses. It's just a perfect storm. :)

#15153473
Rancid wrote:The one thing that's always left out of this definition is that you have to pay interest throughout the time that you are holding the short position. After all, you are borrowing (i.e. taking a loan).


My point is the broker has to find the stocks in question. Noemen was probably too late, he should have shorted yesterday.

I mean I'm not a an expert on this, but shorting a stock in free fall seems almost impossible for obvious reasons. For a trade to happen to you need people to agree on it.
#15153482
Potemkin wrote:And there is no upper limit on potential losses.

Unless you're friends with Ken Griffin, evidently. ;)

One of the funniest things about this episode is that because of Robinhood's tie-up with Citadel, Citadel was almost certainly front-running all of the Gamestop trades while the stock was on the way up. So they were skimming a nice profit while their idiot friends at Melvin Capital were getting torched, only to then come in and "save" them in exchange for a nice chunk of equity. Fucking sociopaths. :lol:
Last edited by Heisenberg on 28 Jan 2021 21:42, edited 1 time in total.
#15153483
noemon wrote:The market operates under the assumption that trades will be honoured either way of the pendulum.

A stock in free fall is a stock to short .


A stock in free fall is a stock to short, but nobody might be willing to borrow you the shares to do it.

Similarly, it can be impossible to sell a stock in sufficient quantities when it is in free fall, because everyone wants to sell and nobody wants to buy. Unless of course your ask price is very low. The last price however is not necessarily representative of the price you can ask to complete a trade.
#15153485
Heisenberg wrote:Unless you're friends with Ken Griffin, of course. ;)

One of the funniest things about this episodes is that because of Robinhood's tie-up with Citadel, Citadel was almost certainly front-running all of the Gamestop trades while the stock was on the way up. So they were skimming a nice profit while their idiot friends at Melvin Capital were getting torched, only to then come in and "save" them in exchange for a nice chunk of equity. Fucking sociopaths. :lol:


It's a dog eat dog world out there.

CAPITALISM! CAPITALISM! CAPITALISM!
#15153531
Redditors basically tried to save all their favourite retro companies from bankruptcy, save jobs and save franchisees. They even invested in Blockbuster (because the brandname has merchandising retro-value now as people get nostalgic for the 90s).

Wall Street killed it as usual.

They'd rather blame AMC for their impending bankruptcy than put the blame where it belongs. With the film studios for producing shitty SJW-targeting crap.

Grassroots investors try to save cinemas, and wall Street decides to help kill them instead.
#15153547
The people behind pulling the strings at the app Robinhood need to go to jail. Obviously Robinhood is controlled by the hedge funds because the owner decided to pretty much implode his company by halting trading for the retail market so it’s hedge fund puppet masters could get out of their shorts, the pieces of shit.

I also heard that this app which is aimed towards the retail market sold its data on the trading activities to the hedge funds ....evil

This story should be something that we can all celebrate bipartisan support.
Last edited by Finfinder on 29 Jan 2021 02:59, edited 1 time in total.
#15153548
colliric wrote:Redditors basically tried to save all their favourite retro companies from bankruptcy, save jobs and save franchisees. They even invested in Blockbuster (because the brandname has merchandising retro-value now as people get nostalgic for the 90s).

Wall Street killed it as usual.

They'd rather blame AMC for their impending bankruptcy than put the blame where it belongs. With the film studios for producing shitty SJW-targeting crap.

Grassroots investors try to save cinemas, and wall Street decides to help kill them instead.

Killing things is where the money is, @colliric. :)
#15153559
colliric wrote:Redditors basically tried to save all their favourite retro companies from bankruptcy, save jobs and save franchisees. They even invested in Blockbuster (because the brandname has merchandising retro-value now as people get nostalgic for the 90s).

Wall Street killed it as usual.

They'd rather blame AMC for their impending bankruptcy than put the blame where it belongs. With the film studios for producing shitty SJW-targeting crap.

Grassroots investors try to save cinemas, and wall Street decides to help kill them instead.


I do not understand this post at all.
#15153570
It seems there may be some political twists. Apparently, Janet Yellen was paid over $800k between October 2019 and October 2020 by Citadel, the firm that bailed out Melvin capital and may have used its influence to force Robinhood to prevent its users from buying or short selling GameStop stock.

The GameStop Connection to the Biden Team and Janet Yellen, Jen Psaki Spins Like Anything When Asked
According to the Wall Street Journal, Melvin Capital was propped up by Citadel and another firm, 72Point with a $2.75 billion infusion after it lost 30% of its capital.

Citadel also pays Robinhood for their trade data.

Hrmm....

According to the Daily Caller, Yellen was paid $810,000 to speak at three events for Citadel in one year between October 2019 and October 2020. She was given $292,500 for a speech on Oct. 17, 2019, $180,000 for another on Dec. 3, 2019, and $337,500 to speak at a series of webinars held from Oct. 9-27, 2020. Citadel spends thousands lobbying Congress and the Treasury Department every year since 2008.

Well, well, well... Not even two weeks in office, and they are already manipulating the markets to save billionaires shorting main street America. :hmm:
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