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  1. #1
    Guru Crypto Crude's Avatar
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    Default Game Stop incredible story

    What happened basically is US publically listed company Gamestop is a very average performing company... Wallstreetbets a retail community saw hedge funds were shorting the company and grouped together to bid the stock up so much it created a short squeeze forcing hedge funds to buy back stock at much higher prices sending stock prices even higher...

    This is huge news for retail investors and will change the landscape for wallstreet forever...
    The little man fights back this is truely a phenomenal story..

    https://www.theguardian.com/business...il-wall-street

    cc

  2. #2
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    Default

    heh, now watch "them" change the rules

  3. #3
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    My understanding is the shorts were 140% of the shares on issue, which means (in theory) some shorters could never close their position. When that is combined with an increasing number of members of the online community buying and refusing to sell, it creates an amplified squeeze as shorters seek (or are forced) to close their positions. I'm not convinced we have seen the top yet for GME given various participants with a lot to lose are interfering with the ability of retail investors to get amongst it. Once these restrictions lift overnight we may see more volatility. It's basically a game of chicken at the moment.

    The community is also targeting other stocks such as AMC, BB, BBBY and NOK (NOK - really? or is that a pump and dump?). Other potential candidates saw a spike Wednesday due to IMO shorters closing out their positions to avoid issues with other highly shorted shares, e.g. LGND comes to mind.

  4. #4
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    Default

    My understanding is the shorts were 140% of the shares on issue,
    So, it's no longer necessary to borrow shares in order to short a company?

  5. #5
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    Quote Originally Posted by macduffy View Post
    So, it's no longer necessary to borrow shares in order to short a company?
    Could have created the short via an option , hence the over 100 % , which I thought was banned after 1930's ....
    Hedge funds have themselves to blame for lack of risk control on the position they took .....

  6. #6
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    Quote Originally Posted by Ferg View Post
    My understanding is the shorts were 140% of the shares on issue, which means (in theory) some shorters could never close their position. When that is combined with an increasing number of members of the online community buying and refusing to sell, it creates an amplified squeeze as shorters seek (or are forced) to close their positions. I'm not convinced we have seen the top yet for GME given various participants with a lot to lose are interfering with the ability of retail investors to get amongst it. Once these restrictions lift overnight we may see more volatility. It's basically a game of chicken at the moment.

    The community is also targeting other stocks such as AMC, BB, BBBY and NOK (NOK - really? or is that a pump and dump?). Other potential candidates saw a spike Wednesday due to IMO shorters closing out their positions to avoid issues with other highly shorted shares, e.g. LGND comes to mind.
    Yeah im not too sure why BB or NOK is on there, their % shorted isnt even that high compared to amc, bbby, gme

  7. #7
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    Default

    Quote Originally Posted by macduffy View Post
    So, it's no longer necessary to borrow shares in order to short a company?
    Legally it is, but since when has that mattered? The major short, Melvin Capital, enlisted at one point the assistance of Citadel who as a Market Maker can open naked short positions, but even then they should only be doing that to essentially supply liquidity to an illiquid stock and ensure proper market operation or whatever. There's clearly illegal behaviour going on in this one, and it's not on the part of a bunch of retail investors basically gambling it all on black.

  8. #8
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    Is there any easy way to short GME (and other US stocks for that matter) from NZ? Surely this is now a clear short opportunity.

  9. #9
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    Quote Originally Posted by James108 View Post
    Is there any easy way to short GME (and other US stocks for that matter) from NZ? Surely this is now a clear short opportunity.
    That’s what the hedge fund thought .These closed at $198.00 at the end of their session yesterday . Currently over $ 400 in after market or premarket whatever it is . That’s a whole world of pain to a short ..... Good luck !

  10. #10
    Guru Crypto Crude's Avatar
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    Default

    WHAT HAPPENED !!!...
    ROBIN HOOD AND OTHER 3RD PARTIES SUSPENDED
    BUYING OF stock so you could only sell and not buy so prices could only fall so that these hedge funds could close out their short positions...
    !!!... this is huge huge stuff going on ...
    This is gona boom cryptocurrency and it already is...
    These 3rd parties cant be trusted...

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