The GameStop drama and what does it mean for Bitcoin

[fullhdpixel]

Are you telling me Melvin's friend loaned Melvin 70+ billion? And all this time I thought friends are assholes. Must be nice to have that kind of friends. So you are telling me that the game is now WSB against the daddy of Melvin which is impossible to win. Holy Crap. That's big if true.

Btw that Silver pump stuff was a distraction from the Fake News Network it looks like. WSB on their sub says that let alone pumping silver, they actually hate it  

Well both yes and no. Yes, Melvin is a hedge fund which means it is built by rich people and funded by rich people there is no shock in there, you can go check melvin and their investors and you will realize that most of them are even bigger hedge funds and some of the mare just rich folks, that is how wall street works, people who are rich help keep each other rich basically, and having multiple companies who do what you want them to do would allow you to avoid a lot of SEC regulations as well.

However it is not scary, because 70+ billion dollars or 700+ billion dollars nothing matters in this situation, obviously in any normal time it would matter but right now more than 100% of the stock was shorted, which means melvin promised 120 items but there was only 100 items, so he needs to buy those 100 items, pay it back, than after he paid it back he need to go to market and find 20 more on top of it on the price he helped increasing and get 20 more and pay it. So, it is "technically" impossible for rich to win, because we hold it.

[1714676931]

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[1714676931]

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[South Park]

If you are living under the rock, the GameStop (GME) stock trading has been making quite the news recently, because retail investors organized on reddit managed to pump this stock and made some hedge funds suffer tremendous losses on their short positions, to a point when trading had to be halted, and similar events occured with other stocks.

Some people from crypto industry are already making comments how this can be good for crypto, because it's a revolt against old-school centralized finance.

I personally wouldn't hurry with conclusions, as this drama isn't over and we're yet to see any actions from SEC, who already said that they are monitoring the situation.

What do you think?

I think those people are playing with fire, buying a stock in that way with the specific purpose to pump its price is illegal and it has been illegal for a long time, those that were the organizers of all of this should prepare themselves as the governments and those that are powerful are not going to let this slide as it was a clear case of people trying to challenge their power, pump and dumps are possible here because of the anonymity brought by the Internet but in the stock market this is impossible and I think the leaders of all of this could be arrested during the next months.

[hatshepsut93]

So...did "Wallstreet" lose money or made money with this cause the numbers are starting to tell a different story!
I need to make some popcorn stocks cause when this will finally end and we draw the line we're going to see some pretty weird results.

Wallstreet is not a singular entity, unlike some people might think, like those who like to believe in conspiracy theories, so it's quite likely that other companies that can be considered "Wallstreet" are participating in this short squeeze on the side of WSB. It's even unlikely that retail investors alone have achieved such a big price pump, they simply don't have as much money. Those reddit posters who show their screenshots of tens and hundreds of thousands of dollars invested don't represent the average capability of a WSB user.

[Twentyonepaylots]

Things become illegal when the rich are threatened by it. So they're doing their best to indict people behind this scheme. Which I honestly am against since the rich investors like Warren Buffet inspired us in the past to do investing ourselves if we want to be rich. Now, the question is how long will this spread out, I suspect it to carry on for a very long time, GME will be the memestock of the stock market.

[Gyfts]

Oh no, Gamestop down over 75 percent from its peak. Who could have predicted this? No one.

One thing wallstreetbets seemed to not understand is that after things subside and GME comes crashing down, the institutional investors were already out. It's normal everyday people that dabbled in the market who got bit hard. You're no longer supporting the small guys, you're just using them to keep the stock solvent, almost like a ponzi.

It's rather sad the amount of people who lost their money.

[HeRetiK]

Oh no, Gamestop down over 75 percent from its peak. Who could have predicted this? No one.

One thing wallstreetbets seemed to not understand is that after things subside and GME comes crashing down, the institutional investors were already out. It's normal everyday people that dabbled in the market who got bit hard. You're no longer supporting the small guys, you're just using them to keep the stock solvent, almost like a ponzi.

It's rather sad the amount of people who lost their money.

It really does seem like the attempt at a short squeeze has failed. I do wonder what would have happened hadn't Robinhood pulled the plug on Thursday though. And especially how shorts managed to reduce short interest over the weekend from ~122% on Friday to ~51% on Monday (according to S3 analysts), ie. whether (a) false numbers were reported, (b) shorts haven't been covered, just "restructured" or (c) OTC deals took place over the weekend.

I still believe WSB would have had a fighting chance if not for all the dirty punches, alas it will now likely either fizzle out or turn into a pump and dump attempt. Either way, that was over faster than I expected. I guess I'm too used to the honey badger that is Bitcoin.

I'll continue keeping an eye on the affair though. Last week was quite a ride, let's see if there's still any plot twists coming up.

[Gyfts]

Oh no, Gamestop down over 75 percent from its peak. Who could have predicted this? No one.

One thing wallstreetbets seemed to not understand is that after things subside and GME comes crashing down, the institutional investors were already out. It's normal everyday people that dabbled in the market who got bit hard. You're no longer supporting the small guys, you're just using them to keep the stock solvent, almost like a ponzi.

It's rather sad the amount of people who lost their money.

It really does seem like the attempt at a short squeeze has failed. I do wonder what would have happened hadn't Robinhood pulled the plug on Thursday though. And especially how shorts managed to reduce short interest over the weekend from ~122% on Friday to ~51% on Monday (according to S3 analysts), ie. whether (a) false numbers were reported, (b) shorts haven't been covered, just "restructured" or (c) OTC deals took place over the weekend.

I still believe WSB would have had a fighting chance if not for all the dirty punches, alas it will now likely either fizzle out or turn into a pump and dump attempt. Either way, that was over faster than I expected. I guess I'm too used to the honey badger that is Bitcoin.

GME was going higher if Robinhood didn't pull strings but still, no educated investor should invest in a hype train and WSB were being incredibly dishonest. Too much propaganda on the front page telling people to hold to fuck over the hedge funds when it was just a bunch of people that bought in early or bought in late trying to save their bottom line.

The hedge funds have tens of billions of dollars a button away from being loaded into their accounts to manipulate the market so even though they shorted, their losses were never going to be too big because they'll get bailed out. The mets owner iirc gave 3 billion to the hedge fund behind the short bets. That money went up in smoke but point being, they had plenty more to borrow.

[mindrust]

The hedge funds have tens of billions of dollars a button away from being loaded into their accounts to manipulate the market so even though they shorted, their losses were never going to be too big because they'll get bailed out. The mets owner iirc gave 3 billion to the hedge fund behind the short bets. That money went up in smoke but point being, they had plenty more to borrow.

That's the exact reason why smol people shouldn't be touching stocks or anything a hedge fund is in. It became apparent that RH -unlike its name- wasn't taking from the rich and giving to the poor. It was the opposite. They are selling the small people's positions, their data to the big boys so the Hedgies could be on the opposite side of the smol people's bets and take their money.

The casino is rigged and (hopefully) now everybody sees it.

Even when there is a small chance of a win for the avg. Joe, they still won't let that happen because the hedge funds also own the casino.

I didn't like the idea of pumping a shitstock with 0 value but for what they accomplished, I will be forever grateful to WSB.

[fillippone]

<...>

The casino is rigged and (hopefully) now everybody sees it.

Even when there is a small chance of a win for the avg. Joe, they still won't let that happen because the hedge funds also own the casino.

I didn't like the idea of pumping a shitstock with 0 value but for what they accomplished, I will be forever grateful to WSB.

This.
Also should be noted that everyone investing in stocks should already know the game is rigged.
As bitcoiners, I think we are on a privileged position: "Don't trust, verify" is a useful mindset in these situations. 

[HeRetiK]

The hedge funds have tens of billions of dollars a button away from being loaded into their accounts to manipulate the market so even though they shorted, their losses were never going to be too big because they'll get bailed out. The mets owner iirc gave 3 billion to the hedge fund behind the short bets. That money went up in smoke but point being, they had plenty more to borrow.

That's the exact reason why smol people shouldn't be touching stocks or anything a hedge fund is in. It became apparent that RH -unlike its name- wasn't taking from the rich and giving to the poor. It was the opposite. They are selling the small people's positions, their data to the big boys so the Hedgies could be on the opposite side of the smol people's bets and take their money.

The casino is rigged and (hopefully) now everybody sees it.

Even when there is a small chance of a win for the avg. Joe, they still won't let that happen because the hedge funds also own the casino.

I didn't like the idea of pumping a shitstock with 0 value but for what they accomplished, I will be forever grateful to WSB.

I didn't quite expect the amount of shit hedgies managed to pull though.

Successfully spreading the story that WSB had won and that the short squeeze already happened was a master move. Introduce liquidity issues, push the lie that WSB has moved on from GameStop to silver for good measure. Nothing to see here, move along.

[freedomno1]

Things become illegal when the rich are threatened by it. So they're doing their best to indict people behind this scheme. Which I honestly am against since the rich investors like Warren Buffet inspired us in the past to do investing ourselves if we want to be rich. Now, the question is how long will this spread out, I suspect it to carry on for a very long time, GME will be the memestock of the stock market.

Pretty much it tends to get regulated when it breaks the riches game. Oh no the plebians found a way to participate at the table this can't be approved let us teach them a lesson with the power of our controlled media. As others have said the stock market is a rigged board a gents club for the rich with a cabal-like mentality. Where winners and losers are made and the times the biggest fail they get bailed since they are too big to fail. Well from a crypto perspective we can be more objective as it gives us a perspective and window into the heart of corruption and the ways the wealthy manipulate the media and the people to get what they want. If you control the story you control the direction and can spin the Driedel ever in your favour.

[mezzaluna]

If you are living under the rock, the GameStop (GME) stock trading has been making quite the news recently, because retail investors organized on reddit managed to pump this stock and made some hedge funds suffer tremendous losses on their short positions, to a point when trading had to be halted, and similar events occured with other stocks.

Some people from crypto industry are already making comments how this can be good for crypto, because it's a revolt against old-school centralized finance.

I personally wouldn't hurry with conclusions, as this drama isn't over and we're yet to see any actions from SEC, who already said that they are monitoring the situation.

What do you think?

Imo, I still think that there would be no relation of the current situation to the Crypto Industry since most of the traders are just focused on pumping the value of GameStop. However, its also good to see some actions from SEC to further study Cryptocurrencies and how would they use it for the benefit of someone who has knowledge about it. We are still seeing some famous people promoting Cryptocurrencies and its not just Elon Musk so we will surely see a different news that would revolve around Cryptocurrencies and not just Stock trading.

[Daltonik]

Perhaps this drama will be filmed, so according to information available to Deadline, Netflix will shoot a film about the confrontation between users of the r/WallStreetBets subreddit from Wall Street.  Netflix uses the GameStop pump story to showcase the impact of social media on society.  The company is in talks with screenwriter Mark Boal, who has worked on The Hurt Locker and Number One Target, the sources said.
The publication claims that the main role will be played by actor Noah Centineo, the interlocutors named the founders of the Gemini crypto exchange, brothers Cameron and Tyler Winklevoss as executive producers of the picture.

 

[jaberwock]

I didn't quite expect the amount of shit hedgies managed to pull though.

Successfully spreading the story that WSB had won and that the short squeeze already happened was a master move. Introduce liquidity issues, push the lie that WSB has moved on from GameStop to silver for good measure. Nothing to see here, move along.

They own literally every channel regarding finance you can imagine. From cnbc to bloomberg to tv channels to websites there are combined millions of viewers and readers they can reach because they own it themselves and that is why they were capable of changing the narrative however they want to.

The price cannot fall if the short squeeze was done, basically the only way we can be certain that short squeeze is done would be price going over 1000+ dollars because the shorters would need soooooo much money that they would have to buy the stock, sell it to show they are out, and buy again and sell again to say they are once again out because if they bought 100% of all available stocks (which is nearly impossible) they still wouldn't be fully out, they are that deep in. So, 1000+ dollars are nothing for wsb.

[mindrust]

Wasn't the price of GME at $20 or smth when this whole thing started? Right now it is ~$90 I think that's enough to bash their skulls if WSB manages to keep it at these levels. The higher the better ofc.

[HeRetiK]

I didn't quite expect the amount of shit hedgies managed to pull though.

Successfully spreading the story that WSB had won and that the short squeeze already happened was a master move. Introduce liquidity issues, push the lie that WSB has moved on from GameStop to silver for good measure. Nothing to see here, move along.

They own literally every channel regarding finance you can imagine. From cnbc to bloomberg to tv channels to websites there are combined millions of viewers and readers they can reach because they own it themselves and that is why they were capable of changing the narrative however they want to.

It's still pretty damn impressive to see a blatant misinformation machine go into action that heavily. Globally. Propagating that "the shorts have been covered" is one thing, but successfully selling that "Reddit is now going after silver", a claim that could have been disproven by just taking 5 minutes to actually look up the sub, is a wholly different beast. Now the media I follow in Europe has luckily been a bit more critical about the silver thing (ie. pointing out that Reddit users themselves are actually warning people to not go into non-physical silver) but it still seems to have been a global news story. No wonder no one is trusting the news these days anymore.

Wasn't the price of GME at $20 or smth when this whole thing started? Right now it is ~$90 I think that's enough to bash their skulls if WSB manages to keep it at these levels. The higher the better ofc.

WSB entered GME at as low as USD 5,- in 2019 / 2020, USD 20,- was the short sell target propagated by Citron Research, escalation than happened somewhere around the USD 40,- mark. The problem I see now is that Robin Hood and other "trading platforms" pulling the plug on Thursday not only took out a lot of the momentum, it also gave hedge funds more than enough time to reposition themselves. I truly believe this could have been something great, but as it stands the situation is pretty dire and more likely to turn into a pump and dump rather than into a short squeeze. And while GameStop has announced some interesting new hires today, holders don't really have a halving supply shock to look forward to like Bitcoiners.

Let's see what happens next. Would be kind of a lame story if it really ended that way, but at least it was fun while it lasted.

[Karartma1]

HeRetiK, you have a point there but the GME fiasco could have been much more than some fun. This whole series of events showed how rigged the financial world is: we've always said it was rigged but this time there is also evidence of how rigged it was. I found Musk's Clubhouse session on the topic quite revealing
https://www.youtube.com/watch?v=8-tqDt_TKtI

I think this will be remembered as a failed opportunity to expose the truth behind WS.

[wheelz1200]

If you are living under the rock, the GameStop (GME) stock trading has been making quite the news recently, because retail investors organized on reddit managed to pump this stock and made some hedge funds suffer tremendous losses on their short positions, to a point when trading had to be halted, and similar events occured with other stocks.

Some people from crypto industry are already making comments how this can be good for crypto, because it's a revolt against old-school centralized finance.

I personally wouldn't hurry with conclusions, as this drama isn't over and we're yet to see any actions from SEC, who already said that they are monitoring the situation.

What do you think?

I think this is positive for crypto not just because of the "revot" position but more because the last 2 weeks of the gme/amc etc markets they have been playing with mimic crypto markets.  Its a lot more palatable dealing with those gme spikes and drops like we see in crypto.  They might not be so scared now to dip their toes in.

[giammangiato]

If you are living under the rock, the GameStop (GME) stock trading has been making quite the news recently, because retail investors organized on reddit managed to pump this stock and made some hedge funds suffer tremendous losses on their short positions, to a point when trading had to be halted, and similar events occured with other stocks.

Some people from crypto industry are already making comments how this can be good for crypto, because it's a revolt against old-school centralized finance.

I personally wouldn't hurry with conclusions, as this drama isn't over and we're yet to see any actions from SEC, who already said that they are monitoring the situation.

What do you think?

This has shown that united we are stronger than institutions. And they have shown that what they call free market is not as they have blocked the possibility of withdrawing GameStop shares. This pump showed also how are delicate some balances!

[darewaller]

~snip~

This has shown that united we are stronger than institutions. And they have shown that what they call free market is not as they have blocked the possibility of withdrawing GameStop shares. This pump showed also how are delicate some balances!

Do not forget that this "fall" was mainly for two reasons, one of them is the fact that people with billions, tens of billions of dollars were all acting together to drop the price and wall street put all their effort into this, secondly the price was already much lower and made a 50x return even at 92 dollars a share.

Certainly having 300+ even 400+ dollars was a shocking sight to see and lost wall street a ton of money as well, that was a good period however 92 dollars is nothing, we were at under 5 bucks for a very long time and this increase is still quite stronger than anything else we have seen so far from gamestop. This just makes it much more clearer that if we want to, humans could get together and build a community of movement financially to make it work and beat wall street if we want to. Look at crypto for biggest example, people who were fed up with fiat came in here and created something huge.