The GameStop drama and what does it mean for Bitcoin

[Mauser]

That is the most unbelievable part. Now there is a clash of interest between those who were mocked bad by a whole reddit community (Robinohood), those who have been basically drained (hedge funds) and those who made a quick buck (WSB).
To me the most important thing of this whole story is that this showed how much power crowdsourced masses have. Using this huge power for the good or the bad can have huge consequences in the real life. How ready are we for that?

I agree with you that a large crowd can have a big impact. The hole short squeeze looks very similar to the Porsche, VW take over where short sellers had to cover their positions quickly. But eventually the prices got back to normal. The next weeks will show how the gamestop drama is going to end. Will we see prices drop down to the old levels again and who is going to get hurt the most? The hedge funds said they already closed their positions, but who knows if its true. Maybe they still are losing money.

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[FIFA worldcup]

[tyz]

That is the most unbelievable part. Now there is a clash of interest between those who were mocked bad by a whole reddit community (Robinohood), those who have been basically drained (hedge funds) and those who made a quick buck (WSB).
To me the most important thing of this whole story is that this showed how much power crowdsourced masses have. Using this huge power for the good or the bad can have huge consequences in the real life. How ready are we for that?

I agree with you that a large crowd can have a big impact. The hole short squeeze looks very similar to the Porsche, VW take over where short sellers had to cover their positions quickly. But eventually the prices got back to normal. The next weeks will show how the gamestop drama is going to end. Will we see prices drop down to the old levels again and who is going to get hurt the most? The hedge funds said they already closed their positions, but who knows if its true. Maybe they still are losing money.

The game can go on for a while, but in the end GameStop's shares will tend to zero as the company is basically broke. I just don't hope the hedge funds will lose so much that some of them, and perhaps banks too, will need government support. Then tax money would be due for the whole action.

[freedomno1]

The game can go on for a while, but in the end GameStop's shares will tend to zero as the company is basically broke. I just don't hope the hedge funds will lose so much that some of them, and perhaps banks too, will need government support. Then tax money would be due for the whole action.

The real question for me is while Gamestop tends to zero how much capital is stuck in short covers pushing the stock price up after this all ends.

If there is one winner out of this that is AMC they were able to get their debt paid and build up a bit of a nest egg to survive Covid so Reddit bought the movie theatre at least a couple of months and possibly more depending on how much they can raise from new stocks.
https://www.bnnbloomberg.ca/amc-says-bankruptcy-off-the-table-after-raising-equity-loans-1.1553492

[fullhdpixel]

but truth be told, people did this out of spite against the greedy bankers and have succeeded

Did they though? I didn't see Melvin Capital's bankruptcy in the news. Did they hang themselves yet? As far as I know they are still fighting because they know eventually WSB will run out of fuel and the stock will go to zero.

Good news is WSB is now after Silver as I read it from various sources. Not gold but close enough. They see SLV is much easier to push unlike Gold... Makes sense.

This is a whole different game if they are doing it for real. There is absolutely nothing common in SLV and GME. In fact I ordered my first ever physical silver bar today.   I read it here and there the estimated numbers for silver prices change between $200/ounce and $1000. Possible you think?

They did succeeded in the sense that the losses Melvin had was bigger than the whole market capital of Melvin, right now they are not really fighting against them anymore specifically but basically against all the other shorts.

Melvin had to close their position because it peaked at 70+ billion dollars, Melvin doesn't have that kind of power, of course people backing Melvin did and they saved them and paid it but at the end if Melvin was gone, and there are still shorts, that means we are talking about more people in the short place that took Melvins' place betting against WSB to lose. That is what they are fighting against, and obviously it will not continue forever, I do not see millions of people holding GME for 10+ years, that is not going to happen, but at least they have managed to make wall street guys lose billions of dollars and that is good enough for them.

[stompix]

Its data also showed that estimated losses from shorting GameStop at $1.03 billion year-to-date, while those shorting Bed, Bath & Beyond were looking at a $600 million loss.

1.03 billions, so far.

Hmm...

Nine investors, including large fund-running institutions like Fidelity's FMR and BlackRock (BLK) plus some well-positioned individuals like Chewy (CHWY) co-founder Ryan Cohen watched the value of their GameStop holdings soar more than $1 billion apiece just this year.
All told, these nine investors made a total of roughly $16 billion on their GameStop stakes, just in January. That means they grabbed roughly three-quarters of the $20.4 billion gain in the company's market value this year.

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.

Melvin had to close their position because it peaked at 70+ billion dollars, Melvin doesn't have that kind of power,
<>but at least they have managed to make wall street guys lose billions of dollars and that is good enough for them.

Melvin lost about 4.5 billion during the entire month, it has already received 2.5 billion in new capital from two other investment funds.
Ant the "heroes" have also managed to make some Wallstreet guys earn four times as much as all the others lost, a bit counterproductive if you want to bring the "system" down, isn't it?

[fillippone]

As for Central Banks, WSB is interfering with free markets, hence picking winners and losers in Wall Street.

Same goes with Silver. Do you know which hedge fund is very long silver?
Pick one...

Answer: Citadel. Exactely. The very same Citadel that owns RobinHood and was forced to bail out Melvin capital.
Oh, the irony.

[mindrust]

but truth be told, people did this out of spite against the greedy bankers and have succeeded

Did they though? I didn't see Melvin Capital's bankruptcy in the news. Did they hang themselves yet? As far as I know they are still fighting because they know eventually WSB will run out of fuel and the stock will go to zero.

They did succeeded in the sense that the losses Melvin had was bigger than the whole market capital of Melvin, right now they are not really fighting against them anymore specifically but basically against all the other shorts.

Melvin had to close their position because it peaked at 70+ billion dollars, Melvin doesn't have that kind of power, of course people backing Melvin did and they saved them and paid it but at the end if Melvin was gone, and there are still shorts, that means we are talking about more people in the short place that took Melvins' place betting against WSB to lose. That is what they are fighting against, and obviously it will not continue forever, I do not see millions of people holding GME for 10+ years, that is not going to happen, but at least they have managed to make wall street guys lose billions of dollars and that is good enough for them.

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  

As for Central Banks, WSB is interfering with free markets, hence picking winners and losers in Wall Street.

Same goes with Silver. Do you know which hedge fund is very long silver?
Pick one...

Answer: Citadel. Exactely. The very same Citadel that owns RobinHood and was forced to bail out Melvin capital.
Oh, the irony.

Is there a source for that? I thought all big funds/banks were shorting PM's. Lately it became too hard to separate fake information from right. I don't want to read another article tomorrow that says Citadel was actually shorting PM's.  

And I learned the daddy of Melvin too thanks to you. So the daddy is Citadel who is also the daddy of Robin. Who is the wifey?

[freedomno1]

This is fun, the algos are now going to scrape reddit for price movements

GameStop short squeeze fuels new stock-market services tracking Reddit messages

A group of data providers are wagering that financial markets will never be the same again and that deep-pocketed investors will shell out big bucks to monitor discussions on message boards like Reddit’s r/wallstreetbets and social-media platforms like Discord for mentions of publicly traded companies.

Meanwhile, Andrew Left, founder of Citron Research, last Friday, a famed short seller, altered his strategy, saying that his firm would no longer be publishing short selling reports. Left was seen drawing the ire of individual investors for his negative views on GameStop — a bricks-and-mortar retailer that he says was worth only around $20 in the midst of a growing shift of digital videogame sales.

“Young people want to buy stocks. That’s the zeitgeist,” said Left about his decision to exit the business of identifying companies that he thinks are overvalued and announcing publicly that he ‘s betting its shares will sink.

“They don’t want to short stocks, so I’m going to help them buy stocks,” Left said of his focus on long investing.


https://www.marketwatch.com/story/gamestop-short-squeeze-fuels-new-stock-market-services-tracking-reddit-messages-11612203740?mod=home-page


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As an aside is anyone just damn impressed how much lying and BS has been coming out of the Mainstream media regarding gamestop

[HeRetiK]

Nine investors, including large fund-running institutions like Fidelity's FMR and BlackRock (BLK) plus some well-positioned individuals like Chewy (CHWY) co-founder Ryan Cohen watched the value of their GameStop holdings soar more than $1 billion apiece just this year.
All told, these nine investors made a total of roughly $16 billion on their GameStop stakes, just in January. That means they grabbed roughly three-quarters of the $20.4 billion gain in the company's market value this year.

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.

Melvin had to close their position because it peaked at 70+ billion dollars, Melvin doesn't have that kind of power,
<>but at least they have managed to make wall street guys lose billions of dollars and that is good enough for them.

Melvin lost about 4.5 billion during the entire month, it has already received 2.5 billion in new capital from two other investment funds.
Ant the "heroes" have also managed to make some Wallstreet guys earn four times as much as all the others lost, a bit counterproductive if you want to bring the "system" down, isn't it?

The one is realized losses, the other unrealized gains. Big difference as anyone who is in crypto should know

Keep in mind that Ryan Cohen becoming a major shareholder, then in early January becoming one of the board members of GameStop were the catalyst for this rally to begin with; so him being a big winner of the current situation comes to no surprise to anyone.

It's really funny though how this whole situation has escalated into a "stick it to the man" kinda thing. It all started as relatively simple value investing, in a forum full of options and futures plays, with the short squeeze just being a kind of funny "what if..." situation. Then again, accidentally turning into "heroes" is probably one of the most WSB things ever.

This is fun, the algos are now going to scrape reddit for price movements

GameStop short squeeze fuels new stock-market services tracking Reddit messages

A group of data providers are wagering that financial markets will never be the same again and that deep-pocketed investors will shell out big bucks to monitor discussions on message boards like Reddit’s r/wallstreetbets and social-media platforms like Discord for mentions of publicly traded companies.

Unfortunately not only monitor, but also manipulate, where possible. The amount of bots on this sub has become immeasureable. Where the bots failed to steer the conversation (e.g. silver), they just had large media outlets lie through their teeth. Generally the amount of pumpers jumping on the bandwagon is rather concerning (e.g. DOGE and now XRP).

Meanwhile, Andrew Left, founder of Citron Research, last Friday, a famed short seller, altered his strategy, saying that his firm would no longer be publishing short selling reports. Left was seen drawing the ire of individual investors for his negative views on GameStop — a bricks-and-mortar retailer that he says was worth only around $20 in the midst of a growing shift of digital videogame sales.

Until now I haven't been following the sub regularly except for whenever some crazy plays happened (guh!), however from what I've gathered Left has been drawing the ire of r/wallstreetbets for quite a while now. It seems like GameStop was the last straw and apparently the one that broke the camel's back. Either way, I wouldn't trust anyone who apparently has become so out of touch with the market with either long or shorts.

[fillippone]

but truth be told, people did this out of spite against the greedy bankers and have succeeded

Did they though? I didn't see Melvin Capital's bankruptcy in the news. Did they hang themselves yet? As far as I know they are still fighting because they know eventually WSB will run out of fuel and the stock will go to zero.

They did succeeded in the sense that the losses Melvin had was bigger than the whole market capital of Melvin, right now they are not really fighting against them anymore specifically but basically against all the other shorts.

Melvin had to close their position because it peaked at 70+ billion dollars, Melvin doesn't have that kind of power, of course people backing Melvin did and they saved them and paid it but at the end if Melvin was gone, and there are still shorts, that means we are talking about more people in the short place that took Melvins' place betting against WSB to lose. That is what they are fighting against, and obviously it will not continue forever, I do not see millions of people holding GME for 10+ years, that is not going to happen, but at least they have managed to make wall street guys lose billions of dollars and that is good enough for them.

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  

Honestly, 70+ billions seems to much to me, what about 2 billions?

Citadel, Point72 Back Melvin With $2.75 Billion After Losses

Hedge fund titans Ken Griffin and Steve Cohen boosted Gabe Plotkin’s Melvin Capital, injecting a total of $2.75 billion into the firm after it lost about 30% this year.

Citadel funds and firm partners will invest $2 billion, while Point72 Asset Management’s investment will be $750 million, the firms said Monday. In return, the investors will get a non-controlling revenue share in the six-year-old hedge fund. Melvin Capital may receive an additional $1 billion infusion from other investors on Feb. 1, according to a person familiar with the plans.

Do you know which hedge fund is very long silver?
Pick one...

Answer: Citadel.
<...>

Is there a source for that?

<...>

Plenty:

Citadel Silver Holding Exposes Rifts in WallStreetBets Army

The precious metal has become a popular buying target for retail investors keen to inflict losses on hedge funds, after posts on WallStreetBets claimed the market was ripe for a short squeeze. Yet some members of the Reddit forum have responded with pleas to avoid the trade, saying Citadel stands to benefit as a major holder of the largest silver exchange-traded fund.

“CITADEL IS THE 5TH LARGEST OWNER OF SLV,” one WallStreetBets user wrote on Sunday, referring to the iShares trust’s ticker symbol. “IT’S IMPERATIVE WE DO NOT ‘SQUEEZE’ IT.”

Actually some one suggested the redditors pushing for the silver squeeze were a little bit, “odd” to the group not to think they were actually Citadel minions undercover.

[magneto]

It's going to add some short term volatility to BTC trading, that's for sure.

But other than that, what people in WSB are doing has nothing to do with one asset in particular. The influencers are all trying to push their own agendas and using Wall St. vs Main St. as a front to orchestrate pump and dumps one way or another.

It's just that cryptos and bitcoin are going to be very easy targets as they are so accessible to retail investors. Again, for long term holders, this news means absolutely nothing.

[Prettyjing3]

Yes, so far, GME’s stock has fallen by more than 30%, which is almost devastating for a company, compared with Dogecoin, which has soared 10 times the day before yesterday, this round of confrontation in the crypto market. It has the upper hand.

[vapourminer]

It's going to add some short term volatility to BTC trading, that's for sure.

But other than that, what people in WSB are doing has nothing to do with one asset in particular. The influencers are all trying to push their own agendas and using Wall St. vs Main St. as a front to orchestrate pump and dumps one way or another.

It's just that cryptos and bitcoin are going to be very easy targets as they are so accessible to retail investors. Again, for long term holders, this news means absolutely nothing.

and just like some noobs to r/wallstreetbets that listen to the bots and shills (short $SLV!!!) and will likely get rekt many noobs to the crypto world will be led astray to alts instead of btc.

[charlesmichel1]

I don't think there is any correlation between Gamestop case and the future of Bitcoin. The first crypto is like the protest against the centralized financial system too, but it doesn't need to be pumped this way.

[fillippone]

<...>
Actually some one suggested the resistors suggesting the silver squeeze were a little bit, “odd” to the group not to think they were actually Citadel minions undercover.

Actually, if I were in Citadel, I would buy some AI writing algorithm, and I would swarm r/WallStreetBets with bots trying to convince others to squeeze one of the assets I am long in.

Future fantasy?
I guess not so much:
AI writing messages on Bitcointalk.org

[stompix]

The one is realized losses, the other unrealized gains. Big difference as anyone who is in crypto should know

And you have the data on all those share movements up to date? Or.....

But at this point I know how this discussion will never end, you simply love the idea behind this, even if thousands of little guys that stood up to the evil Wallstreet will lose all their money in this scheme it will still be a good thing.
Just how BTC was supposed to put banks in their place on all fours and begging for mercy, people are cheering for every bit of news when a guy sends BTC to a different country without the banks while forgetting the millions they make every day with people wiring money to buy and sell coins. But on the surface, it's pretty comforting to know you have an anti tiger rock at your disposal.

It's really funny though how this whole situation has escalated into a "stick it to the man" kinda thing.

Wonder how it started...oh wait!

What we are seeing is payback for 2008.

Who said that? 

Actually, if I were in Citadel, I would buy some AI writing algorithm, and I would swarm r/WallStreetBets with bots trying to convince others to squeeze one of the assets I am long in.

And from how the movement on /r would affect bitcoin and crypto we end up how the tactics used for ages in the altcoin board are going to ruin every damn Reddit sub.  The irony....
Rather than thinking of bots I would be more concerned with the real users, you never know on whose payroll they are, just like the guys doing "honest" reviews on yt. What I've learned and served me pretty good till now is to stay away from crowds, when the herd starts moving if you're not in the front row you might end up in a ravine with all of them.

[Princejebs]

Yes, so far, GME’s stock has fallen by more than 30%, which is almost devastating for a company, compared with Dogecoin, which has soared 10 times the day before yesterday, this round of confrontation in the crypto market. It has the upper hand.

Some doge crypto Lord are so happy that they have turn blind to see what bitcoin will do in the long run.
I was having a heated argument with a friend who made almost %1500 in doge within a year ( from last year to this year). This dude told me he sold at peak and bought back again and hoping for more gains and always watching Elon Musk twitter handle.
It a pity how Wall Street now play with cryptocurrency. Xrp just did same thing.

[HeRetiK]

The one is realized losses, the other unrealized gains. Big difference as anyone who is in crypto should know

And you have the data on all those share movements up to date? Or.....

I'm only referring to the quote you posted:

Nine investors, including large fund-running institutions like Fidelity's FMR and BlackRock (BLK) plus some well-positioned individuals like Chewy (CHWY) co-founder Ryan Cohen watched the value of their GameStop holdings soar more than $1 billion apiece just this year.
All told, these nine investors made a total of roughly $16 billion on their GameStop stakes, just in January. That means they grabbed roughly three-quarters of the $20.4 billion gain in the company's market value this year.

It literally refers to their GameStop holdings. IIRC due to insider-trading regulations Ryan Cohen is not even able to sell his holdings right now until after GameStop's earnings report in (presumably) March. All in all 32% of all outstanding shares are currently restricted:
https://finance.yahoo.com/quote/GME/key-statistics/

While the other institutional investors are a black box until after their holdings report 2.5 months from now, that's a lot of gains that can not be realized until after restrictions are lifted.

It's really funny though how this whole situation has escalated into a "stick it to the man" kinda thing.

Wonder how it started...oh wait!

What we are seeing is payback for 2008.

Who said that? 

I did, at the point where it escalated into a "stick it to the man" kinda thing

As I posted above, it all started as value investing, with one guy getting invested mid 2019 in what he believed to be an undervalued company. He was mostly dismissed by the community until Ryan Cohen entered in 2020. It then grew further when Ryan Cohen became a board member early January. It escalated when GameStop got even more targeted by hedge funds and the short squeeze became -- arguably -- more than just a meme.

It's all part of the public record. You probably could even correlate GME's stock price with WSB posts and the events described above.

[Broly46]

This debacle just further reinforce the need of isolated market place, bitcoin stand on the sweet spot between retail vs big fund in the money market which is very fraudulent and damaging you can see the price of GameStop whether it’s going up or going down, both retail and big fund is getting screwed financially, there is nothing good come out of this debacle, this stupidity has been going on to the point fed has to print so much money to rescue the money market from this debacle QE would not stop since it interception, and printing money is non stop sending out cash everyday, how game stop just sum up everything in a big picture.