S'pore Reddit User Claims Losses of ~S$81,500 Trading GameStop (NYSE: GME) on Tiger Brokers

[Old-driver]

I only know what the headline will be when this thing is over - The Game Stops. 

Edited January 31, 2021 by Old-driver

[pi3142]

 

12 hours ago, Windwaver said:

I personally find this article superb, read it when you have tons of time.

https://www.bloomberg.com/opinion/articles/2021-01-28/knowing-when-to-sell-gamestop-stock-at-the-top-is-impossible

How Will the GameStop Game Stop?
By Matt Levine

That is the entitled class take on the situation. The below view by Redditor levelit, from the "dumb money" side.

https://www.reddit.com/r/legaladvice/comments/l6y70z/robinhood_gme_wallstreetbets_etc_post_megathread/

It is a long grievance, go for the bold for the shorter.

Quote

First you have to consider that yes the 2008 crisis does have a huge impact on this. What happened in 2008 what blatantly criminal and yet no one got punished for it, and not only that but they got bailed out. They f* up, and they ended up mostly walking away just fine while the people they f* over were forced to partially pay for the bail out. They ended up paying for the disregard for risk and blatant criminality of the financial industry. There has been a long industry of the institutional financial establishment getting a free pass on everything and having the rules applied to them differently. It doesn't matter if they aren't exactly the same people, they're part of the same industry and have the same advantages.

And it's not just historical context, but recent context. These types of people benefitted while everyone else lost out over the past year due to the virus. People in congress and other financial institutions knew about it early and exited their positions while allowing everyone else to take the fall. They shorted companies like GameStop during the middle of a high financial crisis for poorer people. All the time while many of them have the nerve to say people shouldn't get $2000 from the government, while their industry gets absurd amounts of money from them.

Now outside of the background, what has happened is that these companies shorted more than 140% of GameStop's total shares. At best this is immoral and at worst illegal (depending on when they were shorted etc). Oh and not only that but they didn't just exit their position once they had already made a ton, they planned to just keep going riding it all the way down. And hedgies clearly had a huge amount riding on it, which is how Melvin Capital suffered such a huge loss. This is all terrible terrible risk management, from the people who look-down on retail investors and act as if they know what they're doing while the retail investors don't have a clue.

So retail investors noticed this and realised they could exploit the situation together. Just like the financial industry has exploited everyone else literally every second of every day on the small scale, and obliterated economies on the large scale. The hedge funds poorly managed their risk (and maybe illegally shorted it), and in a free market you absolutely should be punished by the market for doing that if the market decides to. If I put my life savings into bitcoin and I lost everything would anyone have sympathy for me? No of course not, and unless I was purposely mislead through misrepresentation, no one should. And misrepresentation isn't even an argument for them, as they're supposedly the super clever establishment.

Up to this point it was mostly still just people happy that the establishment would have to actually take responsibility for their actions for a change, that the little guy was getting one over on them by exploiting their mistakes. But then the mainstream media started pushing all sorts of bulls**t narratives, hedge fund managers and similar people started talking all bulls**t about how "those people are sat at home getting their government checks and buying stocks, and the narrative that rich people should pay their fair share is bulls**t", that people should be blocked from talking about stocks online, etc. That these people are manipulating the market and even that they're "hacking" it. That this will destroy the whole economy so the White House/SEC needs to step in, that WSB is an alt-right racist place trying to manipulate the economy, etc. Or that the people they're really hurting are little guys with pensions.

So as soon as something bad happens to them they go on the offensive. WSB even claims they had a sudden influx of shills lying about things. It's supposedly a free market, yet when it has a negative impact on the institutions they try and discredit then and get the government to help them.

So all of this ironically lead to a frenzy that drew even more attention to it. Then places like Robinhood started preventing people from buying but still allowed selling, while at the same time claiming they are helping retail investors, ignoring the fact that it appears as though they're purposely trying to cause the price to drop. Then they act like they let it go back to normal, but they really added buy limits, started cancelling peoples orders, etc. And it appears as though many people with partial shares were even forced to sell, and some claim that they were forced to sell actual shares "out of their own best interest".

It's bulls**t, it has really shown that the rules don't apply equally, and that they get to f* about with as much risk as they want and get bailed out, or think they should. When they're in trouble they change the rules, when the little guy is in trouble it's "just how a free market works bro, you're too unsophisticated to understand". It's very easy to see why everyone is happy that they're suffering losses. Ted Cruz even retweeted AOC, and there has been huge bipartisan support from this, because everyone is fed up.

People want them to get hurt because they made mistakes, and as soon as that happens they change the rules and beg the state to intervene.

Edited January 31, 2021 by pi3142

[Wt_know]

when retail investors make money .... "how dare you" beat the big guy

when hedge funds make money ... "it's for your good" because they are working hard for pension fund ... bla bla bla

Edited January 31, 2021 by Wt_know

[Jamesc]

GME US$ 473

[Jamesc]

People still don't understand this situation.

Imagine there is only 1 million apples.

A greedy broker decides to sell 1.4 million apples and take money first.

Now he has to find 1.4 million apples to deliver.

The farmers know he sold 140% more apples than exist.

So the farmers not stupid and hold the apples so the price goes up.

No matter how high the price goes up the broker CANNOT get 1.4 million apple.

Farmers = Reddit users (SMART)

Broker =  Screwed (STUPID and GREEDY)

[Lethalstrike]

The way I see it, small time investors beat the hedge funds at their own game for once. 

Caught with the pants down, beg, steal or borrow to pay up and stomach the loss. Fair game, it is what it is. 

Don't have to go on the rhetorics about morals, legality etc because its greed at play here, except the hedge funds are not used to getting their noses bloodied in the most unexpected situation. 

[Jamesc]

15 minutes ago, Lethalstrike said:

The way I see it, small time investors beat the hedge funds at their own game for once. 

Caught with the pants down, beg, steal or borrow to pay up and stomach the loss. Fair game, it is what it is. 

Don't have to go on the rhetorics about morals, legality etc because its greed at play here, except the hedge funds are not used to getting their noses bloodied in the most unexpected situation. 

Exactly right.

The people that go on about morals, legality etc

are the Hedge Funds that lost money.

When people lose their homes and Hedge Funds make money

they never complain about morals, legality etc

Funny isn't it.

[Lethalstrike]

5 minutes ago, Jamesc said:

Exactly right.

The people that go on about morals, legality etc

are the Hedge Funds that lost money.

When people lose their homes and Hedge Funds make money

they never complain about morals, legality etc

Funny isn't it.

 There's also clear cut collusion with the brokerages, as there are vested interests in each other from both sides (Citadel & Robinhood).

Yes, with abnormal trading activity it's understandable to call for a trade halt. Restricting retail investors to buy and yet only allowing them to sell to bring down the prices, this clearly isn't a trade halt. U die your business, but if I die I must make sure its everyone's business.

[Jamesc]

1 hour ago, Lethalstrike said:

 There's also clear cut collusion with the brokerages, as there are vested interests in each other from both sides (Citadel & Robinhood).

Yes, with abnormal trading activity it's understandable to call for a trade halt. Restricting retail investors to buy and yet only allowing them to sell to bring down the prices, this clearly isn't a trade halt. U die your business, but if I die I must make sure its everyone's business.

Yes Robinhood not supposed to steal from the poor and give to the rich

and Citadel supposed to protect the weak from the marauding raiders that plunder and steal.

So ironic.

Edited January 31, 2021 by Jamesc

[pi3142]

Plane Fly's over RobinHood HQ in San Francisco

 

Times Square GME Billboard By WSB User

https://nypost.com/2021/01/30/redditors-buy-times-square-billboard-as-gamestop-stock-saga-rages/

https://www.dailymail.co.uk/news/article-9205869/Wolves-Reddit-mock-humbled-hedge-funds-giant-billboard-NYC-airplane-banner.html

 

Edited January 31, 2021 by pi3142

[Jrage]

The current short position on the stock is 61M shares . (31 Jan ) 

https://shortsqueeze.com//shortinterest/stock/term2.php?s=GME

And the float in the market is 46.89M

https://sg.finance.yahoo.com/quote/GME/key-statistics?p=GME

So even if all retail buyers (yes, even those that sell in panic)  sells the share once. The shorty will continue to be squeezed for the days to come. Because the shorty took a way too big position. 

Also , not only the shorty are forced to buy the shares now. The market-makers which have to remain in market neutral position, will need to hold on to physical stocks as part of the requirement. ( one of the reason why some brokerage said they halt trading, because the market-maker they worked with need to get their stock) .

Correct me if i am wrong.  

Edited January 31, 2021 by Jrage

[Jman888]

maybe the stock exchange authority see the whole saga too dramatic and declare 通通不算,  all position reverse?

 

[Wt_know]

43 minutes ago, Jman888 said:

maybe the stock exchange authority see the whole saga too dramatic and declare 通通不算,  all position reverse?

 

i suspect most likely halt GME and clear all short positions at last closing price. 

counters that is not “overshot” should not be affected since shorting and covering has been done for decades ... it’s a free market

after settle GME, somone gonna get hurt real bad  

Edited January 31, 2021 by Wt_know

[Wt_know]

 

[Jrage]

How to halt the trading and clear the shorts at the same time ?

You need someone to be selling , then buy to cover your shorts... there is just not enough stock in the mkt to cover the 140% shorts .. Even if all of WSB decide to cash out.

Personally, i think the hedge will take a deeper short position to make people that joined in the buying and is not aware of the fundamentals of this squeeze.  to drive the price down before they snap up to cover.  ( they are forced to cover, there is no choice)

i think many that joined late in the game are still not aware how squeezed they are. Also i wont be surprised if institutes are taking the opposite position to shot the shorty because it almost a sure bet. Also retail investors that take the other side , waiting for SEC bailout. 

Market-makers will leave the war first.. i believe they stopped all options trading.

 

Edited January 31, 2021 by Jrage

[Wt_know]

11 minutes ago, Jrage said:

How to halt the trading and clear the shorts at the same time ?

You need someone to be selling , then buy to cover your shorts... there is just not enough stock in the mkt to cover the 140% over purchase .. Even if all of WSB decide to cash out.

Personally, i think the hedge will take a deeper short position to make people that joined in the buying and is not aware of the fundamentals of this squeeze.  to drive the price down before they snap up to cover.  ( they are forced to cover, there is no choice)

i think many that joined late in the game are still not aware how squeezed they are. Also i wont be surprised if institutes are taking the opposite position to shot the shorty because it almost a sure bet. Also retail investors that take the other side , waiting for SEC bailout. 

agree. without trading (buy and sell) how to cover the short . my meaning of "halt" is force sell, force buy ... could regulator step in?

ok, there is 61M short and 46M shares float ... how could the hedge fund cover all the short?

Edited January 31, 2021 by Wt_know

[Jrage]

that's what made the WSB folks so mad. They took a position 140% short to kill the stock  since Dec at least 1.4 times over.  The hedge fund saw this coming and still double down , because they didnt think much of WSB folks. 

They will sell nake and pray that the people that join in later was not aware how desperate they are and sell in a fizzy when they see the price drop. And those that bought using margin. These people will sell when they see decent earning. People will want to realise their earning somehow.

It will be volatile in the coming days.. just like in stock investment. You need to know the 'fundamentals'. 

 Short is always a dangerous position... 

Edited January 31, 2021 by Jrage

[Wt_know]

if i have 100 GME shares ... i die die don't sell 

hedge fund cannot cover ... even for the 100% short ...

the share price can go up to $1,000 per share? lol

Edited January 31, 2021 by Wt_know