Reddit Vs hedge funds

[Rjk]

Re: Reddit Vs hedge funds

There's little difference in a hedge fund pushing a share price down, or a reddit group pushing it up. After recent events, I would have thought that hedge funds will take steps to ensure that they don't get caught like that again. Does sort of kill their business line though?

What does that business line contribute to the world? nothing as far as I can see. It should be made illegal itself.

[Poolerblue]

Re: Reddit Vs hedge funds

Huge hedge funds shorting stocks is at best an immoral way of manipulating the market and I think it is banned in certain countries

I’m glad that many of them are getting their fingers burnt. However, manipulating the market to send the stock higher is just as bad

While a small number of people make a lot of money, many more people caught up in this nonsense actually lose out

[FormerlyJohnnyBreadhead]

Re: Reddit Vs hedge funds

I'd be interested to know the background behind this. Is it a deliberate attempt to cause hedge funds to lose massive amounts of money? If so, why, and is that wise?
What's to stop the same group of people (who now have a lot more cash to play with) doing the same thing with other shares? If that happened, then 'manipulating the market' would be exactly what it is, surely?

It's what hedge funds have done themselves for decades. Interesting how when a bunch of part time enthusiasts do the same thing, it's suddenly market manipulation. And don't even get me started on the shit these firms have been pulling on the after hours market this week when retail investors can't trade.

Make no mistake, the likes of Melvin bought this on themselves by getting greedy with their shorts. If WSB hadn't spotted the squeeze opportunity, I guarantee someone else on Wall Street would have.

In terms of the 'why', I think it started as just that - some guys on the internet reading some charts and spotting an opportunity. As the price rose, more and more people will have jumped on board hoping to make a quick buck.

But in the last week there's a moral element that has come into play. You only have to look at the demonization of the Redditors in the mainstream media to see what's going on here. It's become more about the little guy taking on the old white rich establishment than anything else. And unlike most protests, such as Occupy Wall Street, it's actually hitting them where it hurts. As an example, there's a brilliant open letter on WSB from a guy who is in this purely as revenge for what happened to his family in 2008.

Blackberry is seemingly the next highly shorted "target", which, unlike Gamestop, actually has a lot of value going forward. Unfortunately, I think the SEC and the Wall Street elites will ensure that the rules are changed in their favour before we'll see a similar repeat.

[lardy]

Re: Reddit Vs hedge funds

Robinhood (the stocks app used by many on Reddit in the US) isn't allowing GME stocks to be purchased. Maybe there's been some outside influence on them.

Is this the end of the road? Opening stock price will be a big fall, it seems.

[Former Labour leader]

Re: Reddit Vs hedge funds

Amazing. Hedge funds need to be brought to account. Hope this has made the wider public that they are little more than crooks

[Croesy Blue]

Re: Reddit Vs hedge funds

GME starts down today, definitely market manipulation by blocking the purchase.

[tforturton]

Re: Reddit Vs hedge funds

People are cashing in, and selling their holdings, so the stock price falls. That was bound to happen with such big gains. It's hard to resist cashing in, if your stock is worth fifty times more than you paid.

[lardy]

Re: Reddit Vs hedge funds

People are cashing in, and selling their holdings, so the stock price falls. That was bound to happen with such big gains. It's hard to resist cashing in, if your stock is worth fifty times more than you paid.

I don't think that's what happened. This price change was outside of trading hours.

[Croesy Blue]

Re: Reddit Vs hedge funds

People are cashing in, and selling their holdings, so the stock price falls. That was bound to happen with such big gains. It's hard to resist cashing in, if your stock is worth fifty times more than you paid.

Na opened 260 up to 371 already

[Eric Cartman]

Re: Reddit Vs hedge funds

I think Robinhood has destroyed itself in the space of two days. It will it be sued for clearly manipulating the market after taking a nudge from wall street and even if they slither out of that, nobody is going to trust them in the future.

What a shitshow, any numbnuts that now harps on about the virtues of 'free market economics', point them to some other solar system because that certainly isn't the case on earth. One rule for the rich, another for the poor.

[Eric Cartman]

Re: Reddit Vs hedge funds

People are cashing in, and selling their holdings, so the stock price falls. That was bound to happen with such big gains. It's hard to resist cashing in, if your stock is worth fifty times more than you paid.

It is also hard for a stock price to go up if people aren't allowed to buy

[life on mars]

Re: Reddit Vs hedge funds

Capitalist pigs

[WJ99mobile]

Re: Reddit Vs hedge funds

It's what hedge funds have done themselves for decades. Interesting how when a bunch of part time enthusiasts do the same thing, it's suddenly market manipulation. And don't even get me started on the shit these firms have been pulling on the after hours market this week when retail investors can't trade.

Make no mistake, the likes of Melvin bought this on themselves by getting greedy with their shorts. If WSB hadn't spotted the squeeze opportunity, I guarantee someone else on Wall Street would have.

In terms of the 'why', I think it started as just that - some guys on the internet reading some charts and spotting an opportunity. As the price rose, more and more people will have jumped on board hoping to make a quick buck.

But in the last week there's a moral element that has come into play. You only have to look at the demonization of the Redditors in the mainstream media to see what's going on here. It's become more about the little guy taking on the old white rich establishment than anything else. And unlike most protests, such as Occupy Wall Street, it's actually hitting them where it hurts. As an example, there's a brilliant open letter on WSB from a guy who is in this purely as revenge for what happened to his family in 2008.

Blackberry is seemingly the next highly shorted "target", which, unlike Gamestop, actually has a lot of value going forward. Unfortunately, I think the SEC and the Wall Street elites will ensure that the rules are changed in their favour before we'll see a similar repeat.

Is this ASE back?

[FormerlyJohnnyBreadhead]

Re: Reddit Vs hedge funds

I think Robinhood has destroyed itself in the space of two days. It will it be sued for clearly manipulating the market after taking a nudge from wall street and even if they slither out of that, nobody is going to trust them in the future.

What a shitshow, any numbnuts that now harps on about the virtues of 'free market economics', point them to some other solar system because that certainly isn't the case on earth. One rule for the rich, another for the poor.

Robinhood is owned by Citadel, the company that just gave a 2.5bn dollar loan to Melvin to stop them from collapsing (by the way - RH has long made money by selling customer order data to Citadel, which is a shit show in itself).

Stopping the buys was bad enough (and the first lawsuit has already been filed against RH by a guy in New Jersey), but they are being used as the fall guy here. The real kicker is the very credible rumor now circulating that Citadel recalibrated its short positions prior to the shutout. If that's true then there needs to be some serious prison time being handed out.

The outright illegality of what's gone in the last few days is shocking, even by Wall Streets grimy, immoral scumbag standards.

[life on mars]

Re: Reddit Vs hedge funds

Robinhood is owned by Citadel, the company that just gave a 2.5bn dollar loan to Melvin to stop them from collapsing (by the way - RH has long made money by selling customer order data to Citadel, which is a shit show in itself).

Stopping the buys was bad enough (and the first lawsuit has already been filed against RH by a guy in New Jersey), but they are being used as the fall guy here. The real kicker is the very credible rumor now circulating that Citadel recalibrated its short positions prior to the shutout. If that's true then there needs to be some serious prison time being handed out.

The outright illegality of what's gone in the last few days is shocking, even by Wall Streets grimy, immoral scumbag standards.

Joe Biden will sort it , just watch this space .