Reddit Vs hedge funds

[Rjk]

anyone else been reading up about this?
serves the parasites right.

more of this sort of thing.

[Croesy Blue]

I've been looking at it since last week, very disappointed I didn't put any money in GME it was around 100 usd when I first started paying attention!

Seems to have been a bit of a drop afterhours, be interesting to see if there's another squeeze today.

I got a nice increase in my cine shares which seems to be linked as it is a highly shorted share too.

The WSB subreddit got locked and discord deleted last night, it's like the bookies no rules if they're making money, more rules if they start losing.

[Croesy Blue]

Just saw GME is up 23% pre market, will be another interesting day

[lardy]

The sub reddit is up again now.

I've been reading up today on it. But obviously not enough. How do we find out what price the shares will open at?

[tforturton]

I don't understand how they can say that a group of people getting together to buy up stock is 'manipulating the market'. Surely a hedge fund betting that a stock will go down is 'manipulating the market' just as much, if not more? Also interesting to see that hedge funds are now getting out of other low-priced stock, such as Blackberry, as they think something similar might happen there.

The owner of Gamestop is the one who has made the most money, though of course it's only hard cash if he sells his shares. The sad thing is that once everyone starts selling up, and cashing in their earnings, the share price will go back to where it was. It's a retail business in an online world - it can't last forever. So in a way, the hedge funds were right all along, it's just someone took them for a very expensive ride.

[Croesy Blue]

Exactly!

https://old.reddit.com/r/Wallstreetb...te_megathread/

The WSB thread on the subreddit being banned/set to private is worth a read

[Pedro de la Rosa]

I don't understand how they can say that a group of people getting together to buy up stock is 'manipulating the market'. Surely a hedge fund betting that a stock will go down is 'manipulating the market' just as much, if not more? Also interesting to see that hedge funds are now getting out of other low-priced stock, such as Blackberry, as they think something similar might happen there.

The owner of Gamestop is the one who has made the most money, though of course it's only hard cash if he sells his shares. The sad thing is that once everyone starts selling up, and cashing in their earnings, the share price will go back to where it was. It's a retail business in an online world - it can't last forever. So in a way, the hedge funds were right all along, it's just someone took them for a very expensive ride.

The hedge funds have borrowed money against their options, so some of them are going bankrupt and then immediately getting bailed out. But of course, there isn't any money available for people who need it...

[tforturton]

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?

[tforturton]

Reminds me of the final scenes of 'Trading Places'. Anyone remember that film?

[WJ99mobile]

Can someone link me up - will be interesting to read

[lardy]

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?

Thank you to whoever explained this - @reddit is incredible

������ pic.twitter.com/zKRlbP41gJ

— Jimmy Kelly (@_jimmykelly) January 28, 2021

[tforturton]

Very clear explanation. The big question is - why?

[Feedback]

Very clear explanation. The big question is - why?

generally the likes of reddit and imgur are communities that do this sort of thing.

[tforturton]

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?

[chris lee]

I do a lot of short term trading on 212, and also use reddit for stock tips, So been following this all the way. A lot of platforms including trading 212 have blocked new purchase orders today on GME and AMC essentially attempting to drive the price back down, which is leading to lots of conspiracies!

[Rjk]

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]

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]

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]

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]

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]

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

[tforturton]

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]

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]

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]

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.