Hedge Fund short-sellers get their butts handed to them..now want the amatuer traders regulated LOL

[MissMillie]

https://www.msn.com/en-us/money/savingandinvesting/gamestop-reddit-an-explainer-on-what-s-happening-in-the-stock-market/ar-BB1d9weh?li=BBnbfcN&ocid=U483DHP

GameStop? Reddit? An explainer on what's happening in the stock market

*snip*

Since short sellers — frequently hedge funds — are essentially betting against a company’s success, it can be a risky position to take. Any positive news or enthusiasm for the stock will push up that stock’s valuation, minimizing profit taking for the short seller. In the case of GameStop, chatter on massive online trading forums invigorated interest in purchasing the stock, pushing up the price, which in turn fueled more interest.

The speculative trading left short sellers with no more shares to buy in order to cover their position, creating a short squeeze, and leaving them with millions of dollars in stocks that they bought at a high price but which they then needed to offload at an even higher price.

S3 Partners, a financial data company, said Wednesday that its analysis found short sellers had lost $23.6 billion on GameStop in 2021.

[Ferrets are Cool]

1. Ya just knew this was coming. They think they are gods and ONLY they should be able to

manipulate the market.

[bdtrppr6]

2. good

all those fuckers need to be outlawed anyhow

[bullimiami]

7. :) church of the subgenius.

[MyNameGoesHere]

3. I'm not getting the humor of this

Does it mean that anyone can manipulate the stock market and people that are not millionaires could lose money because someone wanted to prove a point? Let's do banks next?

[MissMillie]

5. Hedge funds were looking to make a mint off of short-selling these stocks

and in the meantime, but Game Stop out of business.

Much the way the real estate market was manipulated before the 2008 crash.


The amateur investors working through Reddit foiled their efforts.

[EarthFirst]

4. Not only GME; but AMC, BB NOK, BBBY...

There’s millions being made while equities firms are losing billions.

I have no sympathy for Citron Research or Melvin Capital and their “activist” tactics.

[judeling]

6. That article was a bit of a whitewash

The short sellers had promised to buy 140% of all the stop an impossibility. They had done that by borrowing money and renting each other stock they didn't even own.

They got caught with their pants down. And some people decided to let the world know. The unwashed masses didn't play nice and give them a chance to duck out gracefully. In arrogance several of them decided to double down and got burned more than once, as they thought they could use their privileged muscle.

[PoliticAverse]

8. "He who sells what isn't his'n, must buy it back or go to pris'n."

https://usatoday30.usatoday.com/money/perfi/columnist/waggon/2005-11-24-short_x.htm

[gratuitous]

9. Yeah, that's a shame

The pros get caught out like that, and they are suddenly begging for the oppressive weight of regulation to mash down on the invisible hand of the free market.

[Fullduplexxx]

10. Watch how fast it happens

Last edited Thu Jan 28, 2021, 12:56 PM - Edit history (1)

1.28.21
That was fast


Progressive Democrats in Congress are speaking out about the massive, Reddit-fueled spike in GameStop’s share price, with Sen. Elizabeth Warren (D-Mass.) scolding the "hedge funds, private equity firms, and wealthy investors dismayed by the GameStop trades" while noting that those in the past "have treated the stock market like their own personal casino," as the Securities and Exchange Commission also announced Wednesday it was reviewing the market volatility.

[ProfessorGAC]

11. Um!

Short sellers lost $23.6 Billion in value?
Per Macrotrends dotcom:

GameStop annual/quarterly revenue history and growth rate from 2006 to 2020. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income.
-GameStop revenue for the quarter ending October 31, 2020 was $1.005B, a 30.16% decline year-over-year.
-GameStop revenue for the twelve months ending October 31, 2020 was $5.162B, a 29.63% decline year-over-year.
-GameStop annual revenue for 2020 was $6.466B, a 21.96% decline from 2019.
-GameStop annual revenue for 2019 was $8.285B, a 3.06% decline from 2018.
-GameStop annual revenue for 2018 was $8.547B, a 7.31% increase from 2017.

The total revenue for 3 years was $24.2 billion. The projected 2020 revenue is around $5.4 million.
But, short sellers held equities worth 4x the 4 year average of total revenues?

Sounds like the short sellers were suckers. Or sharks looking for suckers.
Either way, it was investment based on somebody being an idiot. It's not remotely tied to financial power.

[cbdo2007]

20. They are actually shorting more shares than are even available, so that is part of the play as well.

Is for the holders of the stock to keep the stock up and don't sell, so no matter what the hedge funds do, it is impossible for them to actually bring the price lower like they need to because the number of shares available aren't enough to make it work.

[3Hotdogs]

12. Lets take AMC, its easier to understand.

We all know AMC lost money, lots of money because nobody went to movies since March.

Do you think AMC stock will continue to decline? I do.

And if I own the stock and think it will decline, I will sell it.


Now, some guy smarter than me, saw what was happening and decided in April, to "short" the stock. -- or buy "Put" options.

If he is right, he will make a profit.

Is he a criminal or immoral because he thinks he saw a opportunity?

[marylandblue]

15. Not criminal or immoral, but long investors hate them,

because they make money off of other's people's pain. So when a group of longs makes money off of their pain for the first time in history, it's delicious. It's even more delicious that it wasn't another investment firm that did it, but just a bunch of lowly small dollar investors.

[Baitball Blogger]

13. "Game Stop" Ka-huk.

[turtleblossom]

14. See? If you want to have a conversion with Wall Street, you have to do it with MONEY.

Protest marches and calling up politicians do not work.

[SWBTATTReg]

16. Good. Just be safe in the long run, when the financials of said companies do eventually ground ...

it in reality...also scary, being that financials are being ignored and the 'mob' driving the market is pricing the shares. However, all of us had to deal w/ the 'mob' from investment firms driving the pricing, not us, and now the shoe's on the other foot. Sic 'em, all, these thugs have squeezed us out of our money by joining together in the past and putting the squeeze on us 'little ones'...it's time that they feel the pain (investment firms).

[Generic Brad]

17. Funny now. Not when the day traders sell though

A whole lot of people will lose their shirts when the inevitable sell off happens.

[StClone]

18. Elizabeth Warren Smacks Wall Street, more

That’s when a group of amateur traders on the Reddit board decided to make a stand against the Wall Street elites, driving up the price of GameStop stock. It’s now up more than 1,000% since the start of January.

What’s ensued is chaos: At least one hedge fund shorting GameStop stock has required a massive bailout as a result of the surge in its price.

The whole mess is essentially a clash between righteous amateurs and the establishment.

https://www.huffpost.com/entry/sen-warren-gamestop-reddit-stocks_n_6011d3d8c5b67848ee7d9361

[Fullduplexxx]

19. And now ...Progressive Democrats in Congress are speaking out about the massive, Reddit-fueled spike

Progressive Democrats in Congress are speaking out about the massive, Reddit-fueled spike in GameStop’s share price, with Sen. Elizabeth Warren (D-Mass.) scolding the "hedge funds, private equity firms, and wealthy investors dismayed by the GameStop trades" while noting that those in the past "have treated the stock market like their own personal casino," as the Securities and Exchange Commission also announced Wednesday it was reviewing the market volatility.