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GameStop Is Rage Against the Financial Machine
- EVa5I7bHFq9mnYK 6y agoThe Wall Street doesn't make money on direct bets, but on option spreads, commissions, margin rates, order flow etc. So they must love Robinhood and WSB ... the more excited the retail dummies are - the better, in the end the house always wins.
- rabuse 6y agoI bought into this at around $80. Was shocked to wake up and see it at $350.
- vga805 6y agoi bought gamestop a few weeks ago at 17... then sold at 20 something fortunately i was able to get back in around 40. this is an historic moment
- Kluny 6y agoI tried to buy last night at $146, but I didn't get in before the market closed. Today I bought one single share at $360 and I feel like an idiot on multiple levels. Pure gambling, but it's fun.
- dannyw 6y agoI doubt you’d be feeling like an idiot if the short squeeze actually happens, sending the stock to wonderland ($$$$).
- Blackstone4 6y agoHow do you know it is not in wonderland already? What price would you put on it? For me what is important is the fundamental valuation of the company...
- Kluny 6y agoNormally that's true, but I don't think the company's actual valuation has much to do with what's happening here - the company is basically worthless. The only question is how much money you're willing to throw away, because absolutely no one can predict what will happen tomorrow.
- jscheel 6y agoI bought quite a bit around 88, later theorized that shorts would be able to stair-step down to ~60 on circuit breakers yesterday (like the day they did before), so I sold around neutral. Feeling pretty dang dumb now.
- deleted 6y ago[deleted]
- jdjfktkrnj 6y agoSo, do people still think Efficient Market Hypothesis is a thing? If this doesn't prove that the stock market is just a video game, which decoupled from economic reality a long time ago... We've now entered the age of the meme stock market.
- mam2 6y agoWell until you have a definite consistent strategy to make money off it, its still "efficient market" with noise. The noise just got bigger...
- dangoldin 6y ago“The market can remain irrational longer than you can remain solvent.” - supposedly John Maynard Keynes
- jdjfktkrnj 6y agor/WSB likes to rephrase this as "we can remain retarded longer that they can remain solvent"
- xiphias2 6y agoI hope it's true...I want to see Melvin bankrupt, especially after the ,,we closed our positions'' bs. I don't know why but it sounds so much fun :)
- vmception 6y agoQuantum Market Hypothesis In one dimension, the new GME management (which did occur) does a secondary market offering directly into liquidity, recapitalizing themselves which changes all the fundamentals. This wouldnt be known information because the expectation of no liquidity, but now that there is liquidity it creates new information
- schnevets 6y agoThe only way this could get stupider is if GME took their impressive new warchest and bought/merged with Valve, pulling a unicorn into the stock market. At that point, reddit would have memed a brick and mortar retailer into a SPAC.
- ping_pong 6y agoIt's really not. Because eventually retail is going to get destroyed. Yes, some hedge funds have lost their shirts, but those are the first ones who were in the short before the squeeze. The hedge funds and more importantly day trading shops making money right now are the ones who saw the activity and are goosing the stock price right now. I don't know if people realize that there are thousands of day trading shops where hundreds of people are in a single room, like an internet cafe, where people are day trading at terminals and people bark orders to each other and they all jump on the same stocks. These are probably the shops that are responsible for most of this volume. There is no way that WSB boosted the price for $40 to $400. Those are hedge funds and trading shops that jumped into it afterwards. They will sell at the top, and retail investors are going to buy on the fall, thinking it's "on sale" and then they will get wiped out.
- mam2 6y agoOr not.. people have been saying that about tesla for years..
- tempsy 6y agothat isn’t what the article is saying. it’s arguing that the short squeeze is less about pure profit making, though of course that’s part of it, but more about actively trying to hurt hedge funds who are naked short selling and potentially forcing them to liquidate as a sort of populist driven “payback” against the elite.
- vmception 6y agoDiamond hands This is a financial term now
- throwaway63d2b 6y agoThe duplicity of the media here is funny! Melvin has not closed out of its short position.
- VikingCoder 6y agoIs there any way for us to know for sure, other than them announcing their positions, or losses?
- tempsy 6y agothe reality is all of their major shorts are being squeezed not just Gamestop, but I agree I think their CNBC interview was just a distraction and doubt they could’ve closed out their entire short position overnight.
- VikingCoder 6y agoDumb question - could the shorts actually negotiate with Gamestop directly to get them to issue new stocks? Wouldn't that be a win-win (and the retail loses, because a) the stock is diluted, and b) no one would be "forced" to buy from them)
- tempsy 6y agowho knows but their market cap has become so bloated that any new issuance would probably not be that dilutive. i doubt that is what would trigger a crash.
- dannyw 6y agoSounds like a great way for management to get into a fiduciary duty lawsuit.
- VikingCoder 6y agoIf no one is selling GME, but someone is willing to buy GME, and GME actually gets to pocket the cash, that sounds like it would be in the long-term interest of GME shareholders to me. But like I've said elsewhere, I'm an idiot.
- colllectorof 6y agoIf you want an entertaining explanation of what's going on with GameStop's stock, I highly recommend these videos from Louis Rossmann: https://lbry.tv/@rossmanngroup:a/wallstreetbets-vs-citron-research:d https://lbry.tv/@rossmanngroup:a/wallstreetbets-vs-citron-re... https://lbry.tv/@rossmanngroup:a/why-mainstream-media-s-slander-of:c https://lbry.tv/@rossmanngroup:a/why-mainstream-media-s-slan... https://lbry.tv/@rossmanngroup:a/gamestop-shorts-lose-billions-get-2:d https://lbry.tv/@rossmanngroup:a/gamestop-shorts-lose-billio... https://lbry.tv/@rossmanngroup:a/gamestop-shorts-are-full-of-about:3 https://lbry.tv/@rossmanngroup:a/gamestop-shorts-are-full-of... (That's how I learned about the whole thing, which I frankly find fascinating.)
- wyxuan 6y agoI lost my respect for Rossman after he uploaded a video cursing out short sellers after $AGRX sunk after getting approved. Bio stocks almost always sink after PDUFAs, but he was just raging after what he thought was market manipulation.
- IIAOPSW 6y agoI was disapointed in some of his videos about Coronavirus and Cuomo's executive orders. But then I remembered that he is neither a stock trader nor an epidemiologist. His channel is fundamentally an opinion show. Its a good opinion show, but still an opinion show. When he starts giving opinions on things far outside his wheelhouse he becomes a more-rational-than-average lay person.
- tpmx 6y agoHe's so smart.
- paulpauper 6y agoI call them 'professional morons'--high-profile who have a lot of status and money and clout in various tech and investment fields despite being sorta dim and banal
- AdmiralAsshat 6y ago> These points doubtless make me appear to be a complacent shill for the financial industry, talking down to the rubes. For the record, I’m still angry about the way workers were ripped off in Britain more than three decades ago, and about the way the little guy ended up bearing the brunt for the financial implosions of 2000 and 2008. But it looks horribly to me as though the same thing is going to happen again — and I don’t think the answer to today’s many ills is to empower poor people to bankrupt themselves with margin accounts and derivatives. Who is this hurting, exactly? The author is making it sound like messing up the short stock is somehow hurting "the little guy" in the long run, and I wouldn't see that happening unless: a) Gamestop is somehow in a bunch of mutual funds tied to employee pensions/401k's b) The "little guy" refers to the Reddit traders that are making a killing right now, with the expectation that eventually the stock price will crash again. As best I can figure, most of the /r/ guys are doing this as a form of trolling and aren't expecting to get rich off it or pour their live-savings into it. And again, as best I can figure, the only people this "hurts" are the ones who were originally shorting the stock. So if this comes down to guys on Reddit pissing in Wall Street's cornflakes, it's hard for me to feel sympathetic for Wall Street.
- chrisseaton 6y agoAren't almost all companies like this an integral part of almost everyone's pensions? Through your pension you're probably an investor in tens of thousands of companies and funds.
- yellowapple 6y agoRight, which means that a single company having a weird day probably won't have much of a noticeable impact on those pensions at all.
- Apocryphon 6y agoYou’re not wrong, but are there pension funds that include revenue made from shorting stocks? Seems like a reckless practice if there are.
- 6y ago
- voisin 6y agoWhy doesn’t GME issue some shares at these prices and pay off all its debt and add cash to the balance sheet?
- dannyw 6y agoBecause GME already has more cash than it’s debt. It’s always had a great balance sheet. Shorts were not very justifiable: it was hardly going to go bankrupt.
- kgwgk 6y agoIt doesn’t have to go to bankrupt, it just has to go down.
- odiroot 6y agoMatt Levine is speculating that they're doing exactly that.
- jdjfktkrnj 6y agoSome say that would be illegal, since GME knows these prices are wrong, and thus they would be guilty of fleecing whomever buys them. But supposedly they could make the investors sign a waiver that they acknowledge this?
- voisin 6y agoThis is not accurate. There is no such thing as “prices are wrong”. The price is being set by arm’s length third parties transacting. Their motivations may be questionable but that doesn’t make the price “wrong”.
- ipnon 6y agoMaybe Robinhood's mission of democratizing finance is succeeding. The locus of power is being sucked out of Wall Street into a lumbering giant in the hills. My question is: how isn't this the most useful outcome for the most people?
- bern4444 6y agoIt absolutely is. This is competition forcing entrenched companies to adapt and compete. Funds will have to compete by offering new financial products/models/offerings/services etc. The public now has access to information and means of trading at a level that was never before possible. All the funds must be crazy upset since their once cornerd industry, gated by terminology, tools, information and institutional knowledge is suddenly far less valuable. This at its core is exactly how a market should work. People made stupid trades, and a bunch of others figured it out and called them out. Perfect self regulating behavior but only possible due to the massive expansion of access to information and tooling by individuals. What WSB and similar communities do is no different than a fund manager going on the news and stating their recent positions and reasoning.
- boring_twenties 6y agoYes, except the stated (and true) reasoning is "because fuck you, that's why."
- Blackstone4 6y agoWell if the valuation where it is now is undeserved then it will likely come down. It may well be over priced so there is a chance investors loss money from here. Not sure if this democratizing....true democratizing is giving retail investors access to financial markets on a level playing field (information, trading/prices, all assets).
- zappo2938 6y agoMeanwhile a handful of families still own and control 70% of all stocks which aren't traded, that is they aren't buying or selling and will likely transfer the ownership to family in decades time. The only way that will change is by changes in taxation. What we are looking at with WSB and GME is a very, very tiny perspective of the entire machine. It is interesting but a very small influence on the entirety. Nonetheless, all these instruments, such as short selling and options, are designed to create liquidity and stability. It's working by design. This isn't a bug, it is a feature.
- blhack 6y agoOkay a serious question: at what point does it make sense for these hedge fund guys to just purchase reddit and shut it down? To be clear: I don't think that would work, but I think we're at the point where stuff like that is going to be tried. These guys are losing BILLIONS of dollars. Billions. Can they spend $1B to prevent the loss of $2B? (Is reddit worth more than $1B?) Other stuff I won't be surprised if we see: * Massive astroturf campaigns (the WSB mods are claiming that this is already happening. * DDOS attacks on reddit * Attacks against the mods of WSB * "Institutional" attacks like SEC involvement It's just sortof crazy to think what it looks like when there is this much money on the line. Everything goes out the window.
- vmception 6y agoGotta hit discord and telegram too Telegram has threads now on announcement channels that are unlinked from discussion channels
- blhack 6y agoDiscord and telegram are big, but there's no way they're as big as WSB. I can just go to reddit.com/r/wallstreetbets and watch the show, I don't even know how to begin finding the same thing on discord. And to put into focus how many people are involved here: the GME discussion threads go to tens of thousands of replies within MINUTES of being posted.
- boringg 6y agoI gotta give Bloomberg credit here - they really nailed the title on the article. Normally I complain about clickbait but this is right on the money. Gotta give credit where it's due.
- cwhiz 6y agoI am loving every minute of this. The "professionals" gamble on the market all the time, front run, high frequency trade, and relentless tactics to get rich at the expense of the "retail" investors. Now they are upset that apps like Robinhood has provided unprecedented access to the markets. Their exclusive access to insane gambling nonsense is being torn down in real time. If Wall St can gamble and cause a global financial crisis, I see no reason why "retail" traders can't fuck around on Robinhood and cause some meme stocks to explode. I think what is really going on here is that the "professionals" are bothered that the "idiots on WSB" are making a mockery of the market. Make no mistake, the market is already a mockery, what's happening now is that the public is finding out.
- this_user 6y ago> I see no reason why "retail" traders can't fuck around on Robinhood and cause some meme stocks to explode. It's called 15USC78i "Manipulation of security prices" [1]. It is unlawful to transact just for the purpose of forcing others to transact. Going through a fund's 13F filings, and deliberately driving up the prices of put options they sold should fall squarely into that area. And there are more than enough posts on reddit of people stating that this is exactly what they are doing. At the scale this is happening now, there is no doubt that there are going to be legal repercussions. [1] https://www.law.cornell.edu/uscode/text/15/78i https://www.law.cornell.edu/uscode/text/15/78i
- nceqs3 6y agoSteve Cohen and Gabe Plotkin both traded on inside information at SAC (Gabe was cc'ed on several of the communications). Why are they not in jail? Ohhhh because the justice system only impacts the 99%.
- this_user 6y agoThat's some nice whataboutism, but that doesn't mean this isn't exactly the kind of market manipulation for which the Securities Act of 1933 was written.
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- unethical_ban 6y agoSo, can someone explain rationally how options/derivatives are actually useful to the economy, rather than a market manipulation and gambling mechanism? In the traditional, elementary school understanding of stock, people buy into a company because they want part ownership, and the stock goes up as the company does well and has solid financial strength. Derivatives seem to be an unnecessary accelerator.
- shmoogy 6y agoIf you use them like WSB they are an unnecessary accelerator, they're intended for being used as a hedge (and probably other things more savvy investors know more about).
- jacksnipe 6y agoI'm generally sympathetic to the idea that financial derivatives are a great evil, and a huge part of what feels "broken" about the current system. However, consider futures, which are very similar to options. Futures were, as I understand it, popularized in Chicago as a way for farmers to be able to get money for their crop right now, at a fixed price. In this way, they could pass the risk -- and a little bit of the profit -- off to people with more capital, who were better able to weather all possible outcomes.
- croon 6y agoAnd in practice, how would that be different from incorporating and selling stocks to those investors, thus raising money now, and then growing in value as the crops are reaped?
- deleted 6y ago[deleted]
- xmprt 6y agoEven futures markets aren't protected from this manipulation. The Onion Futures Act has an interesting story.
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- btbuildem 6y agoSure, people are angry. People are angry all the time. This however is as old as the game itself. It's ALWAYS about greed and fear. That part is as predictable as gravity.
- thepasswordis 6y agoThere's a mantra among these people of "I just wanted to play video games, why couldn't you leave me alone?" The culture of a lot of redditors and internet trolls in general seems to be that they feel like they are the eternal punching bag of society. They were the punching bag in high school, they didn't get into a good school (or go to college at all), and now they're the punching bag of society as "incels" or "white males" or whatever, and I think what you're seeing here in a big way is them fighting back. A comedian named Tim Dillon somewhat accidentally NAILED the sentiment here: https://www.youtube.com/watch?v=-0pgEWcq_YQ https://www.youtube.com/watch?v=-0pgEWcq_YQ (NSFW language).
- diarrhea 6y agoI'm not sure there's much of an overlap. Incels are a rather small group, and I think most wallstreetbets users are surprisingly... normal. You can't bet on stocks if you're poor. So you'll have lots of mid/late 20s educated guys with decent incomes. This to me really feels like a classic "for the lulz" (and some personal profit), avalanche-style event.
- me_me_me 6y agoThis. Plus every subreddit has different make up. Its pretty ignorant putting all reddit as one homogenious group.
- as1mov 6y agoThis applies even to the internet "cesspools" really. Most of my friends were/are regular posters on reddit/4chan, and they are surprisingly normal. All of them have decent jobs that pay well, some are married. If you met them in real life, you couldn't really tell there's something wrong with them. They seem a far cry from what internet tells you a 4chan user looks like. Funny enough, none of them (including me) are white.
- diarrhea 6y ago> you couldn't really tell there's something wrong with them. Okay, but is there? The way you're phrasing it sounds that merely posting to 4chan makes them abnormal. The other way around is true: there's an unusually high share of abnormal people on 4chan. Just posting there shouldn't be a sign of abnormality. It's just a Mongolian basket weaving forum after all.
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- mdoms 6y agoBloomberg seems determined to make people feel bad for the short sellers. No. I will not. They made a gamble and it costs them billions. Good. No one should be gambling with billions on the line, for any reason.
- arafa 6y agoAm I missing something in the Gamestop news that isn't "hedge fund gambles billions on naked shorts and loses"? That seems like a real blunder on their part. In other contexts we would just call this gambling, I think. Shorts have infinite liability, not hedging them is not something I can get behind.
- krok 6y agoYou are missing something - these aren't naked shorts. The fact that more than the whole float is out on loan does not imply that naked shorting is going on.
- arafa 6y agoPlease explain. I thought this was the whole purpose behind hedging, was to avoid the short squeeze. Are people reneging on the purchase agreements or overpromising? How can we know these aren't naked shorts and if so, why are they still facing the short squeeze?
- krok 6y agoYou can have a short squeeze without naked shorting. Shorts who aren't naked have borrowed the stock from someone. If that person asks for it back, they have to go out and buy it in order to return it. At least in theory, if retail investors buy up the stock, some of the institutional investors who own it, and who have lent it out, will sell it to them. This could mean that they recall lent stock. As this happens, shorts might have to compete to buy the stock. Equally, as the price gets higher, shorts might have to cut their losses, which also means buying back the stock. If the people buying it now don't sell it and don't lend it they will withdraw a lot of the supply.
- arafa 6y agoSo it seems the issue is that people have borrowing agreements that can be recalled early (seems like it functions like a margin call in a way). Call it half-naked shorting, I guess. Still seems risky. I feel like they could've just bought call options and called it a day instead. Maybe that's too naive or call options are hard to find/pricey for Gamestop? That still doesn't explain how you know folks aren't naked shorting. Maybe you can read the trades?
- shuntress 6y agoOne of main points I've seen from people angry about a perceived deliberate manipulation to reduce Gamestop's stock price is that this will directly impact retail workers in the form of job loss. Could anyone explain how this might happen? My naive assumption is that the relationship between a company and it's stock is (mostly) one-way. If a company cuts jobs, this along with all other signals from that company will be perceived by the market in some way and potentially impact the price of stock in that company. Would the opposite ("Our stock price is going down, lets fire people") be at all likely to happen?
- alfl 6y agoStock prices typically rise after layoffs because the perception is that the company is cutting underperformers that don't have the same marginal contribution as the remaining staff. Generally, a declining stock price could have implications for debt covenants, compensation packages, and, requires selling more stock to finance the same level of capital expenditure.
- dec0dedab0de 6y agoI think that can happen if the board decides to sell the company because the stock is low, then it is bought by another company that just wants to extract as much profit as quickly as possible. For example by taking on a bunch of debt to pay themselves bonsues, then declaring bankruptcy and liquidating the remaining assets. I am far from an expert, but I think something similar happened to Toys R Us.
- ve55 6y agoI know everyone is having an absurd amount of fun watching this and laughing (so it seems), but I think we should be more aware of the many ways in which this is bad, which definitely includes millions of retail investors losing their money when they buy at the peak, use too much leverage, and so on. The idea of "Don't invest what you cannot afford to lose" has gone from a mantra to an outright joke that many investors now purposefully ignore, and not everyone can end up on the right side of this at the end of the day. This is without mentioning what type of institutional consequences we may see as a result, which I think there will be many including regulatory, but it's too hard to predict exactly what, given the mess that we're in. Again, the memes and redditors becoming millionaires are funny and I wish everyone the best, but there will be a vastly under-reported dark side to this story as well; life cannot literally just be everyone getting free money from nowhere with no downsides.
- TrackerFF 6y agoWSB users are taking out credit cards with both hands, mortgaging their homes, and what not to get in on the run. Some people are in for some very real and hard lessons - even though others will make a killing.
- yoyohello13 6y agoYeah as much as I enjoy this whole thing, the new regulations that come out of this will not benefit the average person.
- fairity 6y agoIt's impossible to time the top, but one thing you can say with certainty is that eventually the price of these stocks will come back down (because the underlying firm is clearly not worth its market cap). Hence, the smartest bet here seems to be buying put options that expire far out. Currently, the price of the $320 GME PUT expiring in Jan 2022 is $240. That seems like free money?
- bart_spoon 6y agoNote that $240 is the price of a put for a single share, which are typically bought in increments of 100 with options. So buying a single one of those options requires $24,000. There are definitely people spending that kind of money over in WSB, for given the volatility nature of the meme stock, its a lot of money to put on the line for anyone not in the WSB mindset, or who isn't so flush with cash that that's a drop in the bucket.
- fairity 6y agoYea, it's definitely not a small amount, but at the same time, it seems like a very safe bet given the fundamentals of the underlying company. You're basically betting that the volatility will subside within 1 year. If you're right, your ROI will be (320-240-X)/240 where X is the share price 1 year from now. If X is 30, ROI is 20%. Even if you're wildly wrong, and the share price is still $100 1 year from now, your ROI is only -9%.
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- anfogoat 6y agoIt is unbelievably telling how suddenly this sort of activity is a problem. I'm looking forward to seeing what kind of new regulations we're going to be enjoying as a result. Some people's feelings and sense of superiority are truly hurt by this I expect and the SEC are probably hard at work trying to figure something out and to the extent that they're failing to do so, salivating at thought of new powers. All in the name of saving the undeserving from themselves of course.
- TrackerFF 6y agoBut let's not kid ourselves here - a lot of WSB users are trading under the pretense that this is some great class war against the "elite". Here's what's going to happen, in the end (my predictions): - Some institutional investors will make an absolute killing - Some retail investors will make a killing - A bunch will make fast'n easy gains - A good share of retail investors will stand holding the bag. Sure, some short sellers / funds will lose their shirts, if they can't come up with the funds - but it's not the end for those managers. They'll continue to get work, and continue to short companies they think are on the way down. In the end, the "evil" hedge funds will walk out as the winners.
- spiralx 6y agoThis just seems like a continuation of the anti-short selling hysteria whipped up by Elon Musk over the last few years. As you say nothing will have changed in a years time.
- rantwasp 6y agothis is not about who and how wins. this is about a level playing field. the field is not level now and the sheeple are waking up
- asdfman123 6y agoThe evil hedge funds will start rolling out the astroturf and making money off of these campaigns. I wouldn't be surprised if the GME thing is astroturf already.
- jjnoakes 6y agoWhat I don't understand is all of the chatter in various places about how the short positions will be the only ones to lose. Even with more shorts than shares driving up the price, eventually when all shorts are covered, there will still be folks holding the original shares, and the demand will vanish. So not only will the short positions lose a lot of money, but everyone left holding shares will lose a ton of money as well. And if the float is 140% (or whatever) then isn't that like 2/5 of the total shares which is about to crash hard? So if you are holding $GME and get out randomly, you have a 2/5 chance of losing it all (by getting out after the shorts close)?
- xnx 6y agoWould the real power move be for everyone to pull their money out of the stock market? I realize that's not an option for those who don't already have money in it. If a few small players can expose the ponzi scheme/grift that is the modern stock market, that sounds pretty good to me.
- andred14 6y agothe financial machine is too busy smashing crypto :(
- esoterica 6y agoThe "retail traders vs Wall Street" narrative is so fucking stupid. Who do you think is earning PFOF for every trade that someone makes through their brokerage? Who do you think is earning the bid/ask spread every time someone buys or sells? Who do you think is collecting the theta from all the calls and puts people are buying? And last of all, who do you think is going to be left holding the bag when the price eventually collapses after the short squeeze ends?
- blueblisters 6y agoA more boring conversation about this is how will it actually impact Gamestop? Could the new price levels become a self fulfilling prophecy, with Gamestop being able to raise enough capital to revamp the business? "Irrational" retail investors have perhaps saved a company before - Tesla - by holding onto the stock even when every hedge fund was saying it's doomed.
- hehehaha 6y agoAs far as I know GME has not executed on any ATM sale which is very puzzling. Compare this to AMC which basically tripled its shares since last year. This leads me to believe that this is not all kosher. GME counsel is probably advising them to not go through with it. Frankly, I think Ryan Cohen bit off more than he can chew. His ideas to revive Gamestop is mostly half baked and there are way too many big players to compete against. Any money they raised from here will only delay the inevitable.
- chovybizzass 6y agowe're only just beginning. anything under $1000 for $GME is a buy
- tpmx 6y agoGotta feed the furnace so that you come out on top... https://i.pinimg.com/originals/f3/f9/6c/f3f96c06ddc73aa35cfa616f67008abe.jpg https://i.pinimg.com/originals/f3/f9/6c/f3f96c06ddc73aa35cfa...
- soybean 6y agothe short squeeze hasn't happened yet. punishing greed is so satisfying.
- cccc4all 6y agoThe wall street casino recoils in horror that some people are good at counting cards at black jack stock market and teaching millions in how to count cards at black jack stock market.
- neonate 6y agohttps://archive.is/9UwhT https://archive.is/9UwhT
- entwife 6y agoHow did this work? Is there a clear explanation with maximum math and minimum speculation about the emotional state of investors?
- paulpauper 6y agoA lot of ppl are expecting this to be dumped hard. i dont think that is going to happen. I think rather it is going to stabilize eventually and not crash, much like Tesla. The market tends to do what consensus does not expect. GME is flush with cash and has the backing of various high profile billionaires. It may make a major acquisition or something like that.
- paxys 6y agoThere is a massive difference between Tesla and GameStop. The latter is not flush with cash, but rather hundreds of millions of dollars in debt. Their revenue has been declining every quarter. There is no long term business plan, the digital game sales space is already too crowded. It will be a miracle if they can manage to turn around.
- paulpauper 6y agothat was 3 months ago . the market is forward looking.
- paxys 6y agoThe market is sometimes forward looking, and sometimes a bubble.
- hehehaha 6y agoI am tired of this misguided narrative that pits retail and r/wsb vs big bad wolf Wall Street hedge funds. This is not David and Goliath. There are hedge funds with deep pockets on both sides. Retail traders do not run sophisticated algos to jam the price 15 minutes from the open because they want to neuter circuit breakers. C’mon guys...
- whimsicalism 6y agoAgreed. It seems like everyone is learning the wrong lesson from this.
- jrochkind1 6y agoI would like to hear more about this. Has anyone found details in this particular case?
- marketneutral 6y agothis is a good thread: https://twitter.com/matthewstoller/status/1354508794638823426?s=21 https://twitter.com/matthewstoller/status/135450879463882342...
- dash2 6y agoI don't see anything there about algos being used to neuter circuit breakers. Just a claim about some large trades being made (which is interesting too, but different).
- mancerayder 6y ago> Retail traders do not run sophisticated algos to jam the price 15 minutes from the open because they want to neuter circuit breakers. How is that legal? > C’mon guys... In this particular instance, even if it is rare, it does certainly feel like a David and Goliath story?
- hehehaha 6y agoIt’s legal and to be completely honest was a pretty damn smart thing to do. I don’t think it’s David and Goliath. I feel like it’s Goliath using millions of Davids to do his bidding. Retail is getting used.
- kart23 6y agoCan anyone tell me why SEC won't just step in, suspend trading, and force some kind of resolution? Its obvious that the market has been effectively broken by the short sellers. It might just make the redditors more angry and likely to hit other shorted stocks, and possibly cause markets to decline, but its the best applicable solution i see. https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_tradingsuspensions https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_tr...
- rjbwork 6y agoThe forced resolution will be to force the shorts to cover. Screwing people that took the other side of the trade because the short sellers screwed up doesn't really make any sense to me.
- pvarangot 6y agoAlso the short-sellers are not being fooled into taking risks and neither are the call buyers. Everyone should know what they are doing.
- girvo 6y agoThough regulatory bodies “picking a winner” can happen, as unfair as it sounds. I would hope they wouldn’t in this situation though.
- kart23 6y agoyes, the resolution would entail that. its not about screwing people, its about fixing something thats broken. Isn't that what happened in 2008? Banks made stupid decisions, and government bailed them out for it. Obviously more complicated and probably higher stakes, but the crisis essentially boils down to that. Don't see why it can't happen here.
- Miner49er 6y agoIt's not like this is the first time a short squeeze has happened. Has the SEC stepped in for other squeezes? If they were gonna step in, it should have been when naked shorting was occurring, not now.
- dang 6y agoFor pointers to the many other threads on this story, see https://news.ycombinator.com/item?id=25933543 https://news.ycombinator.com/item?id=25933543. As for this thread, it's got 1000+ comments. If you want to see them all you'll need to click through the More links at the bottom, or like this: https://news.ycombinator.com/item?id=25930214&p=2 https://news.ycombinator.com/item?id=25930214&p=2 https://news.ycombinator.com/item?id=25930214&p=3 https://news.ycombinator.com/item?id=25930214&p=3 https://news.ycombinator.com/item?id=25930214&p=4 https://news.ycombinator.com/item?id=25930214&p=4
- 99_00 6y agoEverything that's happening right now reminds me of the 'day trading' craze in 2000.
- TheAlchemist 6y agoI get Gamestop. But anyone knows why is Nokia also being targeted ?
- reducesuffering 6y agoWSB retail is so ignorant these days, their only criteria are cheap ticker prices (GME, NOK, BB all started < $10) with a commonly recognized brand name to them, because that is all that matters to get people on board.
- nfriedly 6y agoI mentioned this on a different thread, but the Money Stuff column has had some pretty good (informative & humorous) coverage of the GameStop and r/wallstreetbets craziness. Monday: https://www.bloomberg.com/news/newsletters/2021-01-25/money-stuff-the-game-never-stops https://www.bloomberg.com/news/newsletters/2021-01-25/money-... Yesterday: https://www.bloomberg.com/opinion/articles/2021-01-26/will-wallstreetbets-face-sec-scrutiny-after-gamestop-rally https://www.bloomberg.com/opinion/articles/2021-01-26/will-w... Today: https://www.bloomberg.com/opinion/articles/2021-01-27/reddit-driven-surge-puts-gamestop-and-ryan-cohen-in-a-weird-spot https://www.bloomberg.com/opinion/articles/2021-01-27/reddit...
- hntrader 6y agoI'd like to know whether these retail investors see Gamestop as artwork or as speculation/investment. Artwork - they buy it not because of any intrinsic value or expectation of a dividend/capital gain, but because of reasons pertaining to subjective utility - childhood nostalgia, a desire to get symbolic revenge at hedge funds, entertainment value, or a desire to access gambling services in a country where online gambling is restricted. Investment - expecting to make a profit through greater fool hypothesis, a short squeeze, or because they believe in the company (e.g positive reflexivity of stock price and exposure leading to more funding and business, respectively). Arguably it's a combination of both, and I'd say it's a fairly new phenomenon in financial markets (not so much other markets), perhaps TSLA being another good example.
- supercanuck 6y agoit started with this.. https://www.youtube.com/watch?v=JWdWCtLMoU0 https://www.youtube.com/watch?v=JWdWCtLMoU0
- JanSt 6y agoFor those downvoting: that‘s u/DeepFuckingValue. He got laughed off by WSB for a year and is now making millions every day. Turned 50k to 48 million as of today.
- Macha 6y agoIf he sells prior to to the fall, that is
- jordanthoms 6y agoHe already cashed out $14M today, so that's a 280x locked in.
- bitwalker 6y agoThey already cashed out $13MM, and the remaining stock were bought at like $14/share. Even if it crashes, they still called this thing like a year out and got rich off of it.
- ta1234567890 6y agoThis is a great example of how the stock market is not about fundamentals, just like Bitcoin, it’s all about popularity and perception. In the end, people don’t care if the “stock is really worth” the price, they only care if themselves or someone else are willing to pay the price, nothing else really matters.
- wesammikhail 6y agoYou´re right in the short term. But in the long term the hope is that things average out and true value emerges as a function of countless transactions over years and years. Markets are a value ascribing heuristic machine. There is nothing about them that can deterministically point to objective value. However, the idea is that over a longer period of time, an approximation of true value emerges though wisdom of the crowd.
- AznHisoka 6y agoBut what if retail investors start to make up a larger % of investors? Then the dominant philosophy is hype, popularity and trying to sell to a greater fool. This is already happening: retail investors are growing in number. Originally, when institutions were the major players, stock prices followed fundamentals because most ppl cared about the revenue, earnings and cash flow. But what happens when the demographics change?
- Infinitesimus 6y agoHow confident are you that they followed fundamentals in any original setting? "Fundamentals" is just a collection of metrics and patterns a certain class of investor believes in. Usually those with most money and thus, power. I think you have a rosier view of what drives most of our markets than what happens in reality. Look at the dot com bubbles. Look at how HFT firms make money by exploiting the tiniest of pricing discrepancies and leveraging them heavily. Or perhaps "analyst reports" that can make or break a stock because one person believes something and we give them a megaphone. We switched focuse from present earnings to forward looking revenue. We have stock buybacks. We applied large multiples to financially unsustainable businesses because "maybe one day they can monetize these millions of users with Ads". etc. etc. The GFC was a game of trying to sell to the greater fool and involved intentional manipulation at the highest levels. It seems the system has been has always had these holes and it was "ok" until regular folks began to identify and act on these opportunities. We likely wouldn't be having this conversation if another large hedge fund was making the play retail investors are today. We'd read articles talking about the public battle of the billions. Reminds me of anytime a govt entity creates & exploits a backdoor and is surprised when other actors use the same door for their own activities.
- MrStonedOne 6y ago> and I don’t think the answer to today’s many ills is to empower poor people to bankrupt themselves with margin accounts and derivatives. I love the double speak wrt margin accounts. They want to mix up naked margin accounts where your broker gives you a loan of money to trade with, with the types of margin accounts used by WSB peeps, where the margin is only to cover the 2 day settlement window or the time it takes a deposit to transfer, ie: covered margins. My counter point: I don’t think the answer to today’s many ills is to parentalise retail investors with a holier than thou attitude that is driving half of the spite from these investors. The soundbite is that they have to protect the poor whittle retail investor from scam stocks, but the effect is and will always be to lock off higher gain opportunities to institutional investors and away from poorer investors. Don't buy it.
- zaptheimpaler 6y agoYES. Not enough people understand this. Normies love to take a shit from on high on WSB, thinking they are a bunch of retards about to lose their money, but anyone who goes a little bit deeper than the surface can see its a very, very powerful resource to learn how to trade and how markets really work. Of course if you only see WSB as a stock pumping forum and throw your money into whatever ticker is mentioned, you are at the mercy of fortune. But the ones who do use WSB productively to learn can make enormous returns previously reserved only for hedge funds. The normies only see the news stories about the first kind of user who gambled and lost, clamor for even MORE regulation, and soon that pathetic 7% annual return on index funds will be even lower as you close off more and more opportunities. The VCs and sophisticated investors will gain even more from further asymmetric opportunities and the wealth inequality will widen. Ultimately protecting those who are at poor at investing from their own incompetence also means locking out those who are good at it and only cements inequality further. Every reduction in risk means a reduction in reward.
- jariel 6y agoSadly, those piling on are much more likely to have their shirts lost than the short sellers who will take a loss and move on. When it crashes, it will be the RobinHooders left holding the bag and many of them stand to lose a lot to make a point, possibly much more than they thought. I'm not happy that Musk is getting in on this, egging on crowds to take risks that might have material risks on their lives. He stands to lose nothing. Finally - nobody seems to be talking about 'Game Stop'. Their CEO/CFO in reality must be soiling their pants under this kind of stress, nobody wants to be the pinata. If the kids want to be smart, they can act conscientiously and organize a fund to structure initiatives they deem worthy. But then they have to face the reality that 85% of most of business is fairly 'reality driven'. Weirdly - the most rational thing for executives to do, at this very moment - is to sell all of their shares to the mob. 'Now you own it'.
- deleted 6y ago[deleted]
- m3kw9 6y agoWhen people are risking and betting their money like casinos for 2x-10x gains. I’m not sure if any of that are in peoples thoughts when people trade $GME. The bottom line is always $$. The “Rage” is a good story to sell to buyers
- Exuma 6y agoGameStonks!
- cblconfederate 6y agoAny chance that Gamestop Inc will take advantage of the situation to acquire some more profitable business?
- mancerayder 6y agoThe part that's understated is that the short sellers engage in their own broadcasting - and no one ever REALLY knows whether to trust them. Citron Research and Muddy Waters and these others post, places like CNBC re-tweet, Bloomberg mentions it, etc. And that has a predictable effect, or an effect that's a self-fulfilling prophecy. I don't know if the David and Goliath story that played out here (if it is even really that) is that of longs banding together against shorts with greater aggregate cash and causing the squeeze, but rather a social platform having more social influence of information transfer than the traditional short broadcast mediums, and causing the squeeze. Maybe that's the interesting story here of 2021 that makes it a unique twist. A 'democratized' medium of information exchange causing random people to organize in new ways.
- cbozeman 6y agoIt wasn't David vs. Goliath. CNBC, Financial Times, WSJ, etc. can't tell you what it really was, because they're beholden to all these Wall Street types. They don't get stories unless their relationships are cordial. This was arrogant idiot billionaires vs. autistic retards of the Internet, and the arrogant billionaires in this case (Melvin Capital) had the chance to walk away when they got their $2.75 billion capital injection. They could have closed their position out and taken a relatively moderate loss compared to the total destruction of the fund that they're going to be facing in two days. The reason no one on CNBC is framing it that way, is because while Melvin Capital is the face of the short sellers, a lot of people piled on after Melvin Capital, but no one else piled on with the level of idiocy they did. So if you actually call it like it is, and remind everyone that a 139% short on a company is literally the most fucking retarded thing in finance ever, then you incur the wrath of a lot of wealthy people who are pieces of shit and will use their money as weapon. The problem is, the arrogant idiot billionaires have been assfucking not only the American people, but a good portion of the world for so long, that they're not used to someone spitting in their face, so they doubled-down. Unfortunately for them, they forgot that when you go up against the Internet as a collective, you always... always lose. No one fights the Internet and wins. And they're going to learn that this Friday.
- joseph_grobbles 6y ago
- u678u 6y agoI like his point about the shorting hedge fund in "The Big Short" were the heroes but now they're the baddies.
- gaha 6y agoI think if you really want to understand what is going on you actually have to read the DD "due diligence" and not just look at the funny memes. I found [1] might be a good starting point. I'm not that into finance stuff, but the idea of a short squeeze still happening at the end of this week definetly seems interesting. It could be triggered by all the call options expiring on Friday, which will have to be covered by then. If that increases the price even more, I guess the short sellers will have to cut there losses and buy back stock, which supposably still might be sold short over 100%. That's at least how I understood it and I have no clue if that might actually work. Of course there is a huge amount of people buying into GME just beacuse it is fun, memes, or whatever. But the idea behind all that definelty seems like an interesting bet. [1] https://www.reddit.com/r/wallstreetbets/comments/l528pz/gme_endgame_part_3_a_new_opponent_enters_the_ring/ https://www.reddit.com/r/wallstreetbets/comments/l528pz/gme_...
- clxxx 6y agoThe way I understood it, is that its a combination of a short squeeze and gamma squeeze that could potentially bring it way up and then have it plummet down. This only works is if the hedge funds have!’t already liquidated their short positions (as the media says they have) and it’s a bluff. Seeing as its down aftermarket, it may have happened already but no one really knows. Seeing as WSB is down, found this[1] to be a pretty informative breakdown into all this. [1] https://youtu.be/J-CHwy1BdZg https://youtu.be/J-CHwy1BdZg
- hehehaha 6y agoNo. As we approach Friday there will be greater selling pressure from all the weekly call buyers trying to cash out. This is because most retails who bought these options do not want to exercise the option to purchase. So what happens when millions of people smash the sell button on Friday? Most likely sell off starts tomorrow toward closing bell. By the way, the move we saw today was not squeeze driven. It was entirely driven by speculation craze. They’re not squeezing anyone but each other.
- mancerayder 6y agoToday alone: /r/wallstreetbets goes private GME plunges after hours Politicians tweet attacking Wall Street (https://www.businessinsider.com/gamestop-warren-aoc-slam-wall-street-market-like-a-casino-2021-1 https://www.businessinsider.com/gamestop-warren-aoc-slam-wal... ) and referencing retail. Hilarious comments on a now-godlike video of a guy who made a long analysis of GME in July. https://www.youtube.com/watch?v=GZTr1-Gp74U&feature=youtu.be https://www.youtube.com/watch?v=GZTr1-Gp74U&feature=youtu.be Much discussion on the topic ensures, on HN and elsewhere.
- deleted 6y ago[deleted]
- Guthur 6y agoI think we're all reading way too much into this. A couple of weeks ago I stumbled across some youtube or whatever that made me aware that Michael Burry was long in GameStop and I thought that was quite interesting. I don't normal follow much stock/fund news or current affairs and so I'm sure I'd be one of many that stumbled across this. I then think games are all something everyone can relate to and feel they understand and have a high degree of confidence in. Covid lockdowns mean that quite a few individuals have been spending less and may have some disposable income and so a sort of fall the leader lemmings investment run happened and then generates the hype and brings more a'la bitcoin a year or two ago.
- wolverine876 6y agoHow does this differ from other populist manipulation via social media? We've seen this technique used repeatedly in many domains. IMHO, it looks obviously the same in many ways. It's very effective and we should have anticipated that it would be used to move markets. I expect people on HN to recognize it. The question is, what will we do about it? It's tearing society apart and now it looks to damage our economy too. It is well documented that authoritarian governments, including Russia and China, have invested heavily in these techniques. I don't know the source of the GameStop bubble, but if Russia/China didn't see the potential to attack U.S. society and financial markets before, they see it now and will use it. The question is, what will we do? How do we maintain an open society, which is essential, and protect against this manipulation? I think an essential part of the solution is the power of critical thinking and reason, the very foundations of the Enlightenment, and that the well-educated (not only them, but definitely them) have to take the lead in applying those skills, and start a social media movement in that direction. The people reading this should be leaders; unfortunately, I see them again and again allowing themselves to participate in mob psychology. The response to these events is particularly chilling. Where is the forum of intellect, knowledge and facts? Almost everything I see is misinformation and conspiracy theories.
- noncoml 6y ago> How does this differ than other populist manipulation via social media? We've seen this technique used repeatedly in many domains. IMHO, it looks obviously the same in many ways. Are you sure you are up to date with what happened? My understanding, and in layman's terms, is that a hedge fund shorted more GME stocks than they are available. Redditors noticed and correctly thought that if they buy all the stocks available, when the shorts expire and the hedge funds will be forced to buy, they(redditors) can dictate the price. They just beat them at their own game and rules. Want a fix? Make shorting illegal.
- germinalphrase 6y agoHow did they notice that the hedge fund had overextended their short position by so much? Is such information part of some required reporting?
- noncoml 6y agoThere are 100 cows. A hedge-fund believes that the milk consumption will go to zero, so they borrow the 100 cows for one month and sell them for $1 each. Then they borrow them again, and sell them once more for 90c. Certain that they will worth $0 at the end of the month A Redditor notices this. She knows that in a month's time, the hedge-fund will have to buy 200 cows, and there are only 100 available. Her plan is simple. Buy all 100 cows, and at the end of the month, when the hedge fund will have to buy the cows back(twice), she will be able to dictate the price. Hedge-fund cries foul. Doesn't like being beaten in it's own game. Milk consumption doesn't even matter.
- wolverine876 6y agoCan you provide some factual basis for these claims? We can type out claims without foundation endlessly; the Internet demonstrates that well; what we need is real knowledge and facts.
- astrange 6y agoAre there any claims in that post?
- wolverine876 6y agoI'm not making claims, if that's what you mean. The burden of proof is on the person I was replying to.
- deleted 6y ago[deleted]
- stale2002 6y agoThere is no burden of proof on anyone. The person was simply explaining a concept, known as a short squeeze. A short squeeze is a well known financial concept. It is not a claim. It is a concept.
- wolverine876 6y agoThere are so many assumptions in this narrative that have no foundation. (Neither repetition and emotion are signals of truth; the inflammation and use of those things is a good signal that some manipulation is going on and that facts are lacking.) * The 'little guy' is powering this movement. We don't know who is leading it and who is pushing it. We do know that social media is often used for mass manipulation, leading large numbers into highly delusional, angry territory. * The intention is retribution: We don't know who is pushing this or why. * The 'little guy' will benefit: Investment activities with no economic benefit will lose money, in a functioning market. The 'little guys' are the ones who most need an increase in economic activity and suffer most from the economic loss, especially right now. * Markets are gambling: Financial markets serve an economic benefit to the public; otherwise they have no purpose. Market activity that has no economic benefit wastes precious resources. It denies resources to the people who are most productive to them,and gives them to the unproductive and sometimes to the corrupt, empowering them. * This angry mob is driving GameStop's securities prices: Do we have evidence that it's not others? * Regulations are to control the 'little guy': Regulations protect everyone from fraud and stabilize our markets. Not all regulations are well-intended or perfect, but an unregulated market is not realistic or desirable. * There is a 'little guy' and 'big guy': These are just arbitrary divisions with no definition, and they may have nothing to so with the situation. Whenever something goes wrong, there are always people who will try to gain power buy inflaming a mob and pointing them toward a target. In the past, it was often religion that was used. We know this technique is often used on social media, to great effect. What I see is an angry mob. I wouldn't treat it as anything else. Edit: Looking at past angry mobs and financial bubbles, it's the mob that suffers. Someone else will make money off of them.
- deleted 6y ago[deleted]
- rory 6y agoWhere is the anger? On social media I see mostly people who sort of gleefully think the chaos is funny.
- mckirk 6y agoSome interesting observations: In the last few hours, the WSB Discord was banned for 'hate speech' and the WSB subreddit had to close for a while because of a massive influx of bots. To me, that does not really seem like an indication of the short squeeze being over and the big players being safe out of the game. And yet, the prevalent opinion here seems to be that retail investors can only lose from here on out... what am I missing?
- vga805 6y agoThis. This is what's been boggling my mind.
- crb002 6y agoReddit "wins" by buying enough to take GameStop private so they can exit in an orderly fashion 100% screwing the shorters and not letting Citadel front run the exist. I think the GameStop CEO can offer up a class "R" share that retail investors will be happy with.
- chovybizzass 6y agoYou gotta take the power back.
- symbols123 6y agoI think most of today's websites and social networks use fancy text. Copying and pasting fancy text into the web is even easier. Here http://symbols123.com/ http://symbols123.com/
- cnxsoft 6y agoMany people will lose money is this little game. The hedge funds deserve to lose since they took too many risks, but I'm afraid they'll be bailed out. GameStop is bleeding money, and if the stock value is really closer to $3, then once this is out of the news, price will fall down to under $10 pretty quickly. Many smaller investors will lose out in the end.
- lambda_dn 6y agoIf people think the big players in wall street are sitting back thinking, "oh no, a bunch of retail traders defeated us, lets pack our bags and go home" then its pure naivety. They are already 3 steps ahead and will extract most of the gains and benefit from the losses of these retail traders over the next few weeks. They have the resources to destroy this hubris and make $$$
- isatty 6y agoI'm honestly dissapointed by the amount of wall street bootlickers over here on HN. You of all people should know that unlike in the past, information is freely available. Hedge funds have some amazing smart people who can think so hard they float, but they're limited.
- DataSceince123 6y agoThis short squeeze is tightly correlated with online anti-semitism, as hateful individuals see this as an opportunity to stick it to wallstreet, where the hedge fund and banking industry are highly over represented with the jewish community. If you dont believe me go look on 4chan, these forums need to be shut down immediately to stop this hate and market manipulation
- deleted 6y ago[deleted]
- JadeNB 6y agoReminder that you can sign up to receive Levine's wonderful column Money stuff by e-mail, with no Bloomberg subscription required: https://www.bloomberg.com/account/newsletters/money-stuff https://www.bloomberg.com/account/newsletters/money-stuff
- dkdk8283 6y agoThe real issue is WSB has been temporarily shut. We are on our way to full blown communism.
- momirlan 6y agoSo what is the end game. Coz end it will
- noisy_boy 6y agoNice unexpected windfall for gamestop shareholders who just had the stock and had nothing to do with this madness.
- kerng 6y agoQuestion: Can GameStop actually turn this into cash and maybe buy a game studio to be long term profitable?
- stjohnswarts 6y agoI wonder if anyone has used AI to figure out how many of the people pumping this are actually not real and mults (x10 or 20) of the same few people and others are helping them attain their market dreams, when they sell very soon. Just a hunch
- GizmoSwan 6y agoThere is one thing not being discussed anywhere that I would like to see discussed. Sometime in Sept 2020 GME had purchased sum of shares that had in effecting had reduced the number of shares outstanding or the float and that purchase likely to have created the imbalance where the are more short shares than existing shares in my opinion. I can not believe that the whole scheme has not been by design. I recall seeing GME pump starting right about then in Sept. I am also convinced that the shorting hedge funds could have been playing it on the up side via options. They could have sold puts; bought calls. There are a lot of dark pools that are not transparent to know who is doing what. It is pretty naive to believe that all these hedge funds dabbling in these type of games are the sheep and not the wolves. Both the new shareholders who are now the insiders and the hedge funds are likely to be aware of the small float that would kick started the short covering pyramiding scheme and reddit would have provided the pawns to spawn it really fast. Don't be naive. They fundies have been hitting all the high volatility stocks with small floats/ high short ratios.
- fnord77 6y agoI think a lot of people commenting here have not read the comments on WSB. People there know it will crash. They're buying call options to force the market makers to buy to delta hedge, thus driving up the price and making actual shares scarce. The point is to screw over the hedge fund shorting gamestop. nothing more, nothing less