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The 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 an

The 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 ago
It 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
  The assumption that this is a bunch of robin hood everyday-man sorts conspiring on Reddit seems incredibly naive. The GameStop play (as with BBB, AMC, Express, etc) are classic pump and dumps, albeit with a short-squeeze magnifier (basically equal to a DDOS amplification). And if you really traced back to the origin, I highly doubt you're going to find some Joe Nobody -- you're going to find some very well financed, planned player. GameStop is a doomed enterprise in an obsolete space (selling physical copies of games), so it was incredible seeing WSB spin fantastical tales of the marvelous future ahead for it. Everyone else gets some intense FOMO that leads them to piss away their own money (you can't just buy options because options on hyper-volatile stocks price that in), and then a lot of people get burned. Everyone is running around talking about how everyone made millions from WSB tips or something, it's farce. As is always the case, a tiny number of people benefit, and a huge number of people financed their return. The whole story seems super dumb. And the SEC is likely paying very close attention. Loads of people throughout this discussion have absolutely no clue what they're talking about. What a low information crowd this is.
  - cbozeman 6y ago
    > you're going to find some very well financed, planned player. You're going to find Dr. Michael Burry. He started buying GameStop under his Scion Capital shop back in June 2020, and /u/DeepFuckingValue on Reddit / Roaring Kitty on YouTube made the case for GameStop as far back as June of 2019. EDIT: Corrected "Mr." to "Dr.". Corrected the timeline of DFV / Roaring Kitty to the correct dates.
    - mewpmewp2 6y ago
      DFV was buying GME since 2019 june though and he was making text based case long before June 2020.
      - cbozeman 6y ago
        Indeed, I got my dates wrong. Thank you for the correction!

cbozeman 6y ago

It 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
The assumption that this is a bunch of robin hood everyday-man sorts conspiring on Reddit seems incredibly naive. The GameStop play (as with BBB, AMC, Express, etc) are classic pump and dumps, albeit with a short-squeeze magnifier (basically equal to a DDOS amplification). And if you really traced back to the origin, I highly doubt you're going to find some Joe Nobody -- you're going to find some very well financed, planned player. GameStop is a doomed enterprise in an obsolete space (selling physical copies of games), so it was incredible seeing WSB spin fantastical tales of the marvelous future ahead for it. Everyone else gets some intense FOMO that leads them to piss away their own money (you can't just buy options because options on hyper-volatile stocks price that in), and then a lot of people get burned. Everyone is running around talking about how everyone made millions from WSB tips or something, it's farce. As is always the case, a tiny number of people benefit, and a huge number of people financed their return. The whole story seems super dumb. And the SEC is likely paying very close attention. Loads of people throughout this discussion have absolutely no clue what they're talking about. What a low information crowd this is.
- cbozeman 6y ago
  > you're going to find some very well financed, planned player. You're going to find Dr. Michael Burry. He started buying GameStop under his Scion Capital shop back in June 2020, and /u/DeepFuckingValue on Reddit / Roaring Kitty on YouTube made the case for GameStop as far back as June of 2019. EDIT: Corrected "Mr." to "Dr.". Corrected the timeline of DFV / Roaring Kitty to the correct dates.
  - mewpmewp2 6y ago
    DFV was buying GME since 2019 june though and he was making text based case long before June 2020.
    - cbozeman 6y ago
      Indeed, I got my dates wrong. Thank you for the correction!