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There is no revolution in my opinion. It is the time tested pump and dump OR dump and pump and the street is behind it all in my opinion. Sometime in Sept 2020
by GizmoSwan 6y ago
There is no revolution in my opinion. It is the time tested pump and dump OR dump and pump and the street is behind it all in my opinion.
Sometime in Sept 2020 GME had purchased sum of shares reducing float or outstanding shares. Such purchases would create the current imbalance and the war between various parties involved.
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 and each party can have multiple arms. It is pretty naive to believe that all these hedge funds dabbling in these type of games are the sheep and not the wolves and have been silent through it all .
Both the new shareholders who are now the insiders and the hedge funds are likely to be aware of the small float that would have kick started the short covering pyramiding scheme and reddit would have provided the pawns to spawn it really fast by pumping the forums.
Don't be naive. They fundies have been hitting all the high volatility stocks with small floats + high short ratios.
- metalliqaz 6y agoThe biggest tragedy of this is the mistaken belief that a bunch of little guys is actually profiting off Wall Street. The big boys are mostly the ones playing this game, and the little guys are mostly just chasing the ball around.
- GizmoSwan 6y agoThe little guys are also playing the pyramiding scheme by buying the OTM calls and puts like the big boys and cooperate with their schemes. That is the only difference. The OTM options are now low hanging fruits that can be grabbed with pump and dump given sufficient/willing and educated audience.
- kristopolous 6y agoThe HFTs are making a killing from the volitility. Slippage like this is their dream. It's the best possible scenario for HFT
- GizmoSwan 6y agoyup. They don't let it go below resistance. Same deal with Tesla I think.
- uberdru 6y agoSpot on. The hedge funds were just that, hedged. Likely with deeply OOTM calls. Even if the redditors had been organic, the sentiment was immediately picked up, amplified, and arbitraged.
- GizmoSwan 6y agoExactly. Hedge funds, hedge.