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> Can anyone legitimately make the claim that the massive drop in value that cut off the price rise at the knees and allowed the worst short positions to cover
by newacct583 6y ago
> Can anyone legitimately make the claim that the massive drop in value that cut off the price rise at the knees and allowed the worst short positions to cover their losses sub-$200 didn't materially harm the users?
Yes, because you'd have to prove that Robinhood volume alone caused that drop in price. Robinhood isn't that big, and GME volume was crazy on Thursday.
It's equally likely (and equally impossible to prove) that Robinhood saved their users money by preventing them from investing in a stock that was already up 500% and clearly overvalued relative to its fundamentals.
This is the part that gets me about this: even now, after the mania has passed, everyone still thinks that GME was somehow a "sure thing" investment driven by a clearly incorrect understanding of how short trading works. And even now, after the magical short call rapture that was supposed to have come on Friday never materialized, people still want to believe that it would have kept going up and up and up.
Guys, it wouldn't. It's a bubble. They pop. Everyone trying to buy at the peak was making a terrible investment decision.
- Daho0n 6y agoLet's see in a few months if it were the peak. I doubt that very much and my money is on it.
- newacct583 6y agoI say this with genuine love in my heart, and hoping dearly for you to see this more clearly: you got scammed. Those early short positions[1] are closed out, losses have been taken, GME is going to burble along for a bit as the people who scammed you exit their own positions and then it's going to crash back down to $80 or less. It is no longer a short squeeze, this is a speculative bubble sustained by people like you who were lied to about it being a short squeeze. [1] Obviously people are taking out new shorts like crazy on this stock given the bubble.
- pfortuny 6y agoAll bubbles pop, all soap becomes a bubble. Your statement is true technically. There is no way to argue with that. The 1000000-dollar question is “when”. Zerohedge (banned here) has been forecasting the pop of SPX and Nasdaq for several years now...