4 ms·
And for every hedge fund that was short GME, there were several who were long and cashed in. Not exactly a victory for the 99%. It seems to me the "we'll all g
by roywiggins 6y ago
And for every hedge fund that was short GME, there were several who were long and cashed in. Not exactly a victory for the 99%.
It seems to me the "we'll all get rich sticking it to the hedge funds" stuff was some combination of sincere belief and pure window-dressing to get more people to buy into the pump. And for the people left holding the bag, a way to feel better about their losses.
- stouset 6y ago“We’ll all get rich sticking it to the hedge funds” was comically naïve given that the entire strategy was to hold no matter what and never sell. Every time it would go higher the narrative just adjusted the target price upwards. “$1000 is not a meme” et al. As if the price would go up to infinity dollars. If you don’t have an actual exit strategy—especially on a time-dependent play like a short squeeze—you’re the sucker who’s losing their investment.
- ilrwbwrkhv 6y agoI mean if Robinhood didn't do illegal shit like stopping retail from buying the price would have gone a lot higher.
- dragontamer 6y agoMaybe you shouldn't get your news from reddit. Hint: T+2 settlement in a time where a stock price is highly volatile means that brokerages are forced to pony up more collateral. Robinhood is such a bad brokerage, it didn't have the funds to do so and was cut out by the clearinghouses. Selling of GME would roll back the amount held by Robinhood, lowering collateral.
- deleted 6y ago[deleted]
- chewz 6y ago> was comically naïve given that the entire strategy was to hold no matter what and never sell. That was ingenious. Since tulip mania mob chased penny stocks in pump and dump schemes in order to make money. Giving class war narrative to the mob was revolutionary.
- deleted 6y ago[deleted]
- jrochkind1 6y agoYeah it's super sketchy -- I wonder how many of the people encouraging the "class war" thinking had a stake in it, were long on gme -- including possibly institutional investors. (What, like institutional investors never use social media to manipulate markets? Legal or not? Now you see why it's not crazy for the FTC to investigate wsb, right?) But I think there is still a story here about why the "class war" narrative was so effective and popular... there is clearly an appetite for some class war... that can be used to manipulate people, or...?
- geitir 6y agoWhen is there not an appetite for blaming others not in the exact same circumstance as you?
- jrochkind1 6y agoI suspect you are younger than me, if you think the climate has always been like this in the USA.
- rtx 6y agoTrump already did it, next round would be more interesting.
- zests 6y agoThe parts of wall street that lost were part of the 1%. The part of wall street that won were the funds that managed teachers' retirement accounts. This is the narrative. It doesn't matter which narrative makes the most sense or is the most correct, it only matters which narrative spreads the most and the quickest. The narrative that wins will always be the victory narrative.
- dragontamer 6y ago> And for every hedge fund that was short GME, there were several who were long and cashed in. Not exactly a victory for the 99%. Mudrick Capital Management shorted GME at the peak and made at least $200 Million from the whole event. Mudrick Capital also benefited from AMC, to the tune of hundreds-of-millions. They didn't even punish the shorts: a lot of shorts sold at $300 or $400 and made bank.