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> The thing is, I don't think the winners are mostly getting rich off the backs of short sellers. I don't think your definition of winners applies here, becaus
by rualca 6y ago
> The thing is, I don't think the winners are mostly getting rich off the backs of short sellers.
I don't think your definition of winners applies here, because for some this isn't really about making a quick buck. There's a whole class of WSB-based stock purchasers who buy/bought stock in protest, and don't care at all if they lose 200$-2000$ in this as long as they see hedge funds hemorrhaging cash.
For them, winning is seeing the likes of Melvin Capital wasting half of their cash on a failed short.
https://edition.cnn.com/2021/01/31/investing/melvin-capital-reddit-gamestop/index.html https://edition.cnn.com/2021/01/31/investing/melvin-capital-...
And that's something they don't mind paying 2000$ to see.
- vkou 6y ago> I don't think your definition of winners applies here, because for some this isn't really about making a quick buck. There's a whole class of WSB-based stock purchasers who buy/bought stock in protest, and don't care at all if they lose 200$-2000$ in this as long as they see hedge funds hemorrhaging cash. That class of WSB should open their eyes and realize that hedge funds on the long side of the trades aren't hemmorhaging cash. Those funds are happily taking WSB cash, and laughing all the way to the bank. As a form of social protest, giving your money to a hedge fund seems to be an odd one. For some mysterious reason, though, the WSB narrative is that all the hedge funds are on the short side of these trades. Again, no proof is given for this statement, it's just a magical incantation that the tribe keeps repeating. ... Or, it's something that people hoping to get rich from a pump and dump keep repeating, so that bigger fools drive the stock price up for them, and they can cash out. If I were one of those people, that's what I'd be doing.