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> People blame Keith Gill and /r/wallstreetbets for causing the stock price to diverge from its rational value, but as I see it, it was the shorts that did that
by thunky 2y ago
> People blame Keith Gill and /r/wallstreetbets for causing the stock price to diverge from its rational value, but as I see it, it was the shorts that did that
So you think GME was rationally valued and the shorts were wrong?
- slowmovintarget 2y agoThe shorts were trying to deliberately drive GameStop into the ground so they could cash out. It was an indirect form of the private equity shred and dump move.
- thunky 2y agoThat's not what it says here: https://en.m.wikipedia.org/wiki/GameStop_short_squeeze https://en.m.wikipedia.org/wiki/GameStop_short_squeeze This says that there was a massive short interest in GME because the company was circling the drain. No mention of private equity manipulation that I can find.
- elihu 2y agoNo and yes. GME was overpriced for a bit, but I think that was just a natural consequence of the shorts getting too greedy and putting themselves into an untenable position. Basically, the shorts told the market "please take all my money away" and the market said "okay, no problem".