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  1. ISO #1

    Cool Just Gamer Things

    -Billionaires placed bets against GameStop’s success.
    -Redditors jumped in to save the struggling game retailer with a market rally by creating demand for GameStop.
    -Success was received shortly after, with GameStop stock jumping by a massive 822%.
    Last edited by OzyWho; January 29th, 2021 at 01:08 AM.

  2. ISO #2

  3. ISO #3

  4. ISO #4

    Re: Just Gamer Things

    The actual scenario is a bit funnier, as I understand it (I don’t understand it)

    Hedge funds operate by borrowing stock from other people. You borrow their stock at $20, and if the stock rises, you sell it at $30, and when the stock goes back down, you buy it back at $20. The hedge fund pockets the $10. As I understand it, that’s how hedge funds work, highly simplified. If the stock doesn’t go down before the hedge fund runs out of time to buy the stock back, they lose money.

    In the case of GameStop, a hedge fund borrowed more stocks for game stop than technically existed, or something, then sold them. A group of people realized that they had to buy a bunch of stocks for gamestop, so they bought the stocks, knowing the stocks were about to go up. Since the fund will be forced to eventually buy the stocks from them, the higher the stock goes the better.

    Now GameStop is up like $400. It’s allegedly only going to go higher. The hedge fund is now down 70 billion USD and has filed for bankruptcy.
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  5. ISO #5

    Re: Just Gamer Things

    Quote Originally Posted by Stealthbomber16 View Post
    The actual scenario is a bit funnier, as I understand it (I don’t understand it)

    Hedge funds operate by borrowing stock from other people. You borrow their stock at $20, and if the stock rises, you sell it at $30, and when the stock goes back down, you buy it back at $20. The hedge fund pockets the $10. As I understand it, that’s how hedge funds work, highly simplified. If the stock doesn’t go down before the hedge fund runs out of time to buy the stock back, they lose money.

    In the case of GameStop, a hedge fund borrowed more stocks for game stop than technically existed, or something, then sold them. A group of people realized that they had to buy a bunch of stocks for gamestop, so they bought the stocks, knowing the stocks were about to go up. Since the fund will be forced to eventually buy the stocks from them, the higher the stock goes the better.

    Now GameStop is up like $400. It’s allegedly only going to go higher. The hedge fund is now down 70 billion USD and has filed for bankruptcy.
    What you are describing is the process of 'shorting stock' which anyone can do. I do it through E-trade with an account that has options trading. There are very man forms of options trading which give great returns.

    What Redditors did was called a 'short squeeze.' Wall-Street had shorted 130% of the stock so people knew they had to buy that back. They inflated the price and then profited as the stocks were forced to be bought back.

    For trading platforms shutting down trading most of them are actually owned by hedge funds that use the trading data to profit. RobinHood is a good example. Many people have speculated class action lawsuits and such but at least when I read the ToS for RobinHood they can do whatever they want to include forcing people to sell positions against their will.

    What I liked about this situation is that the small guy got to fuck wallstreet hard but also its blatantly obvious now that we do not live in a free market. As soon as big money looses they shut shit down hard.

    What I dislike is they are framing groups like 'wallstreet bets' as doing illegal market manipulation which is exactly what they have been doing for years and pushing for legal action to be taken against them; just because they lost for once.

  6. ISO #6

  7. ISO #7

  8. ISO #8

    Re: Just Gamer Things

    Yeah, I read what SB16 and Helz said - and I still understand just about crap. I'd ask for the "idiot" version, but I'm afraid that they explained it as simply as can.

    Quote Originally Posted by Stealthbomber16 View Post
    In the case of GameStop, a hedge fund borrowed more stocks for game stop than technically existed, or something, then sold them. A group of people realized that they had to buy a bunch of stocks for gamestop, so they bought the stocks, knowing the stocks were about to go up. Since the fund will be forced to eventually buy the stocks from them, the higher the stock goes the better.
    I don't understand. So the hedge fund sold their GS stocks, which bombed the stock price, Redditors bought GS stocks, which risen the GS stock price, and the hedge funds had to buy the previously sold stocks back at a higher cost. Does that about sum it up?
    If so, then question: Why were the hedge funds forced to buy the stocks back?

    Quote Originally Posted by Helz View Post
    What Redditors did was called a 'short squeeze.' Wall-Street had shorted 130% of the stock so people knew they had to buy that back. They inflated the price and then profited as the stocks were forced to be bought back.
    Can you explain this like I'm stupid?


    This is like watching the TV Series "Billions" all over again, where I understood nothing.

  9. ISO #9

    Re: Just Gamer Things

    Copy and pasted from somewhere else.



    Over the past year, hedge fund supervillains have made money by selling shares of Gamestop they don't actually own - they've just borrowed them. Short selling. If they sell enough they can drive the price down so far that when they eventually need to return the shares they borrowed, they can get them cheap. It's free money. They throw a couple hundred mil at this, chill in their offices watching live video feeds of homeless people being exsanguinated on the hoods of their vintage sports cars, write up an investor report, and call it a fiscal year.

    They borrowed and sold a record amount - they sold more shares, in fact, than are actually traded, far more than Gamestop's float. This shouldn't have been allowed to happen and probably means they were selling shares they never even bothered to borrow - naked shorts. (Where were you on that one, SEC?) Essentially, they were simultaneously betting on Gamestop going bankrupt and doing their best to drive them into bankruptcy. It's a good tactic when you need to find a way to pay for your old wife's alimony and your new wife's poolboy.

    But it presents an opportunity for the savvy degenerate gambler. Because these shares eventually need to be returned - after all, it does cost these funds money to borrow a share. And the higher the price goes, the more unstable it becomes, the more it costs to borrow. This means that at some point, they need to buy back those borrowed shares they sold.

    All 140% of them.

    So our visionary gambler, if they were to invest in Gamestop, would have a guaranteed buyer for their shares. And if millions of fellow degenerates were to ask their mother for an advance on their allowance so that they could buy Gamestop, too -

    And then, if a famous e-commerce CEO were to buy a ton of Gamestop shares, join the board, and announce they're going to be a big company again by doing internet things and esports and radical new stuff -

    And then, if a truly insane amount of call option buying - don't worry about it if you don't know - were to force market makers to rapidly buy up a ton of shares to fulfill all those options they sold in a wild phenomenon called a gamma squeeze that's basically the stock equivalent of an atmospheric microburst, suddenly spiking Gamestop's price to unheard-of levels -

    - hang on, I need a new pair of pants -

    Well then you'd have the perfect conditions for a short squeeze. The price is insanely high. There's a whole street of funds with deep pockets who absolutely must find a way to buy all those insanely expensive shares. And by buying them - 140% of the amount traded! - they're going to drive up the price even more. So one day, a fund will run out of money paying interest on their borrowed shares, and they'll have to drive GME's price through the roof buying enough shares to give them back. And as the price climbs, other short holders are going to be required to cover their borrowed shares by buying them. It's a runaway reaction where the more it happens, the more it happens. You know, one of those cute little phenomena like virus spread. Or nuclear bombs.

    So who are they buying from? That's right. At what price are they buying? Well, that depends.

    Hedge fund managers holding GME shorts would really, really like to convince GME stock holders to sell them some shares right now, before it climbs any higher, so that they can return the shares they borrowed and get out before they get steamrolled into bankrupcy. And they've got lots of tools at their disposal to do this: they can pump up other stocks to create FOMO, causing GME holders to sell their shares to go chase some shiny new meme. They can hire PR companies to astroturf these stocks on Elon Musk fan clubs and gambling forums. They can buy up shares and then, after trading hours are over, sell them in progressively cheaper tranches to drive down the stock price. They can wipe the hobo blood off their wattle and go cry on television about how they're being bullied. They can call up their investors, like Citadel, the company who processes all your orders, and tell them to stop letting people buy Gamestop while they try to drive the price down. They have, in fact, tried all of these things. But it hasn't worked - GME's price is higher than ever. It's out of control, now - there are too many people involved. There are other institutions involved, trying to extract maximum profit out of the shorts. The meme has reached critical mass.

    Now it's a classic million-player prisoner's dilemma: every GME holder has visions of selling their shares for unlimited chicken tendies and cocaine dipping sauce. Maybe they think they alone can sell, while everyone else can continue to drive the price up by holding. But if every degenerate gambler thought this way, and sold their shares, very quickly the short squeeze wouldn't happen. Short holders would buy up all the shares being sold at a painful but manageable loss, they would cover their position, and the nuke would never be detonated.

    What's a prisoner in this dilemma to do? At last, the point arrives. To avoid selling too early, the savvy degenerate gambler would wait until short interest - the amount of shares shorted out there - started to decline substantially. As long as nobody was defecting, nobody selling early, that decline in shares shorted would come with a spike in the price of the stock, as the few shares available are bought at astronomical prices. And this decline in shares shorted would distinguish this spike from gamma squeezes or regular old stock run-ups.

    Then and only then, as the nuke goes off, the stock price ascends past Alpha Centauri, and the short interest finally starts declining, the short squeeze has begun. And then it's every gambler for themself.
    Cryptonic made this sig

    Quote Originally Posted by HentaiManOfPeace View Post
    gotchu fam

    Attachment 28016

  10. ISO #10

    Re: Just Gamer Things

    Spoiler : :
    Quote Originally Posted by SuperJack View Post
    Copy and pasted from somewhere else.



    Over the past year, hedge fund supervillains have made money by selling shares of Gamestop they don't actually own - they've just borrowed them. Short selling. If they sell enough they can drive the price down so far that when they eventually need to return the shares they borrowed, they can get them cheap. It's free money. They throw a couple hundred mil at this, chill in their offices watching live video feeds of homeless people being exsanguinated on the hoods of their vintage sports cars, write up an investor report, and call it a fiscal year.

    They borrowed and sold a record amount - they sold more shares, in fact, than are actually traded, far more than Gamestop's float. This shouldn't have been allowed to happen and probably means they were selling shares they never even bothered to borrow - naked shorts. (Where were you on that one, SEC?) Essentially, they were simultaneously betting on Gamestop going bankrupt and doing their best to drive them into bankruptcy. It's a good tactic when you need to find a way to pay for your old wife's alimony and your new wife's poolboy.

    But it presents an opportunity for the savvy degenerate gambler. Because these shares eventually need to be returned - after all, it does cost these funds money to borrow a share. And the higher the price goes, the more unstable it becomes, the more it costs to borrow. This means that at some point, they need to buy back those borrowed shares they sold.

    All 140% of them.

    So our visionary gambler, if they were to invest in Gamestop, would have a guaranteed buyer for their shares. And if millions of fellow degenerates were to ask their mother for an advance on their allowance so that they could buy Gamestop, too -

    And then, if a famous e-commerce CEO were to buy a ton of Gamestop shares, join the board, and announce they're going to be a big company again by doing internet things and esports and radical new stuff -

    And then, if a truly insane amount of call option buying - don't worry about it if you don't know - were to force market makers to rapidly buy up a ton of shares to fulfill all those options they sold in a wild phenomenon called a gamma squeeze that's basically the stock equivalent of an atmospheric microburst, suddenly spiking Gamestop's price to unheard-of levels -

    - hang on, I need a new pair of pants -

    Well then you'd have the perfect conditions for a short squeeze. The price is insanely high. There's a whole street of funds with deep pockets who absolutely must find a way to buy all those insanely expensive shares. And by buying them - 140% of the amount traded! - they're going to drive up the price even more. So one day, a fund will run out of money paying interest on their borrowed shares, and they'll have to drive GME's price through the roof buying enough shares to give them back. And as the price climbs, other short holders are going to be required to cover their borrowed shares by buying them. It's a runaway reaction where the more it happens, the more it happens. You know, one of those cute little phenomena like virus spread. Or nuclear bombs.

    So who are they buying from? That's right. At what price are they buying? Well, that depends.

    Hedge fund managers holding GME shorts would really, really like to convince GME stock holders to sell them some shares right now, before it climbs any higher, so that they can return the shares they borrowed and get out before they get steamrolled into bankrupcy. And they've got lots of tools at their disposal to do this: they can pump up other stocks to create FOMO, causing GME holders to sell their shares to go chase some shiny new meme. They can hire PR companies to astroturf these stocks on Elon Musk fan clubs and gambling forums. They can buy up shares and then, after trading hours are over, sell them in progressively cheaper tranches to drive down the stock price. They can wipe the hobo blood off their wattle and go cry on television about how they're being bullied. They can call up their investors, like Citadel, the company who processes all your orders, and tell them to stop letting people buy Gamestop while they try to drive the price down. They have, in fact, tried all of these things. But it hasn't worked - GME's price is higher than ever. It's out of control, now - there are too many people involved. There are other institutions involved, trying to extract maximum profit out of the shorts. The meme has reached critical mass.

    Now it's a classic million-player prisoner's dilemma: every GME holder has visions of selling their shares for unlimited chicken tendies and cocaine dipping sauce. Maybe they think they alone can sell, while everyone else can continue to drive the price up by holding. But if every degenerate gambler thought this way, and sold their shares, very quickly the short squeeze wouldn't happen. Short holders would buy up all the shares being sold at a painful but manageable loss, they would cover their position, and the nuke would never be detonated.

    What's a prisoner in this dilemma to do? At last, the point arrives. To avoid selling too early, the savvy degenerate gambler would wait until short interest - the amount of shares shorted out there - started to decline substantially. As long as nobody was defecting, nobody selling early, that decline in shares shorted would come with a spike in the price of the stock, as the few shares available are bought at astronomical prices. And this decline in shares shorted would distinguish this spike from gamma squeezes or regular old stock run-ups.

    Then and only then, as the nuke goes off, the stock price ascends past Alpha Centauri, and the short interest finally starts declining, the short squeeze has begun. And then it's every gambler for themself.

    This was a beautiful read, thank you for it.

    The "all 140% of them" cracked me up.


    But the thoughts processes of selling more shares than exist in order to bankrupt the company so that you don't have to buy them back, and as a cherry on top - those are not even your own shares...
    That's like multiple layers of illegal, isn't it?

  11. ISO #11

    Re: Just Gamer Things

    Quote Originally Posted by OzyWho View Post
    This was a beautiful read, thank you for it.

    The "all 140% of them" cracked me up.


    But the thoughts processes of selling more shares than exist in order to bankrupt the company so that you don't have to buy them back, and as a cherry on top - those are not even your own shares...
    That's like multiple layers of illegal, isn't it?
    Not illegal. They can do it because they are rich and they made the rules. They have done it to a lot of companies.
    Cryptonic made this sig

    Quote Originally Posted by HentaiManOfPeace View Post
    gotchu fam

    Attachment 28016

  12. ISO #12

    Re: Just Gamer Things

    Quote Originally Posted by SuperJack View Post
    Can you create ToS and they be above the law? @Helz
    I honestly had no idea these platforms had the power to prevent people from buying particular stocks - forcefully selling ppl's stock, even. What else could they get away with by simply writing somewhere in their ToS "by the way we may totally fuck you over at some undetermined point in the future with no prior notice"?

    Also, I get it's largely symbolic, but did people catch google taking down 100k 1 star robin hood reviews written in the backlash of banning trades? It's weird how an unrelated company google rushes to the defense of robin hood for "review bombing". I'm not aware of any precedent for something like that. And, dare I say, it's quite a major freezepeach violation ^^.
    Quote Originally Posted by Blinkstorteddd02 View Post
    naz, he's claiming to have been at your house last night and infected you. I know u were drunk but PLEASE try as hard as you can to remember... That burning you felt the next morning when you went pee was from me, not him.

  13. ISO #13

    Re: Just Gamer Things

    could this have a lasting impact on how the stock market operates?
    Quote Originally Posted by Blinkstorteddd02 View Post
    naz, he's claiming to have been at your house last night and infected you. I know u were drunk but PLEASE try as hard as you can to remember... That burning you felt the next morning when you went pee was from me, not him.

  14. ISO #14

    Re: Just Gamer Things

    Quote Originally Posted by yzb25 View Post
    I honestly had no idea these platforms had the power to prevent people from buying particular stocks - forcefully selling ppl's stock, even. What else could they get away with by simply writing somewhere in their ToS "by the way we may totally fuck you over at some undetermined point in the future with no prior notice"?

    Also, I get it's largely symbolic, but did people catch google taking down 100k 1 star robin hood reviews written in the backlash of banning trades? It's weird how an unrelated company google rushes to the defense of robin hood for "review bombing". I'm not aware of any precedent for something like that. And, dare I say, it's quite a major freezepeach violation ^^.
    Reviews are a really corrupted. >-> Really difficult to find genuine reviews on the internet. I say ignore 5 or 1 star reviews. And focus on the 2, 3 and 4 for the best ones.
    Google your reviews to check if its been copied.
    Look back on the way back machine if needed.
    Ignore memes.
    Companies will edit, change, hide, manipulate their reviews so do not trust reviews on their own website if you can.

    And generally ToS do not override the law.
    You can stick a "Warranty void if removed" sticker onto anything, you can claim you do no refunds or crap. But none of it matters when the law is in place and no matter what they say it cant effect your warranty ore refund rights.
    Cryptonic made this sig

    Quote Originally Posted by HentaiManOfPeace View Post
    gotchu fam

    Attachment 28016

  15. ISO #15

    Re: Just Gamer Things

    Quote Originally Posted by OzyWho View Post
    This was a beautiful read, thank you for it.

    The "all 140% of them" cracked me up.


    But the thoughts processes of selling more shares than exist in order to bankrupt the company so that you don't have to buy them back, and as a cherry on top - those are not even your own shares...
    That's like multiple layers of illegal, isn't it?
    No. The same share can be shorted multiple times. The world economy actually largely operates on entities taking loans out to pay off their other loans.
    Have you ever heard the tragedy of Darth Jar Jar the wise?

  16. ISO #16

 

 

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