Originally Posted by philfree:
I'm wondering if there's a handful of leaders of this cabal. Pied Pipers so to speak with lot's of cash to work with who are stringing this along. This is supposed to be the little guys doing this but I have my doubts it's just them.
I don't think so, although you could maybe argue the guy who did the calls that are now worth 40 million or whatever certainly helped stoked the fires. But smart people with alot of money have surely cashed in big time here riding the wave. WSB isn't big enough to drive the price up 500 bucks in a week. That requires huge amounts of money and trades.
The fact is that this isn't the first stock that is over valued and a bunch of people just decided it should be worth that much. Tesla is up 600 bucks over what, six months? With no new products and they actually missed their most recent projections. Doesn't matter because of the people that just randomly decided it was cool to own tesla. FOMO and hype are the new get rich quick things in the market place, and gamestop won't be the last. [Reply]
Originally Posted by DaFace:
We're talking about thousands of people, so concluding what "they" want is pretty tough. The subreddit itself is all about taking huge risks in hopes of huge payouts, so that's probably where it started - force the shorts to sell so that the price goes up and everyone can dump at the top.
Somewhere along the way, they realized that doing so would cause huge damage to a couple of hedge funds, and many believe such organizations to be at the root cause of a lot of economic problems, so some probably hopped on in hopes of sticking it to the man.
Then it got momentum, and you have random Joe's who don't really have any idea what they're doing but jumped on because they see people posting how much money they've "made." Eventually, the bottom is going to drop out, and it'll likely be these types that will get screwed.
So from my perspective, it's a little of everything.
This was never going to end well for the vast majority of retail traders in this situation. [Reply]
Reddit crashes when you try to load WSB. I'm guessing people are freaking the fuck out right now. The aftermath of this is going to be something to see. [Reply]
Originally Posted by DaFace:
The irony is that there are probably hedge funds who shorted the shit out of it yesterday and are going to make a fortune on this.
I don't fully get the concept of shorting, but from what I understand if they survived that giant wave going up, then yeah they probably are rolling this very second.
Somebody, somewhere just lost everything they ever had and planned to have though. Damn [Reply]
Originally Posted by tatorhog:
I don't fully get the concept of shorting, but from what I understand if they survived that giant wave going up, then yeah they probably are rolling this very second.
Somebody, somewhere just lost everything they ever had and planned to have though. Damn
This was always a gamble and anyone who put their life savings in is a dumb ass. Exposed how the system is rigged though. [Reply]
Originally Posted by tatorhog:
I don't fully get the concept of shorting, but from what I understand if they survived that giant wave going up, then yeah they probably are rolling this very second.
Somebody, somewhere just lost everything they ever had and planned to have though. Damn
The mechanism is complicated, but the function is pretty simple. Shorting basically works the opposite of a normal buy. If the price goes up, your value goes down, and vice versa.
If someone was already shorting the stock at $15 or whatever, they're still hurting right now (and probably will be for a while). But if someone got in at $400 yesterday, they're going to be rolling soon. [Reply]
Originally Posted by kcpasco:
This was always a gamble and anyone who put their life savings in is a dumb ass. Exposed how the system is rigged though.
You know someone did when they saw that stock flying up. Hell all of those #stonks seem to have cratered. BB, AMC, NOK...they are all way way down. [Reply]
Originally Posted by tatorhog:
I don't fully get the concept of shorting, but from what I understand if they survived that giant wave going up, then yeah they probably are rolling this very second.
Somebody, somewhere just lost everything they ever had and planned to have though. Damn
You're borrowing shares from someone with the promise to give them back at a set later date. You borrow them and sell them at the higher price hoping the value will drop so you can buy them back at a lower price and return them to the original owner.
In simplistic terms, say shares of xyz are going for $10 a share. You borrow 100 of them and sell them at $10 a share making $1,000. Then when the stock plummets to $1 a share you buy them back for $100 and return the shares to the original owner. You've netted $900. But what hedge funds are doing is on a much larger scale.
The biggest issue is when these large hedge funds short stocks they sometimes try to purposely drive the stock prices down to reap the rewards. They go on CNBC and other business channels and talk shit about a stock to get people to drop it like a hot potato. It's slimey. [Reply]
