Current Events > Can someone explain this whole Gamestop stock thing

(+) Yeah! (+)

All I'm seeing is that reddit is destroying wall street?

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Gamestop is kong obvs.

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g980 posted...

Gamestop sucks at making money
Hedge fund bets money that gamestop will continue to suck at making money
Hedge fund bets waaaaay too much money that gamestop will continue to suck
Reddit inflates the price of gamestop to make hedge fund lose a lot of money

Hedge fund was dumb for overplaying their short position
Reddit is shitty for crowdsourcing market manipulation

Short selling: i will sell you a stock that i dont own with the promise of buying it to give it to you later.

If stock is cheaper later, i make money
If stock is expensive later, i lose money

Because stock prices can always go higher, you can lose infinite money on short positions which is basically what happened

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WS bet that GME would have shitty stock and shorted it

Reddit manipulated it to make the stock skyrocket and rich WSers to lose a lot of money

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And no despite the reddit circle jerk, no one is destroying wall street

One fund got hit very very hard but was able to raise enough capital to get through it
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I barely understand it, but the tl;dr that I got was that an investment firm bought a bunch of stock expecting it to drop in value, to make money by... shorting it, which I guess means you lend out the stock and buy it back later? And you're essentially betting that you will spend less than you get by borrowing it out because it costs less later, But reddit got in on buying the stock which drove the value up and fucked over the investment firm while making a bunch of money themselves.

I'm sure I got it wrong, but that's my personal understanding on it.

*waits for CE to better answer* lol

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Lmao

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Reddit made rich people lose money

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Blue_Target posted...

Reddit made rich people lose money

Reddit made some rich people lose money. It made other rich people richer.

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g980 posted...

One fund got hit very very hard but was able to raise enough capital to get through it

They're still losing money.

https://twitter.com/mrsmcglover/status/1354252534534205440?s=20

Wallstreet is pulling out all the stops to try to stop losing money. They're pumping AMC shares to get the lesser informed peeps to stop paying attention to Gamestop, they're deliberately spreading misinformation on how Melvin "isn't in the GME stock", and they're pushing articles like these

https://archive.ph/MdIig

to make it sound like retail investors are bigoted monsters when Wallstreet has had a hand in half the things wrong with this country.

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Some average joes will get burned. But a lot of people will make a lot of money, and they'll be winning it from rich hedge funds, so it's a good thing.

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This is maybe a good explanation:
https://twitter.com/barstoolsports/status/1354186502213951490

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Chimp have 5 banana. Snake asks to borrow bananas. Snake sells the borrowed bananas, hoping that bananas will be cheaper in the future. Apes see what's happening, and buys all the bananas before Snake can. Snake is still obligated to return 5 bananas to Chimp since they were borrowed. Snake made the wrong bet, and now Apes can sell bananas for much more than Snake bought them for.

Snake hadn't accounted for this. Apes alone cannot buy much banana, but Apes together strong.

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