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Topic Originator: P
Date: Thu 28 Jan 09:52
Of Wall Street being shafted by the little man.
Hedge fund goes short on GameStop celebrating its demise only for small investors to drive the price up sending hedge fund into near collapse *.
I know short trading is a legitimate business but it’s always felt unsavoury and real bottom feeding. Don’t know what the regulators will make of the little man doing the same as the wealthy but without desired results though.
* pretty safe to say they will lose their money in the end though unless GameStop has a Lazarus like reinvention
https://www.theguardian.com/business/2021/jan/27/gamestop-stocks-us-hedge-fund-pulls-out-after-heavy-losses?CMP=Share_iOSApp_Other
And the internet wasn’t slow to rejoice
https://god.dailydot.com/tweets-redditors-gamestop-stock/?fbclid=IwAR13LJN9ANZIjFbTaINmU0GNuY2F9mJY6lhEjNVhEnu1EwxLnR1K_sbqPzQ
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Topic Originator: jake89
Date: Thu 28 Jan 10:22
I was wondering what was going on with GameStop. I'm no trader but do small investments and spotted their rise. Naively put it down to Christmas and New consoles!
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Topic Originator: Wotsit
Date: Thu 28 Jan 11:48
The Hedge Funds have already lost money because they are having to buy up shares at the higher price to cover potential losses form shorting the shares. To make it even more perfect they are having to buy them from the independent traders, who are making a killing - one guy has made millions from a $5000 stake.
Apparently there are also more short options in existence than there are shares, which will cause issues no doubt!
Although The SEC in the US is probably going to stop it in record time because the wrong people are manipulating the stock market now, people with no respect for entrenched hierarchies and an unfair desire to redistribute wealth.
The enemy travels by private jet, not by dinghy.
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Topic Originator: P
Date: Thu 28 Jan 12:11
Brilliant 😃 although I’m pretty sure they will have legislation that blocks crowd collusion (or similar wording to stop small investors grouping) within a couple weeks
Post Edited (Thu 28 Jan 12:12)
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Topic Originator: Wotsit
Date: Thu 28 Jan 12:33
Although, being Reddit, there`s a chance they just want to get it $420.69 for a laugh.
The enemy travels by private jet, not by dinghy.
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Topic Originator: aaaaaaaaaargh
Date: Thu 28 Jan 12:34
My 15-year-old told me about this yesterday morning. Something about a subreddit that I didn`t really understand.
I will be honest and say I didn`t really get the implications of it, but it does seem like the system is screwed (and has been for a long time).
The funniest thing is seeing the reaction from investment banks. They lost billions by shorting, and their solution is more shorting. Now they are starting to think they might need a plan B.
I think they will win in the end, but at least it is fun while it lasts.
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Topic Originator: P
Date: Thu 28 Jan 12:42
The must have all watched Trading Places at Christmas to get the idea
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Topic Originator: DulochConvert
Date: Thu 28 Jan 18:08
Here’s me having gone all in on Frozen Concentrated Orange Juice, I thought there would be a shortage with the freezers being used to store COVID-19 vaccine.
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Topic Originator: jake89
Date: Thu 28 Jan 18:45
Trading 212 has blocked purchase of GameStop shares.
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Topic Originator: The One Who Knocks
Date: Fri 29 Jan 00:40
Donald Foss, a sub prime auto lender, bought a 5% stake in Game Spot last year for 12 million. He`s now 500 million dollars richer. A couple of other rich guys have made even more than that.
And although my eyes were open
They just might as well be closed
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Topic Originator: The One Who Knocks
Date: Sat 30 Jan 01:35
Investment firm Silverlake has sold its shares in US cinema chain AMC for over 700m after redditors powered the companies shares up by ten fold. Seems that a lot firms and individuals who were staring down the barrel of bug losses are getting bailed out by these Wall Street activists. Funny that isn`t it?
And although my eyes were open
They just might as well be closed
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