A list of posts from a variety of the comments sections of articles on GME are below, at the bottom is a post from user “FatAspirations” from a week ago that was removed from Reddit…
“Hey SEC, remember one week ago today when WSB’s most discussed stock was trading at over $450 and they simply banned and blocked retail from trading securities nosediving the price of the stock costing retail traders millions of dollars? Do your job and place the correct motherf***ers in jail…”
“All of a sudden “This market structure is dangerous to everyone”...was it dangerous when Wall Street firms boast a history of daily winning streaks lasting weeks/years? Or is it only dangerous when Wall Street is exposed for falsifying the number of shares available for trade in order to bankrupt companies employees and families? real price manipulators in gme were the short sellers who were a ridiculous 130% short. how is that even legal? you can bet if gme shorts/longs roles were different we'd be hearing how great it was….“didn't notice any hedge fund managers crying their eyes out when I lost money, or any other mom & pop or main street investors lost money, playing the game by your rules. Further, ****-*** government regulators have forever allowed naked shorting, to the demise of small business owners and their investors who were regularly wiped out because of it. Instead of doing a crackdown, why couldn't they have just been doing their job for the last 30 years?” So, don't expect me or anyone else who is on the right side of the GME trade to cry for the hedge fund losers who were on the wrong side of the trade. Besides, if you look under the covers I'm sure you will find plenty of hedge funds willingly helping to drive the GME stock price higher. What do you want? Everyone who is long GME to give the money back??? And BTW you ******* IGNORAMUS, shorting 130+% of the shares of ANY multi-billion dollar company "is dangerous to everyone."”
““Cramer bragged about being able to manipulate the market with $25 - 50 million. In /r/wallstreetbet terms that is each person coming up with $10.”
“They already are lining up for AMC, BB, NOK if they 'cross the streams' and get everybody unified they have serious SERIOUS invest muscle. This has already accomplished a win not in dollar terms but in psychological terms. They have a taste of market blood and they will go for more.””
"A short squeeze is legal, but when a coordinated attempt at price manipulation is attempted, then it can be defined as a “dangerous offense.” It's only a dangerous offense when the little retail guy does it.”
“Cramer admits manipulation” https://www.reuters.com/article/cramer-interview/jim-cramer-draws-fire-over-manipulation-comments-idUKN2036292620070320
“When you do something dumb like selling more shares than are available, this is what happens...There is a reason why wall st gives over 90% to Dems... Warren is against this because it actually shows that capitalism can find a way to redistribute wealth without our savior government getting involved. “
“$GME crowd keeps writing me about my connection to this whole Wall Street thing. If you want to understand the dynamics involved in GameStop, watch this video an old friend just reposted. It may be a little dated, but all the dynamics are covered here:
Funny how we old-timers take for granted that certain things are known to all.... that have been forgotten. I was not just involved in the issue, I was more or less SYNONYMOUS with the issue, 15 years ago. Gave many talks, public and private…” ~ Patrick Byrne (former CEO of OSTK, blogs now at https://www.deepcapture.com
“As the increasingly significant WSB snowball continues rolling down a steep hill, picking up size and speed, it continues picking up “activists” from all over the world. When you think about how many could potentially get behind this effort on a global scale, it can really get powerful..... yet most of the Globalist Kleptocracy that WSB has in it’s sites continues to underestimate it’s power, as evidenced by the many comments on the major forums....”
“ r/WallStreetBets has not discovered anything that was not known long ago. It did however succeed in creating what has become the world's biggest daytrading army which, most importantly, is well organized and works as a collective "hive mind." And, at 6 million users strong, or up a record 2 million users in the past 24 hours... r/WallStreetBets is now the world's largest decentralized hedge fund, and woe to any billionaire or respected asset manager who stands in its way (as Gabe Plotkin found out the hard way in just 24 hours).... there is now a credible force - in the face of r/wallstreetbets - that has the capacity to ramp up said names. We then merely extended the logic that applied to GME to other heavily shorted and mostly illiquid names.””
“Did Chamath Liquidate after he posted this?”
“it is about time Wall Street got a little bit of what they have been dishing out on Americans for years. It won’t take long for Wall Street to “circle their wagons” and protect themselves, but maybe this is just the warning shot they needed to make some changes. However, I highly doubt it.” ~ https://www.zerohedge.com/markets/how-does-all-end
“All hedge funds do is manipulate the market with their billions of dollars and their secret pacts. Hedge funds pay brokers for retail investor data and use it to trade; that is the definition of stock market fraud and manipulation. Give any of us access to the same investor data and we would win on our trades too. The only way retail investors stand a chance is to operate like a hedge fund themselves. The writer of this article pretends the stock market is legitimate. But most of us know it never was. The truth is that the stock market was built by the elites. It is a rigged casino run by them. You can still try your luck but you are playing with fire because they set the rules and they alone are allowed to break them.”
“All of this craziness is a result of being on the increasingly steepened slope of the ever rising exponential money creation curve. The central bankers have no choice now but create ever larger amounts of money with each new crisis. And the money needs to be created faster and faster too! Overnight is too slow now! They have also passed the point where they just created money indirectly via Wall Street banks (now considered too slow) to the point where they are spending money directly (faster)! Most people haven’t noticed this important shift at the Fed. Now the Fed wants to be able to send money directly to the people, because they realize soon they may need to get money to people instantly! Yes, congress is sending money to some people but in a sudden crisis, congress acts too slow!”
“can someone explain to me how all these talking heads do not get it? Institutional losses? Most of the Reddit Raiders are in for a few hundred bucks, maybe a thousand. Yes you have people like Portnoy in for big dollars but that is the exception not the rule. And most of the RRs are taking long positions with actual purchases not options nor futures. Again you can point to examples but not the majority. Six days into this you are obviously going to get Grifters and Bandwagoners and if they get boned on the dip...oh well. The entire point of this is F*** the man. And the majority don't care if they lose their stimmy they already lost everything. Seriously...what is driving me crazy is watching all these talking heads proving they have ZERO clue. Their worldview is so warped they can't see the warp. This the economic version of the Tim Pool/Joe Rogen vs Jack Dorsey debate.”
“Not sure how many people noticed but on Thursday GME stock was halted over 50x during the trading day! Where are the articles about that? That is blatant proof of market rigging from the top down... “
“hedge funds raping retail is fine and poses no danger to the "system" (of course it was built to do just that, so why would it?) ... but when retail finds a way to fight back, suddenly the financial sector as a whole is in danger? EFF YOU! “
“I'm ready to burn the whole system down because it's just that impossibly corrupt - it deserves whatever happens & it'd be a small price to pay to see that it happens. We began this country because we preferred liberty to life; now we're supposed to give it all up because we prefer slightly higher returns on our 401k's? Pathetic. Let's rid ourselves of these oligarchs, even if that costs us our fortunes (which it won't - the whole thing is a crock). Remember what our ancestors said? They pledged their lives, their FORTUNES, and their sacred honors to the cause of liberty. Here, we're only being asked for 1 of those 3, and it's the least important of the 3. “
“HFs ran up ridiculous short interest and WSB, like Porsche, saw the opportunity in the 'pros' incompetence and greed. It's an interesting point to make that this trading structure is dangerous to everyone because when Porsche does it, or a few HFs do it, or even a Shkreli does it, it's only a single or few highly profitable parties that have to negotiate to wind down the squeeze. Decentralized investing clubs with mixed motivations like this are an entirely different animal. Perusing WSB the defiant 'holding' and 'not selling' is apparent much like in the earlier days of BTC.”
“The WSB phenomena is very specific and targeted to effectively exploiting a loophole or flaw in the process of short selling. The confluence of being able to harness a lot of individual bettors making relatively small bets dollar wise against a single or small group on the other side, the short sellers. It's that simple. There is significant risk.if enough of the WSBers don't continue to play musical chairs then yes, many of those participants can get caught in a shocking drop, however the one dynamic that that they have on their side is the actual shortsellers. This is a specific fact of this trade. And the short sellers have a clock ticking which is their fund nav, which shrinks with each tick against them forcing them to act and cover or go belly up. The risk is that they don't have the capital to purchase the shares they owe I'm the market but that's up to the lenders of the stock to buy them in when they start to lose money on the position. That is where the very tough conversations exist because you have a sell side shop that's made tens if not hundreds of millions of dollars from hedge fund client now saying your brilliant idea is going to ruin one of us and it ain't gonna be me, but it's not as easy as you think , so maybe they don't buy them in as much as they should. And the lender of the stock runs the risk of getting one fat zero too if they can't be paid back , instead of this juicy mark to market gain . Nevertheless, these are risks that you take when you play the short game. It's just that heretofore it hasn't happened…All of a sudden you get guys writing letters comparing this to the stock market crash of 29 and 87. Complete poppycock. The financial crisis 2008 was the closest thing we came to 29. 87 was so incredibly harsh because that drop had not been experienced but it was largely technical from the first time machines were allowed to run unconstrained and that was quickly corrected eventually. What's interesting about this letter is that the events of last week generate this consternation when where was the letter for the last I don't know 10 15 years of never-ending Federal reserve money printing that has fueled a massive asset bubble of buying across the board most notably manifested by index investing where regard for a single stocks performance versus another single stock has been thrown out the window for a very simple appeal to risk on risk off behavior. When the free crack supply is feeding this addiction is cut off voluntarily or involuntarily that's when you got to look out below”
“What Wall Street did not understand or consider in the beginning is your intelligence, conviction, and diamond hands. You see, as a logic driven, ethics centered, libertarian boomer (born 1964 so technically a boomer but young enough to get totally ****** in 2008), I recognize your traits as being smart, risk adverse, driven, tenacious, and most importantly willing to die on this hill. THEY NOW REALIZE THAT YOU POSSESS all of the above traits (per my ****ting their pants on Wall Street Friends). As such they realize they are ****** because you are not operating from a Center based on greed, but rather from a position where you view yourselves as the last stop gap Entity to hand out Justice in a Two-tier Justice System/Universe. This is not business for you it is personal. Winning in your mind is destroying the corrupt oligarchy not getting rich (as evidenced by you generous charitable donations) .And that scares the living **** out of them. WS and HFs have no idea how to deal with people not universally driven by greed and corruption. Therefore you beautiful apes have exposed the critical flaw in their system - people that operate from a POV of justice and fairness cannot be controlled or gamed in a free market. Even though I believe it is an overused term in today's world, you have truly created an existential crisis in the financial markets and the foundational underpinnings of our civilization. You are about to knock down the load bearing walls of a corrupt system. And as such I will purchase 5 shares of GME on the open tomorrow and I will hold until the system breaks or GME goes to zero. This will be my donation of a sledge hammer to you to swing at the wall. I have also convinced several of my friends to do the same”
“it's okay for pelosi to buy tsla calls. how is that any different? in fact it's worse. she acted on inside information, a crime for the rest of us.”
"There's a new Hedge Fund in town....It has 7 million investors with never ending Stimmy checks.."
“Heard Jim Bianco saying that "naked short selling" is illegal. I'm not that up on securities law but that sounds right to me. When a stock is shorted 125% that seems pretty naked to me. Buying a stock (GME) at any price is not illegal, e.g. Tesla, or for that matter is buying or selling calls on same. Nor is it illegal for Joe citizen to offer their thoughts on specific investments/financial strategies, even via social media, even thousands of them. As to risk, well, yes there is always risk and you don't want to live somewhere where there is no risk... take my word for it. I'll also point out that people counseled by NYC and Wall Street's best have been losing money forever. What difference does it make if they blow themselves up instead. Until NYC, DC and Silicon Valley (where too much power and money has been concentrated) are in steep decline Americans will not thrive. I'm OK with the WSB action as it will help along the process and yes it might involve some pain. The United States of America as governed by our Federal Government is bankrupt. This is obvious to anyone who is financially literate as is the plan to devalue the US Dollar to make things all better (goodbye dollar savings). So to the boys on WSB, go for it, I'm a big fan of DeFi myself and am always looking for ways to move funds out of the hands of the traditional banking/brokerage channels.”
“yes, the “structure” is dangerous, but I didn’t see the Wall Street criminals complain about it until last week. The little guy isn’t in this to make a buck at this point (sure, they would, in general, rather make money than lose money, but the vast majority in this GME squeeze don’t seem to care, it’s bigger than that).”
“what he misses is that the public KNOWS it is getting fleeced and the money they are using to do retail raids is their beer/dope money. Why? BECAUSE IT'S ALL THEY ******* HAVE. This is the result of decades of giving whales first access to money, complete with a fed put, zero interest rates, and then giving it to the masses at interest. Oh, and the whales get to front run everyone, engage in COUNTERFEITING (i.e. naked shorting), and collude and pay fines (NEVER JAIL) if caught. Yes, the market is a fraud. Because our currency is a fraud. Our laws are a fraud. The media lies 24/7/365. The educational system is a fraud. Welcome to the third world.”
“The real reason Wall Street is terrified of the GME situation: TLDR; We probably own way more of GME than we think and that is freaking out Wall Street because it could prove they've been up to some extremely illegal shit and the whole system could implode as a result…” (full quote available here: https://www.reddit.com/r/wallstreetbets/comments/l97ykd/the_real_reason_wall_street_is_terrified_of_the/
“It was announced Pelosi bought Tesla stock in December and in January it was announced by Biden govt is mandating EV vehicles. Yep, no insider trading there according to the democrats...then there is the day trading legend (also from CA) Rep Judy Chu...”
“figure out what elites like pelosi and yellon have their investments in and you will have found the sure thing. Do you think they gave Yellon $800,000 plus for nothing. How much have they given Pelosi and Schumer ?there is a reason why all the oligarcs live or lived in NY or Cali. Rigged Game there only scurrying around now cause they are scared we figured out what they have been up to. “
“r/WallStreetBets is now the world's largest decentralized hedge fund, and woe to any billionaire or respected asset manager who stands in its way”
If GME made a secondary offering of $5B--with a stated intention of buying bitcoin, the price will continue rocketing up.”
“Will all these companies that are the "most shorted" for a good reason (their business sucks and they probably would go bankrupt soon), like GME, now offer outrageous secondary offerings with their newfound hyper-bubble wealth, and buy bitcoin? In other words, will the "most shorted stock" short-squeeze phenomenon drive a huge bitcoin revolution (similar to Microstrategy (MSTR))? “
“It's more than a retail revolt. If people on reddit have started to play the gamma squeeze, you can bet there are also a few big players who have pretty good intel on the positions sizes who also take the other side of the short trade to put the hurt on their competition. “
“AS the GME et al short squeeze saga lays bare the immense hypocrisy that is called the US Financial Markets, many of the larger more (previously) respected market players have taken to their various social media accounts to remind the little people that they have gone beyond their allowed boundaries....Please stop...you’ll make more later on anyways as the FED & banking cartel create more fuel for the fire.... “
I can’t help but wonder if he said that on purpose? YOU CALL THEM A MOB, OTHERS CALL THEM A TEAM...
“Of course we respect Mr. Block, as he works to remove fraud & malinvestment from the marketplace, and he was wise enough to protect himself and remove exposure. But, believe it or not “the mob” (actually, “the market” or “market players” would be more accurate) is acting rationally in light of the macro monetary insanity of central banks —they are utilizing an opportunity that exists...Of course, the end result of this is that malinvestment is rewarded (and further increases) as money flows to poorly managed firms that should be subjected to (free) market forces. But free markets do not exist thanks to the Federal Reserve and Government, and that is exactly the point. The game is rigged and the little people it is rigged against teamed up to utilize an opportunity. Just because ...when hedge funds & the banking cartel use similar tactics, it’s considered “God’s work.” But when smaller market players do it by teaming up, all of a sudden it must be stopped and is considered evil....Again, the hypocrisy is off the charts —their game, their rules. The smart thing to do would be to have sound money that does not encourage malinvestment in the first place.... “
Their game, their rules....when someone else starts winning, they change the rules (or get bailed out, something that would never happen under any circumstance if markets actually existed, as that is bankruptcy courts are for...).
“They’ll just change the rules like they always do when it gets serious (in other words when the wrong people start to suffer serious losses). In this case that means they ban buying and allow liquidation only. Remember back in the last crisis when they banned short selling of financial stocks during the end stage of a prior market cycle? Brokers waited until the opportune moment to initiate restrictions...they knew they would have to let the rally run it's course before they could engineer a correction, so they pick a substantial number, like 500, and once it passes that they initiate restrictions and only allow liquidations of positions...This puts the longs in a very uncomfortable situation, as those with unlimited funds can always outlast the little people (you & me)...When the inevitable correction comes it will paint the charts with a huge red candle...The net affect is that new buyers are scared away from the ponzi, effectively starving the fire of fuel...This still does not mean it can't eventually continue, however. What really needs to happen to end the squeeze is for the company to do a secondary issue of stock, increasing supply and devaluing the current shareholders... “
“The banking cartel creates moral hazard with their manipulations, then they scold market players that turn the tables on them.... oh the hypocrisy! “
“Bottom line we need hedge funds to come into the light and have to play on the same playing field as everyone else. We also need to limit shorting to 25-50% of the outstanding stock. Being able to short more shares than were in existence is a bad plan.”
GME - EndGame part 5: They couldn’t win, so they cheated. Why you should leave Robinhood.DD(self.wallstreetbets) submitted 1 weeks ago by FatAspirations to /r/wallstreetbets
GME - EndGame part 5: They couldn’t win, so they cheated. Why you should leave Robinhood.
This is an extension of my DD series on GME. If you haven’t read them and have time, they will provide some background. In this post, I will discuss how shorts manipulated the market to score a massive victory today. There is a mass attack in mainstream media to try and portray retail traders as violating the rules, when in essence it’s the guys on the other side who are manipulating.
Sorry it took a long time for me to get this out, but I’ve been fuming all day at the blatant manipulation.
TONIGHT: AOC is doing a Twitch stream.Please tweet this post andthis one to her attention and to anyone else (Chamath? Elon SEC? Portnoy? Bueller?), to help people understand the manipulation that’s going on.
TL;DR: Shorts couldn’t win. So they cheated. I’m sharing my research and speculations. This is not financial advice; do your own DD. I didn’t sell any shares today.
Previous Important Posts
EndGame Part 1 (DTC Infinity) covered the short positions, the float, and potential snowball impacts of increasing prices, and argued that part of the reason that shorts haven’t closed was that it was pretty much impossible for shorts to close
EndGame Part 2 covered Cohen, fair market cap analysis, and potential investors, in which I talked about the amazing mid-to-long term potential for GME.
HEY SEC, if you’re reading please read this one - After the Citron tweet, I shared this fan fiction on what looked like blatant market manipulation by shorts on the day of the tweet, and offered some education on strengthening your position. This one got buried and is worth reading.
EndGame Part 3 covered the gamma squeeze, potential shady tactics by MMs, and some tips for staying safe.
EndGame Part 4 covered the continued gamma squeezing and the resulting tenuous position of the ~50M shorts that were still in GME.
The setup for the biggest, dirtiest trick of them all - Background you need to understand
The new twist in this story all started with Citadels & Point72’s investment in Melvin Capital, one of the biggest shorts in GME. Remember - Kenny G does not like losing money, so there’s no way he was going into that agreement with a potential loss of $3B on his hands.
These are not nice folks, people.
What you need to know about Citadel
As I mentioned in part 3, I was concerned about the Citadel investment in Melvin because of Citadel’s connection to market makers. It seems like an amazing regulatory oversight.
In addition to the possibility of market-makers employed by Citadel acting in non-neutral ways as I discussed in part 4, this is the other bad shit:
Many of you are on RobinHood for the free trades. How does RobinHood make money? Theysell your order flow data to Citadeland lend your shares to shorts, pocketing the borrow fee.
Citadel paid RobinHood $100M in one quarter of 2020 just to know what you retards are doing on RobinHood. What do they get for that?
Citadel knows exactly the positions you’re holding.
Citadel likely knows how much of that is on margin.
Citadel knows Robinhood’s margin rules and when they would force you to sell.
Citadel gets all of your limit buys, limit sells, for every equity and every option
Citadel gets your history of purchases and sales, giving them very clear ideas of YOUR likely buy and sell points. They know when you bought them, how many, and can probably guess your own personal pain thresholds based on other equity sales.
Trading on insider information should be illegal right? Well trading on your order data is not illegal for them.Get the fuck out of Robinhood folks. This is why it makes sense to pay for commissions. If you are not paying for the product, you are the product.
In addition, remember that I discussed that we have been gamma squeezing for the last few days. In short, this means that a lot of the price action has been driven by MMs buying shares to delta hedge the options they’ve been selling you. Guess what?
Who sold you those calls? Citadel.
Who knows exactly how many shares are being held at each price level by market makers? Citadel.
The big dirty trick: how I think it happened, the implications, and how it helped the shorts
Remember, that out of 69M total outstanding issued shares, GME still had 50M~60 shares shorted as of today morning.
In my last post, I touched on the potential ripple effects of this short trade going against hedge funds, but here’s a synopsis:
Hedge fund run leverage portfolios. Here’s Chamath doing a ELI5. Now, if the GME short was gonna go totally tits-up for shorts, say at $1000/share, here’s what would happen:
You’d start to see a sell-off wider indices, as they have leveraged long positions. In order to not get margin called on their short positions, shorts had to start deleveraging (selling) their long positions. Notice the big selloff in the wider market yesterday? That was likely a whole slew of hedge funds working together to deleverage their longs, selling all at once, to shore up capital for their margin requirements against their short positions.
Regulators don’t like turmoil in the wider markets. Kenny G, Steve Cohen, and a bunch of funds then likely went to said regulators and said “Oh poor me, I guess I’m going to have to liquidate completely and sucks that means we’re going to maybe trigger a wider market selloff”
Said regulators: “Oh no! What can we do to get out of this mess?”
Snakes / Short sellers / Citadel likely asked regulators to only allow closing of positions to soothe the markets and “reduce volatility”. Make it sound like it’s going to be a good thing for the world, to convince the regulators to agree. Make it sound like it’s for the good of retail.
I really want to know who made the decision to only allow closing positions as that was probably the largest coup shorts could have achieved in this fight.
If Citadel or the shorts knew about this decision in advance, or worse - if they made this decision happen, this is one of the greatest acts of market manipulation in history.
As you know, this decision meant that investors could only close their positions today. This means that shorts could only buy and longs could only sell. However, when you remove the ability to BUY for everyone, what happens? You get some selling pressure. Now us diamond-hand retards know not to sell when no one can buy, right?
So it didn’t even have to be you guys selling. It’s very likely that some cooperating hedge fund has been buying shares on the run-up, and chose this morning to sell the shares, triggering a gamma wave down, tumbling the stock down 80% in 1 hour. Thanks SEC for looking out for us!
Let me explain this a bit better
Remember that market-makers were holding millions of shares of GME to delta-hedge the calls they sold you.
This is the big one. As the price goes down, say with some selling by the co-operating hedge fund, market-makers have to sell the shares they were holding shares to delta-hedge.Normally, this wouldn’t move the price much, but when no one can buy the shares besides shorts this created a massive selling wave. Something like 30-40M shares had to be sold when no retail investors could buy. What a clusterfuck.
People warned investors about stop losses and margin. Citadel knows all of your stop losses, and all of your margin holds so as the price went down, not only do more people choose to panic sell but also some folks got auto-soldat the fucking bottom either by margin issues or by their own auto-sells executing.
As soon as the 80% drop had cleared all of the known auto-sells and margin calls Citadel knows about, shorts and funds turn around and start buying, with volume, right at the bottom. None of us could buy, so the discount is just for the big boys today.
In addition to this huge push down, they continued to manipulate the stock so none of the few buyers left could actually push the price up. There’s a video on twitter showing the orchestrated sell walls today allowing shorts to keep buying cheap shares. If someone adds it in the comments I’ll link it here.
I believe Citadel, the short funds, and possibly the brokerages colluded to bail out the hedge funds by stealing money from Gamestop investors.
This guy believes Citadel reloaded shorts right before the buy restriction.
Furthermore, they’re fucking smug about it. Here’s Steve Cohen rubbing it in your faces.
Hard to tell. We all need to pay close attention to what happened today. It’s very likely a lot of shorts covered with the heavy discount, but we won’t know for sure for a little bit. I’m still in GME and want to see this thing thrive.
Robinhood and possibly some others are opening up buying tomorrow. This is your money, so be safe. I’m staying in GME out of anger at this point, and closing my Robinhood account. Screw these cheats; screw Citadel. They need to be investigated.””