GameStop is a video game retailer that has been priced at about $3 to $10 a share for much of the year. But in the past few days, individual investors have driven the share price above $300. …
Hedge funds love shorting stocks, a trading technique where you make money when stock prices go down. Companies often go belly up amid short selling “bear raids.” That’s why small investors hate hedge funds so much.
When word spread among Robinhood traders that GameStop was heavily shorted by the big guys, the tables were turned into a bull raid. They drove up the price, and all those bets that GameStop would decline in value failed. A “short squeeze” was on at a level sophisticated market players hadn’t seen in years.
At least one big hedge fund, Melvin Capital, needed a bailout as prices of GameStop spiked a gazillion percent in a matter of days. My trading sources say there will likely be other big players seeking money to stay alive.
Delicious, right? For those who think — not unwarrantedly — that the market is rigged against them, the Robinhood revolt is a wonderful bit of schadenfreude.
The little guys, who organized the raid at redit group wallstreetbets, have made about $5 – 10 billion to date at the expense of Wall Street hedge funds who were shorting Gamestop. By not selling the shares, the price keeps going up as the shorters have to buy them to prevent their losses getting even bigger.
Not so fast. Wall Street got their buddies in big tech to kneecap the little guys:
Discord has banned the r/WallStreetBets server … Discord says it did not ban the server for financial fraud — rather, it was banned because it continued to allow “hateful and discriminatory content after repeated warnings.”
Shortly after Discord banned the server, the moderators made the entire r/WallStreetBets subreddit private as well, taking it dark for nearly an hour. When it returned, the moderators of the subreddit had a message about the Discord ban which you can read below:
“We’re suffering from success and our Discord was the first casualty. You know as well as I do that if you gather 250k people in one spot someone is going to say something that makes you look bad. That room was golden and the people that run it are awesome. We blocked all bad words with a bot, which should be enough, but apparently if someone can say a bad word with weird unicode icelandic characters and someone can screenshot it you don’t get to hang out with your friends anymore. Discord did us dirty and I am not impressed with them destroying our community instead of stepping in with the wrench we may have needed to fix things, especially after we got over 1,000 server boosts. That is pretty unethical.”
False flag anyone? Just get someone to slip in speech that is now censored, and then tell some big tech guys. Cancel, cancel, cancel. If the Dems can do it to the Federal Government itself (the Capitol riot, viewing the “protest actions” as speech), then it must be ok for anyone to do it.
At her daily White House press conference Wednesday afternoon, Psaki responded to questions over whether the administration might get involved in the ongoing stock surge by noting that they’d just hired Janet Yellen as Treasury Secretary.
“Is the White House concerned about the stock market activity we’re seeing around GameStop and now some other stocks as well?” one reporter asked Psaki. “Have there been any conversations with the SEC about how to proceed?”
“Well, I’m also happy to repeat that we have the first female Treasury secretary and a team that’s surrounding her and often questions about markets,” Psaki replied.
She continued by noting that the White House would send reporters to the Treasury for comment, “but our team is, of course, our economic team, including Secretary Yellen and others, are monitoring the situation.”
This cannot end well. It will end soon.