It wasn't David vs. Goliath. CNBC, Financial Times, WSJ, etc. can't tell you what it really was, because they're beholden to all these Wall Street types. They don't get stories unless their relationships are cordial.
This was arrogant idiot billionaires vs. autistic retards of the Internet, and the arrogant billionaires in this case (Melvin Capital) had the chance to walk away when they got their $2.75 billion capital injection. They could have closed their position out and taken a relatively moderate loss compared to the total destruction of the fund that they're going to be facing in two days.
The reason no one on CNBC is framing it that way, is because while Melvin Capital is the face of the short sellers, a lot of people piled on after Melvin Capital, but no one else piled on with the level of idiocy they did. So if you actually call it like it is, and remind everyone that a 139% short on a company is literally the most fucking retarded thing in finance ever, then you incur the wrath of a lot of wealthy people who are pieces of shit and will use their money as weapon.
The problem is, the arrogant idiot billionaires have been assfucking not only the American people, but a good portion of the world for so long, that they're not used to someone spitting in their face, so they doubled-down. Unfortunately for them, they forgot that when you go up against the Internet as a collective, you always... always lose. No one fights the Internet and wins.
They released a story that said that Melvin Capital AND Citron both covered their massive short position (in a company with > 100% shared shorted), in one day, including AH? I don't buy it. AH volume was 4M in premarket, and even though there was ridiculous volume the day before, I'm willing to bet that most of it was fuelled by Blackrock, Chamath and Elon.
people in /r/wsb are assuming these stories are planted. Given the ridiculously nervous delivery of the story when it broke by the chap on TV (has to be seen to be believed) I can understand how people would be suspicious but idk.
The suggestion is that Friday is apparently the day when the bets actually become due and then we'll actually know if Melvin did cover or lied about covering and actually doubled down.
There’s nothing wrong with >100% short interest. Think of shorting a stock as a derivative which it is technically. In fact, if you were to add up all the outstanding interests of call options for certain stocks, you are going to get more than the float available for purchase. So does that mean call buyers are in the wrong? Oversubscribed short interest just tells you there were a lot of people short the stock with delta 1 infinite put options. I understand there’s this hate for Wall Street but really let’s at least get the math and details right.
The assumption that this is a bunch of robin hood everyday-man sorts conspiring on Reddit seems incredibly naive.
The GameStop play (as with BBB, AMC, Express, etc) are classic pump and dumps, albeit with a short-squeeze magnifier (basically equal to a DDOS amplification). And if you really traced back to the origin, I highly doubt you're going to find some Joe Nobody -- you're going to find some very well financed, planned player.
GameStop is a doomed enterprise in an obsolete space (selling physical copies of games), so it was incredible seeing WSB spin fantastical tales of the marvelous future ahead for it.
Everyone else gets some intense FOMO that leads them to piss away their own money (you can't just buy options because options on hyper-volatile stocks price that in), and then a lot of people get burned. Everyone is running around talking about how everyone made millions from WSB tips or something, it's farce.
As is always the case, a tiny number of people benefit, and a huge number of people financed their return.
The whole story seems super dumb. And the SEC is likely paying very close attention.
Loads of people throughout this discussion have absolutely no clue what they're talking about. What a low information crowd this is.
> you're going to find some very well financed, planned player.
You're going to find Dr. Michael Burry. He started buying GameStop under his Scion Capital shop back in June 2020, and /u/DeepFuckingValue on Reddit / Roaring Kitty on YouTube made the case for GameStop as far back as June of 2019.
EDIT: Corrected "Mr." to "Dr.". Corrected the timeline of DFV / Roaring Kitty to the correct dates.
Nobody thought GME was a good company (certainly not worth $15+ a share). They thought that the short interest in GME stock was too large, and that longing the stock could trigger a short squeeze the likes of which has never been seen. So far it seems they were right.
What a funny retort. Wait, are you just making up the notion that we can "identify" whales moving billions? Do we check the central trade registry and cross reference with billionaires?
Do you know how any of this works? Or are you just making this up?
Unless you're the SEC, this isn't possible. Reporters can't do that, so if you're taking the absence of that evidence as evidence, you are simply ignorant.
This was arrogant idiot billionaires vs. autistic retards of the Internet, and the arrogant billionaires in this case (Melvin Capital) had the chance to walk away when they got their $2.75 billion capital injection. They could have closed their position out and taken a relatively moderate loss compared to the total destruction of the fund that they're going to be facing in two days.
The reason no one on CNBC is framing it that way, is because while Melvin Capital is the face of the short sellers, a lot of people piled on after Melvin Capital, but no one else piled on with the level of idiocy they did. So if you actually call it like it is, and remind everyone that a 139% short on a company is literally the most fucking retarded thing in finance ever, then you incur the wrath of a lot of wealthy people who are pieces of shit and will use their money as weapon.
The problem is, the arrogant idiot billionaires have been assfucking not only the American people, but a good portion of the world for so long, that they're not used to someone spitting in their face, so they doubled-down. Unfortunately for them, they forgot that when you go up against the Internet as a collective, you always... always lose. No one fights the Internet and wins.
And they're going to learn that this Friday.