> There's also orders of magnitude more money to be lost, because there's just more money on the table.
And my point is that the losing side of this is inevitably going to be the majority of people long $GME.
> The market can remain irrational longer than you can remain solvent.
Billionaires can remain solvent longer than you can remain irrational.
Again, Melvin is almost certain to lose their shirts on this. But there’s many, many more hedge funds that are sharks circling the waters. And Melvin and WSB are both going to be their prey.
> Billionaires can remain solvent longer than you can remain irrational.
Melvin Capital has a very real chance of going insolvent. Also have you heard of Lehman Brothers? Hell, just watching Cramer get upset is enough for me to realize the rich aren't happy with what's happening. It seems pretty obvious they're worried. Why else would they pay for ads claiming to have closed a position for which they supposedly no longer have an investment stake?
> And my point is that the losing side of this is inevitably going to be the majority of people long $GME.
I said the same thing about TSLA way back when. So did David Einhorn. I still believe TSLA is more than 10x overvalued, and people continue to get rich despite my "rational" obstinance.
Also you're completely missing the point. Do you not even understand most of these people aren't trying to make money? If you don't understand that, then you don't even have a basis to start the conversation.
> Hell, just watching Cramer get upset is enough for me to realize the rich aren't happy with what's happening.
The "rich" are a large group. Much larger than the few names that have been on the news recently. There have been plenty of believable reports about funds that already made crapton of money on this attempted squeeze. Now, that everyone's eyes are on $GME, many more will make fortunes riding the stock down. Believe me, they are very happy about it. That kind of predictability on the market happens rarely, and is a gift for the funds.
There's been wall-to-wall coverage of DeepF*Value and the other lucky people who are getting out early. Half the stories on here, on Reddit, in newspapers and on TV. You sound frankly delusional claiming nobody talked about them.
(Highlighting the past winners is essential for every pyramid scheme, for recruiting greater fools.)
One redditor has made (at least if he gets out now) somewhere around $50m. It’s highly likely this redditor is one of the biggest winners from the WSB crowd.
Melvin is down $5,000m.
Who do you suppose accounts for most of the remaining $4,950m in Melvin’s losses?
> Melvin Capital has a very real chance of going insolvent
I just don’t know how many more times I’m going to have to say that Melvin is going to lose everything.
Melvin and WSB are not the only two players in the market.
> Also you're completely missing the point. Do you not even understand most of these people aren't trying to make money? If you don't understand that, then you don't even have a basis to start the conversation.
That’s the meme. We’ll see how the people with tens of thousands YOLO’d feel when things turn south.
And if that’s the point, that makes this whole thing all the more depressing. They’re sticking it to the hedge funds by… blowing a bunch of money taking out one while dozens of others profit off of them?
The point I'm making is that Melvin is going under, a few Redditors will make money if they get out in time, but the eventual impact of this will be a different set of billionaires gets richer while most Redditors are going to be stuck holding the bag.
Which isn't exactly the "Reddit gets rich off of evil billionaires" narrative that's being sold. And it makes the diamond hands strategy all the more foolish when literally the only way Redditors will actually stick it to the billionaires is if they all manage to get out in time. Diamond hands as a strategy just makes WSB the eventual suckers donating their money to the funds who shorted at $400.
Again, for many people it's not about making money.
And many (most?) people are aware that billionaires will still get rich on this trade.
You keep explaining this to me as if it's something I don't already know. The part you are failing to understand is we hold fundamentally different values.
And my point is that the losing side of this is inevitably going to be the majority of people long $GME.
> The market can remain irrational longer than you can remain solvent.
Billionaires can remain solvent longer than you can remain irrational.
Again, Melvin is almost certain to lose their shirts on this. But there’s many, many more hedge funds that are sharks circling the waters. And Melvin and WSB are both going to be their prey.