Topic: The GameStop drama and what does it mean for Bitcoin - page 4. (Read 1435 times)

Honestly, 70+ billions seems to much to me, what about 2 billions?

Citadel, Point72 Back Melvin With $2.75 Billion After Losses


Plenty:

Citadel Silver Holding Exposes Rifts in WallStreetBets Army


Actually some one suggested the redditors pushing for the silver squeeze were a little bit, “odd” to the group not to think they were actually Citadel minions undercover.

The one is realized losses, the other unrealized gains. Big difference as anyone who is in crypto should know

Keep in mind that Ryan Cohen becoming a major shareholder, then in early January becoming one of the board members of GameStop were the catalyst for this rally to begin with; so him being a big winner of the current situation comes to no surprise to anyone.

It's really funny though how this whole situation has escalated into a "stick it to the man" kinda thing. It all started as relatively simple value investing, in a forum full of options and futures plays, with the short squeeze just being a kind of funny "what if..." situation. Then again, accidentally turning into "heroes" is probably one of the most WSB things ever.




Unfortunately not only monitor, but also manipulate, where possible. The amount of bots on this sub has become immeasureable. Where the bots failed to steer the conversation (e.g. silver), they just had large media outlets lie through their teeth. Generally the amount of pumpers jumping on the bandwagon is rather concerning (e.g. DOGE and now XRP).



Until now I haven't been following the sub regularly except for whenever some crazy plays happened (guh!), however from what I've gathered Left has been drawing the ire of r/wallstreetbets for quite a while now. It seems like GameStop was the last straw and apparently the one that broke the camel's back. Either way, I wouldn't trust anyone who apparently has become so out of touch with the market with either long or shorts.

This is fun, the algos are now going to scrape reddit for price movements

GameStop short squeeze fuels new stock-market services tracking Reddit messages

A group of data providers are wagering that financial markets will never be the same again and that deep-pocketed investors will shell out big bucks to monitor discussions on message boards like Reddit’s r/wallstreetbets and social-media platforms like Discord for mentions of publicly traded companies.

Meanwhile, Andrew Left, founder of Citron Research, last Friday, a famed short seller, altered his strategy, saying that his firm would no longer be publishing short selling reports. Left was seen drawing the ire of individual investors for his negative views on GameStop — a bricks-and-mortar retailer that he says was worth only around $20 in the midst of a growing shift of digital videogame sales.

“Young people want to buy stocks. That’s the zeitgeist,” said Left about his decision to exit the business of identifying companies that he thinks are overvalued and announcing publicly that he ‘s betting its shares will sink.

“They don’t want to short stocks, so I’m going to help them buy stocks,” Left said of his focus on long investing.


https://www.marketwatch.com/story/gamestop-short-squeeze-fuels-new-stock-market-services-tracking-reddit-messages-11612203740?mod=home-page


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As an aside is anyone just damn impressed how much lying and BS has been coming out of the Mainstream media regarding gamestop

Are you telling me Melvin's friend loaned Melvin 70+ billion? And all this time I thought friends are assholes. Must be nice to have that kind of friends. So you are telling me that the game is now WSB against the daddy of Melvin which is impossible to win. Holy Crap. That's big if true.

Btw that Silver pump stuff was a distraction from the Fake News Network it looks like. WSB on their sub says that let alone pumping silver, they actually hate it  


Is there a source for that? I thought all big funds/banks were shorting PM's. Lately it became too hard to separate fake information from right. I don't want to read another article tomorrow that says Citadel was actually shorting PM's.  

And I learned the daddy of Melvin too thanks to you. So the daddy is Citadel who is also the daddy of Robin. Who is the wifey?

As for Central Banks, WSB is interfering with free markets, hence picking winners and losers in Wall Street.

Same goes with Silver. Do you know which hedge fund is very long silver?
Pick one...

Answer: Citadel. Exactely. The very same Citadel that owns RobinHood and was forced to bail out Melvin capital.
Oh, the irony.

Hmm...


Melvin lost about 4.5 billion during the entire month, it has already received 2.5 billion in new capital from two other investment funds.
Ant the "heroes" have also managed to make some Wallstreet guys earn four times as much as all the others lost, a bit counterproductive if you want to bring the "system" down, isn't it?

They did succeeded in the sense that the losses Melvin had was bigger than the whole market capital of Melvin, right now they are not really fighting against them anymore specifically but basically against all the other shorts.

Melvin had to close their position because it peaked at 70+ billion dollars, Melvin doesn't have that kind of power, of course people backing Melvin did and they saved them and paid it but at the end if Melvin was gone, and there are still shorts, that means we are talking about more people in the short place that took Melvins' place betting against WSB to lose. That is what they are fighting against, and obviously it will not continue forever, I do not see millions of people holding GME for 10+ years, that is not going to happen, but at least they have managed to make wall street guys lose billions of dollars and that is good enough for them.

The real question for me is while Gamestop tends to zero how much capital is stuck in short covers pushing the stock price up after this all ends.

If there is one winner out of this that is AMC they were able to get their debt paid and build up a bit of a nest egg to survive Covid so Reddit bought the movie theatre at least a couple of months and possibly more depending on how much they can raise from new stocks.
https://www.bnnbloomberg.ca/amc-says-bankruptcy-off-the-table-after-raising-equity-loans-1.1553492

The game can go on for a while, but in the end GameStop's shares will tend to zero as the company is basically broke. I just don't hope the hedge funds will lose so much that some of them, and perhaps banks too, will need government support. Then tax money would be due for the whole action.

I agree with you that a large crowd can have a big impact. The hole short squeeze looks very similar to the Porsche, VW take over where short sellers had to cover their positions quickly. But eventually the prices got back to normal. The next weeks will show how the gamestop drama is going to end. Will we see prices drop down to the old levels again and who is going to get hurt the most? The hedge funds said they already closed their positions, but who knows if its true. Maybe they still are losing money.

The problem is, robinhood claimed that they wanted to "protect the retail investor from losing too much" but in reality as long as they are allowed to do what they want and keep doing what they want, they won't lose, only hedge funds will lose.

You know why they closed? The reality is that those huge hedge funds were allowed to short more than 100% available stock, which means if they were to asked to pay it back, they wouldn't have enough stocks to pay it back, which would cause them to lose insane amount of money, they already lost more than 70 billion dollars just due to this Fridays squeeze and that is just the start, we are talking about even more in the future the longer this continues.

But robinhood couldn't provide the same for retail investors, because they couldn't buy more than 100% available stocks, even though hedge funds could short more than available, retail investors were not allowed to buy more than available. That was the real issue on Thursday.

It really is a mind game someone went into the game theory of it bit complicated kind of like a whitepaper of scenarios for what Bob and Alice will do still not bad overall
https://yudkowsky.medium.com/r-wallstreetbets-is-trying-something-unprecedented-in-history-and-the-medias-not-reporting-it-7ab507e4a038



A part of me thinks that this generation will be known for trading memes
If your ticker is DNK (Dank) FAP PRN (Etc) an irrational rally may happen ....

Did they though? I didn't see Melvin Capital's bankruptcy in the news. Did they hang themselves yet? As far as I know they are still fighting because they know eventually WSB will run out of fuel and the stock will go to zero.

Good news is WSB is now after Silver as I read it from various sources. Not gold but close enough. They see SLV is much easier to push unlike Gold... Makes sense.

This is a whole different game if they are doing it for real. There is absolutely nothing common in SLV and GME. In fact I ordered my first ever physical silver bar today.   I read it here and there the estimated numbers for silver prices change between $200/ounce and $1000. Possible you think?

Bitcoin pretty much experienced the same thing in the last, only that there are no greedy bankers taking advantage of it, just mostly small-time investors wanting to make a quick buck or visionaries who saw big potential in bitcoin way back 2009, they literally pumped the coin up until 2017 where we reached pur very first 10k milestone, and even now it is still evident. For me there is no particular good or bad in this situation as inadvertently people lost their jobs in ine way or another, but truth be told, people did this out of spite against the greedy bankers and have succeeded, which goes to show how an angry public could affect the tides of the market in a snap of a finger.

That is the most unbelievable part. Now there is a clash of interest between those who were mocked bad by a whole reddit community (Robinohood), those who have been basically drained (hedge funds) and those who made a quick buck (WSB).
To me the most important thing of this whole story is that this showed how much power crowdsourced masses have. Using this huge power for the good or the bad can have huge consequences in the real life. How ready are we for that?

Numbers are going up!

Losses on short positions in U.S. firms top $70 billion - Ortex data


Please note this is an aggregate figure:

1.03 billions, so far.

r/dogecoin used to have a special place in my heart back in the day (it used to be kinda like r/wallstreetbets but with less colorful language), now I just feel ashamed for that part of the crypto community. They are literally just inciting a pump and dump, trying to capitalize on what's going on with $GME right now. They are introducing newcomers to the worst side of crypto, rather than the potential.



I've seen a few handful of posts considering $SLV a potential target, but liquidity and short interest are probably not even close as favourable.

It's also worth noting that the majority of r/wallstreetbets seem to agree / realize that the $GME squeeze is going to be a one time thing, although I wouldn't be surprised if parts of the community splinter off, looking for similar opportunities in the future (at least depending on whether the big squeeze actually happens).

yes, i was hear about that also yesterday , a retail trader vs elite trader , and of course , its kinda fun to watch, a new drama in the new year .


gold a different thing i guess, like a high liquidity, its will not easy.


probably, but at least they win , just see how the drama going, they seems just aimed for screw up the elite people.

If I had a RH account right now i would short the fuck out of that stock. I don't give af if that's a riot against the hedge funds or the financial system. That screams free money. They were aiming for $300-500 at first and then they started screaming $1000 lately i see them if they want to pump this to $60k because they calculated the whole wall street would go bust if they do so. What kind of drugs are they taking again?

If they want to wreck the wall street why don't they long gold? If all those people were longing gold instead that would cause much more harm.

As you said the company is initially worthless. Even if they pump it to $100k eventually it will return to 0.