GME / Wallstreet Bets
Can any current hedgefunders share thoughts on the current Game Stop / WallStreet Bets short squeeze situation?
Mod Note - See more WSO discussions on GME:
What's next after GME? A Discussion.
Reddit Shuts down WSB for "hate speech"
Finally, the GME clown fiesta is over
COHEN'S POINT72 LOSES 10-15% AMID HEDGE FUND LOSSES THIS MONTH
pretty simple: read about mismatch in # of borrowable shares vs. true non-stagnant float vs. shorted shares, what happened in 2008 with Porsche/Volkswagen and how some underestimate the power of many tens or hundreds of thousands of retail accounts, being assisted by HFTs, buying anywhere from $5000 to $1mm+ of this shit during mania moment in market.
S3 Partners has short interest of available float still WAY above 100%...
How exactly does this work?
If a stock has short interest above 100% of float, does that basically mean that all the extra % are naked shorts?
No, SEC is strict on naked shorts.
Let's say you own 100 shares of BA. And then let's say you lend your 100 shares to me so I can sell them short. I go ahead and sell those 100 shares to Jack. Jack is brilliant like you, and he proceeds to do the same thing: he lends his shares to Jane, and Jane sells those 100 shares short to Jill.
Throughout this whole process, there's only 100 shares, but there have been two short transactions. Mathematically, it looks like 200 shares have been shorted. Jane and I would each need to buy 100 shares -- there were two short transactions, so now there must be two buy transactions -- to cover our positions. Normally, when there's a lot of time between transactions, that's not a problem (Jane buys back her 100 shares, returns them to Jack, I buy back my 100 shares from Jack, return them to you); but in a short squeeze, Jane and I are trying to buy 200 shares when only 100 actually exist. Note at no point, though, were the shares naked.
The reserve requirement / money multiplier functions similarly to expand or contract money supply.
I don't know the actual parties involved, but a friend of mine at a MM speculated that the spike noon-1 was someone's fund getting blown up. Fs to pay respect boys.
No F's for institutions. Should watch their back.
You're right, screw em. I hope we see it go to $1000!
i keep seeing MM what does that mean?
Multi-manager. Platforms where multiple PMs manage independent leveraged sleeves of capital with strict draw-down and vol requirements like Millennium, Citadel, Exodus, P72, etc.
Edit: Why the heck did people toss shit at this? He asked me what I meant by MM, and I was referring to a friend at a MM hedge fund not a market maker.
market maker (Citadel, 2 Sig, etc)
Any thoughts on the relative impact of the reddit folks vs. actual funds piling in today / yesterday?
They are saying that they are locked out because the hedge funds contacted the brokers and locked them out purposefully.
Where I am confused is. It looks like the GME is so illiquid and the reditors have broken the market. If the market is broken, then you need to halt trading to fix it (ie circuit breakers as one example). I agree that if they are just blocking them out to block out traders that's wrong. but if all these shares are trading and not enough liquidity is in the market to clear orders what happens. I imagine fixed contracts need to trade first. thus Options and Shorts get filled first then you can repoen to buying. I know usually orders are a first come first serve, but it seems fishy that no one would step in to try and assist the market with liquidity.
Nothing to do with GME's liquidity or collusions. That was entirely due to funding requirements at the brokers' end.
The shit is hilarious, I don’t get how some of these people won’t get SEC cucked. Legitimately pumping this stock 50%+ in a single day and absolutely shredding whoever had shorts on.
My guess is that borrows were virtually non existent mid day and institutionals were trying to get anything long on they could. Also LMAO at the reddit post today telling people to opt out of any securities borrowing programs with brokers
they won't though.... look up lumber liquidators situation ~1 year ago... same thing on a much smaller scale.... you think the SEC in today's day and age is going after retail investors posting memes and pumping stocks?
I'm sure MMs have set up some controls after Friday. This is pure comedy though. Full retardation from reddit yolo'ers could potentially save the company....if they take advantage of this and sell stock right now at these prices they could easily wipe out all the debt.
WSBers are just a factor of the momentum, the driving force is ECOM Stud Daddy Ryan Cohen 🚀🚀🚀 Read up on what he did with Chewy and what some of the turnaround theses for GME look like with him at the helm.
Edit: Toss more shit you hedgies, you got caught with your flank exposed by a bunch of retail investors armed with stimulus checks and free time. You should feel embarrassed, and I will thoroughly enjoy buying a new Lambo this weekend courtesy of your LPs. I hope none of you were expecting bonuses ;)
WSB infiltrating... it's all over now
This is ridiculous. There is no turnaround for GME... it is the "blockbuster" of 2021. They have 5,500 plus stores dedicated to selling video games, which will be 99% digital in a few years. What is left, silly gaming merchandise and esports jerseys? You don't need 5,500 stores for that...
WE LIKE THE STOCK
Where's your Lambo?
Hopefully you still have internet connection at the homeless shelter
This is a total joke. There is nothing fundamental about GME's move to nearly ~$400. The reversion back into the world of sanity this week is proof of that. This is a massive group of retail investors pushing the needle.
I find it absolutely hilarious that a bunch of retarded psychos on reddit are blowing up legitimate investors at hfs with this shit. imagine spending your entire life honing your craft of investing, only to have a bunch of maniacs meme a stock to the moon and wreck you
Ur moms a whore
#triggered
Well on the contrary...
If you're getting your fund blown up by a bunch of children on Reddit, you're a fucking hack and deserve to have your career wrecked.
This comment makes me LOL every time I read it.
It's like efficient market hypothesis gave way to YOLO market hypothesis, and nobody knows what to do anymore.
It's still the market being efficient, the measurements of value just changed
https://www.wallstreetoasis.com/forums/wsos-rwsb
If you think these "institutional" guys at hedge funds aren't exactly like the retards on WSB then I'm about to shatter your world. Don't put these momentum monkeys on a pedestal, there's way more encouraging each other to pile on and push stuff around to make a quick buck than you can ever imagine. They're just gambling other people's money.
forgot i made this post a year back but i dont disagree. HF performance constantly underperforming S&P should say everything
If you're a HF PM who's short an illiquid, highly shorted name trying to get greedy and play for BK, maybe you deserve to get blown up like this.
What does BK mean in this context?
Bankruptcy
Isn't there a short to be made now?
could've said the same thing yesterday. interesting to see how this unfolds.
Yes, they've been increasing their short position heavily. Stock has so much further to fall now and they think they can fight the sentiment. This just increases the impact of a squeeze though, so much for being smart managers. I guess they didn't pay attention to Tesla.
Can’t get borrows anywhere
not until the first one unfolds
+1
I think it’s hilarious. Some guy on there turned $50k into $11M, no joke. (Reddit.com/u/deepfuckingvalue)
But unfortunately the SEC is going to get involved with this at some point and WSB will be shut down by the end of the year. They’ve flown too close to the sun by getting all this attention in the mainstream media.
You think the SEC is going to try to pop a hole in retail investors enthusiasm about the market? That would just feed the idea that it’s not a level playing field - exactly what the current administration doesn’t want
This, this, and more of this.
What is the SEC going to say. Hey you individual investor. You can't buy stock in a company for a price you want?
The SEC has minimal power here.
Not exactly. The role of the SEC is to bring legitimacy and stability to the market, which this provides the opposite of. Money Stuff had a great blurb on this today, I highly recommend you check this out. The SEC probably won't pursue this, but they do have an actual case.
Perhaps the SEC will find a creative way of resolving this type of issue. Perhaps setting rules to which degree companies can be shorted. Wasn't GameStop shorted twice as many times as there were actual shares outstanding? This type of rule would prevent such extreme short squeezes going forward.
They'll go somewhere else. Telegram, random forums, etc
Glad someone got rich by gambling.
DFV didn't gamble. He's been following GME since last spring.
the SEC from China?
and you have professors still claiming markets are efficient
"It was priced in"
Ryan Cohen supplied and we have demanded
YOLO market hypothesis is taking form
Even though I don't believe in the EMH, it still explicitly states markets are only efficient in the long run and in times of volatility, you will see a greater than normal disconnect between the market and reality.
This is worth a bump lol.