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Redditors gave Wall Street traders an absolute pasting

Titus said:
Will be scenes when people are trying to sell and can't access or execute anything on these free app platforms :lol:

Server errors and tears all over the place
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Unfortunately I think you are completely correct. Just watched a piece on the news with the commissioner calling for a 30 day freeze!!
 

Bukowski said:
All short positions passing the 0.5% threshold are freely available here:

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Again - happy to be corrected - what's the difference, legally not ethically, if 2 million PIs get stuck in collectively and buy 5 shares each, or one or two big institutional investors buys 10 million themselves in a series of Buys. It'd still in effect cause a short squeeze with the shorters scrambling to cover their positions, no?

Securities are being (just about) legally pumped on forums (not just Reddit) and social media every single day, it's just this time enough collective action has been taken to cause some heavy losses to those who seemingly hate to be played at their own game.

All that said - those still buying into Gamestop especially right now while it's at the top are in for a very rude awakening and likely very heavy paper losses. Not good.
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OK, my take is as I said earlier, it's not the amount of investors, it's the 'joint' decision making aka a concert party.

If 2 big institutional investors got together over dinner and agreed *together* to *both* short/buy a stock, that is collusion. I'm sure it happens but it is not legal, so if youre caught you go down - and the SEC and the US are pretty fearsome at going after bad guys... *not* like over here where the FSA et al are a complete slap on the wrist- if they can be bothered to shift their arse.

The Redditors are acting as one, in concert, as they all agreed *together* to buy and keep buying, most of the /r/wallstreetbets leaders are constantly exhorting their followers to 'hold at all costs', do not sell etc.

When it comes time to sell, the last ones to realise, the 'bagholders' will be well and truly screwed.

If/as/when the hedge funds have bought and realised their losses, there is a mountain of stock waiting to be released and sold into the market..
 
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The Albanian said:
Yeah I know. I only wanted it for the ottoman. Taking that to the one I've just bought in Southampton. Just waiting for the guy in there to be ejected by bailiffs
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seems a bit risky buying a house just for an ottoman. should have waited til he had a yard sale and got it on the cheap.
 
Lefty Frizzell said:
Unfortunately I think you are completely correct. Just watched a piece on the news with the commissioner calling for a 30 day freeze!!
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I'm on about the platforms not being able to cope with the volumes. 212, Etoro and Robinhood were all down at least in patches yesterday. I imagine loads involved in this will be using similar free to use apps and they'll inevitably crash all day when it's time to sell
 
Titus said:
I'm on about the platforms not being able to cope with the volumes. 212, Etoro and Robinhood were all down at least in patches yesterday. I imagine loads involved in this will be using similar free to use apps and they'll inevitably crash all day when it's time to sell
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Sorry, yes I agree on the pending platform issues. I can see these coming in to play if the commissioner dies not get the 30 day freeze initially.
 
sedling said:
OK, my take is as I said earlier, it's not the amount of investors, it's the 'joint' decision making aka a concert party.

If 2 big institutional investors got together over dinner and agreed *together* to *both* short/buy a stock, that is collusion. I'm sure it happens but it is not legal, so if youre caught you go down - and the SEC and the US are pretty fearsome at going after bad guys... *not* like over here where the FSA et al are a complete slap on the wrist- if they can be bothered to shift their arse.

The Redditors are acting as one, in concert, as they all agreed *together* to buy and keep buying, most of the /r/wallstreetbets leaders are constantly exhorting their followers to 'hold at all costs', do not sell etc.

When it comes time to sell, the last ones to realise, the 'bagholders' will be well and truly screwed.

If/as/when the hedge funds have bought and realised their losses, there is a mountain of stock waiting to be released and sold into the market..
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Well explained. In your view there is nothing illegal (yet) about the Reddit crowd’s strategy?

Would the hedge funds and shorters be crying to the SEC if it was one institutional investor taking them on rather than “the dumb money” I wonder...
 
Bukowski said:
Well explained. In your view there is nothing illegal (yet) about the Reddit crowd’s strategy?

Would the hedge funds and shorters be crying to the SEC if it was one institutional investor taking them on rather than “the dumb money” I wonder...
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I definitely don't like hedge funds, so the schadenfreude is great here.. :lol:

The trouble is these things always end badly 'when the music stops'

The market (certainly in the US), is just a casino at the moment because the Fed just keeps printing money, and it has been flowing into equities..

Many stocks are just instuments to gamble on (that they rise..), look at Tesla, UBER, Lyft, Pinterest, AirBnB... it's all 'jam tomorrow'...

...except tomorrow is priced in as 20 years of future cashflow and profits !!

Loads of 'retail investors' in the US have never seen the market go down, or stock prices tumble..
 
Surely, if the fund that is shorting goes bankrupt it's not only the Wall Street workers who will suffer, but also the regular investors who have trusted them to manage their investments? I'm not sure how comfortable I am celebrating any sort of situation where people lose out financially.
 
monkeytassle said:
Do you mean Jim cramer the market manipulator?
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I get the feeling you are deviating here from actually answering the key question of what is illegal or under the remit of current SEC rules.

Is their evidence of false claims (not just this share has gone up 100% buy now)? No. Could you prove that in the probably 100M + Reddit board posts that any specific false claims influenced buyers? No. Could you claim that other investors bought shares not because of Reddit but because the share price was going up massively and people like Musk were tweeting about it? Yes.

Nigh on impossible under the current SEC rules or law to create a cause and effect that this is fraudulent market manipulation under the current rules.
 
monkeytassle said:
It's exactly what they did. Seems people don't much like rules. I can tell you one thing I wouldn't fuck with the sec.

A group of individuals, be it 16 or 2.8m are colluding to live the price of a security.
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They're participating in a market and using the inherent nature of a market to achieve a return. The only thing influencing the price is their own investment. I really cannot see anything wrong with this.

It seems to me that the affected hedge funds could have bailed out, with a small loss, as soon as they saw this happening... there will have been red flags all over their screens. However, they decided to sit on their hands and make a bad situation catastrophic, truly stupid behaviour.

Mind, I think this will be a short-lived phenomenon. All it takes is for one hedge fund to be unable to meet its commitments and a lot of people will be left with egg on their faces as well as a load of worthless stock. I wouldn't touch it.
errant said:
Second hand powerboats on martha's vineyard are probably going fairly cheap if the wallstreet mob are potless...
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A not so interesting fact: that's where Jaws was filmed.
 
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Horatio Moustache said:
Surely, if the fund that is shorting goes bankrupt it's not only the Wall Street workers who will suffer, but also the regular investors who have trusted them to manage their investments? I'm not sure how comfortable I am celebrating any sort of situation where people lose out financially.
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I think the pleasure here derives from shorters generally feeling zero remorse in driving the price of other securities (which regular investors are also invested in) into the ground for their own huge gains.

We’d never have even heard of GameStop if not for this Reddit bonanza. The shorters in question were on YouTube bragging about their position, with the express intent (IMO) in causing the SP to drop on fear. If not for Reddit, those same funds involved in shorting Gamestop to zero $ would have otherwise walked away with a tidy profit for shady (but not illegal) grift and moved onto the next target. Regular GameStop investors left with huge paper losses. Not much sympathy tbh.
 
sedling said:
OK, my take is as I said earlier, it's not the amount of investors, it's the 'joint' decision making aka a concert party.

If 2 big institutional investors got together over dinner and agreed *together* to *both* short/buy a stock, that is collusion. I'm sure it happens but it is not legal, so if youre caught you go down - and the SEC and the US are pretty fearsome at going after bad guys... *not* like over here where the FSA et al are a complete slap on the wrist- if they can be bothered to shift their arse.

The Redditors are acting as one, in concert, as they all agreed *together* to buy and keep buying, most of the /r/wallstreetbets leaders are constantly exhorting their followers to 'hold at all costs', do not sell etc.

When it comes time to sell, the last ones to realise, the 'bagholders' will be well and truly screwed.

If/as/when the hedge funds have bought and realised their losses, there is a mountain of stock waiting to be released and sold into the market..
Click to expand...
I wouldn't be surprised if you scratched the surface and there are a handful of ringleaders. I don't think it's too big a leap to assume that some of the more respected/influential posters on a share dealing forum have some sort of inside information and maybe are connected to banks/hedge funds etc.
I have no sympathy for people who short stocks, but I'm not convinced that there are any good guys in this. There will be some innocent patsies losing out big whilst those who encouraged them to buy are making huge profits.
I find it mildly amusing as I'm nowhere near it but there's a long way to go in this story yet.
 
sedling said:
I definitely don't like hedge funds, so the schadenfreude is great here.. :lol:

The trouble is these things always end badly 'when the music stops'

The market (certainly in the US), is just a casino at the moment because the Fed just keeps printing money, and it has been flowing into equities..

Many stocks are just instuments to gamble on (that they rise..), look at Tesla, UBER, Lyft, Pinterest, AirBnB... it's all 'jam tomorrow'...

...except tomorrow is priced in as 20 years of future cashflow and profits !!

Loads of 'retail investors' in the US have never seen the market go down, or stock prices tumble..
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last march?
 
chunkylover53 said:
I have no time for short selling personally. But let’s not pretend this is the proles making money over a hedge fund. The vast majority will lose out when the share price inevitably crashes. It will, because it’s not worth it’s current valuation
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Youre right, but it’s nice to see them squirm like buggery.
Market Where? said:
Sell it - then buy £100 worth of the other ones
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He’s not even bothered tbh, expecting to lose it.
 
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