How GameStop found itself at the center of a groundbreaking battle...

This is some pretty crazy stuff!

Apparently, all Elon Musk did today was change his Twitter bio to #bitcoin and caused a massive short squeeze on BTC. I don't know what his bio said yesterday...I usually don't pay much attention to his Twitter.




https://elevenews.com/2021/01/29/elon-musks-6000-bitcoin-pump-just-liquidated-420-million-of-shorts/

 

Elizabeth Warren made comments today, showing that she is definitely on the Public-Private Oligarchy government's side against the people and small retail investors.

Meanwhile, AOC and Ted Cruz are both siding with the people against the elites on Wall Street and [checks notes] in full agreement with each other.

Politics makes strange bedfellows.

 

Or so you hope. The hedge funds will have to cover their shorts slowing the stampede. Some people will lose money. A lot will make money.

 

That's not my read. These hedge funds bear raid companies like GameStop and kill them, all the time. Unless they have the vast amounts of capital to destroy the destroyers, they are selected victims are dead meat. Not this time.

I'll give you a current example for illustration of the cut throat market manipulation that is engaged in all the time and nobody says squat:

Masayoshi Son Rewards Top Execs With Massive Loans To Help Pump SoftBank Shares.

Zero Hedge, before the GameStop business, called out SoftBank for using an options-trading strategy that was partly responsible for driving huge gains in the ENTIRE Nasdaq index (which, in turn, bolstered SoftBank's bottom line) (and, in turn, bolstering both SoftBank and many of its top positions).

SoftBank made billions with a massive gamma squeeze. But now that a similar squeeze has made GME (GameStop), SoftBank has shared another piece of the puzzle in its annual report.

The FT reports that a year ago, four top SoftBank executives are sitting on a collective gain that could be as large as $1.2BN after they were each loaned hundreds of millions of dollars to buy the company's fast-rising shares.

Last year, SoftBank granted a total of $600MM in loans to four top executives: Rajeev Misra, head of SoftBank's infamous Vision Fund, Marcelo Claure, currently the head of SoftBank Group International, Katsunori Sago, SoftBank’s chief strategy officer, and Ken Miyauchi, recently promoted to president and CEO (Nikkei targeted Miyauchi in a glowing profile published Thursday).

These men then stepped down from SoftBank's board so that the company would not have to disclose these compensation schemes.

The SoftBank Bandits.​

So as SoftBank's share price is languishing and falling, they loan these guys $600MM to buy their shares:

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They buy, which drives up the price, which attracts other buyers to the momentum, they sell to these they attracted, watch for a price dip, buy again, and continue this, in the process, tripling the stock price, repaying the original $660MM while taking a sweet profit of a net $1.2B.

Now, if someone tried a bear raid on SoftBank with this kind of money to loan to make you eat your shorts, you would get killed trying to kill them. That's all that happened with GameStop. The killers moving in, thinking they saw easy prey in a failing Brick and Mortar store, failed to see the crowd in the bushes with the collective juice to kill them, while they were trying to kill the otherwise helpless GamesStop.

Now this goes on ALL THE TIME and little is said about it, certainly Social Media doesn't start banning, brokers don't start liquidating positions that look like they will become "too profitable"! The Biden Administration, Pelosi, and Yellen don't suddenly start issuing press statements about "greater regulation". No. If GameStop had simply been murdered by the Hedge Fund bear raiders, everyone would have been just fine. The only thing different here is that the Hedge Fund Bears got killed instead, and they are big political donors, and they pay Yellen nearly a $MM in speech fees, and they were connected to the start up of this Robin Hood app that was enabling these young folks to trade, and all of a sudden we have a coordinated assault on these kids, because they aren't part of the coordinating colluding "in group" that apparently has exclusive rights to murder brick and mortar stores like GameStop.

And as these Brick and Mortar retailers are murdered, Amazon picks up the business. Now, I don't see where Amazon was involved in putting the choke on these kids, but, I think you can see where this obviously leads.

This is a hell of a time for the virgin act, where were you when they were happily murdering GameStop?

Damn right. I HATE Cronyism.

Fake News. You should study up on the difference between rent-seeking and profit. For all the Virtue pretension of Socialists they are nothing more than Rent-Seekers, in practice.

So what? So we should save the Hedge Funds from what they do to others, every day, because the folks taking them down, might become like them? What if they don't? What if instead, they only make the Bears a little more reasonably cautious because apparently they cannot see all the potential threats to their planned predations?

This isn't the brightest comment in your post. You feign outrage at the 1%, but when push comes to shove you are for the rigged control of the entire system that allows them to unfairly feed on the work of everyone else.

Rigged Social Platforms
Rigged Financial Systems
Rigged Voting Systems
Bought Politicians
Bought "Regulators"

Guarded by an elite group of coordinating incestuous insiders made of the Deep State, Hedge Funds, Fake News Media, Corrupt politicians, and Massive Social Media Corporations.

The rest of us are for breaking them up and bringing all of them back under the Lawful Constitutional Control of WE THE PEOPLE, the only legitimate source of just government power in our system.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed.​

• Never forget WHY we have a government, it is to mutually secure each other's rights.

• Never forget that government has only one legitimate type of power, JUST power. Unjust power is illegitimate no matter who wields it, whether it's government or anyone else.

• Never forget WHOSE power government exercises. They have no inherent power, only we do, and the authority they exercise is not their own, it's derived from us, and it continues to belong to us, even when we temporarily grant it to our representatives for specific purposes.

We have some potential common ground here, and we need to get after it. Vigilance is the price of Liberty and Freedom. Divided 50/50 leaves us helpless before them. Finding common cause where we are 65/35 and suddenly the whole situation changes, and rapidly. Let's use our collective heads and get some worthwhile things done, in a lawful, orderly and constitutional manner.

As for GameStop? One more thing. Robinhood was not the outside player they pretended to be. They were formed and created by insiders and when push came to shove, they revealed themselves, not as Robinhood, but as the Sheriff of Nottingham. As a result they had quickly collected a hundred thousand negative reviews, which pushed their google star rating to the floor. Well, the Oligarchs protect their own. Google just deleted a 100,000 negative reviews of the Robin Hood app.

Enough is Enough

 

Quantum must be heart broken....

 

I hope everyone wins....except the hedge fund managers. (Of course, people will lose money if they stay in too long.)

 

Well just think if you were as smart as those dumb reddit trumpsters' you would've made around $200 - $300 per share, something tells me your crying not laughing.

 

He is like the loud mouth at the pickup basketball court that says your every shot made is "luck" but then has an excuse or cries foul when he misses.

 

I've been saying for a very long time (longer than I've been a PF member) that the populists on both sides, the Squad and the Trump supporters, have quite a lot of common goals. Both are for the people taking back power from a corrupt government Public-Private Oligarchy. Obviously there is a huge battle to be fought between the Socialists and the Capitalist after the Oligarchy of Power is defeated. That is the first battle to be won.

People who still think this is Democrats versus Republicans either haven't been paying attention, have been fooled by media, or they are on the side of our Totalitarian Oligarchy over the people.

 

I don't support ceding the field to these bastards. I support remaining engaged. They are working a Class Action Lawsuit against all these crony clowns, and I think that is the right approach. Bury these sonafabitches in lawsuits, make them provide sworn testimony explaining EXACTLY what they did and why, and open they up to those that it looks like victimized and allow them to compel the production of evidence.

There are legal foundations forming all over to combat this abuse, they might be worth looking into and financially supporting with charitable giving if you're a mind to.

 

And these folks have enough money to buy their way out of it. They do not care.

 

That final sentence captures an important point. Despite what folks claim, many are actually monarchists, though not in the traditional sense, but, they do not trust self-government, they are in their heart of hearts supporters of Totalitarianism.

 

They absolutely do care.

One of the hedges lost 19% of their value (around $3b), practically overnight.

 

They don't have this kind of money. These kids broke a HedgeFund by forcing them to eat their shorts. There are several others teetering. Essentially their broker closed out their positions because it would have broken the broker had they not been prematurely closed out. The amount of financial damages this could amount to could easily be enough to drain all their insurance coverage and bankrupt them anyway. And, if what they did was illegal, it very likely wasn't insurable.

Do not doubt that we are talking about "company breaking" amounts. They never would have acted in this fashion is this was about any smaller amounts.

 

How would shorting a stock kill a company?

 

I subscribe to Anthony Pompliano's newsletter, yesterday he circulated this, quite touching and sums up I think how the majority of people feel about the hedge funds & wall street bankers

 

And, it's likely not over.

JPMorgan Has Some Bad News For Hedge Funds Hoping The Nightmare Ends Soon.

It seemed that the r/WallStreetBets and their crusade to teach Wall Street billionaire bullies a lesson was choked out. Several exchanges banned buying in the most-shorted stocks, an unprecedented unilateral decision made by brokerages (one of which, Robinhood, is effectively joined at the hip with hedge fund Citadel, which in turn is a part owner of Melvin Capital which was destroyed by the short squeeze that Robinhood banned, so a clear conflict of interest), this coordinated action sent GME stock as low as $112 after trading at $500 just hours earlier.

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The hedge funds short Gamestop, who thought they could now buy back the shares they need in the $100 range rather than the $500 range, waited figuring that if it dropped to $100 maybe it would drop back down to $10, but then

Any victory for the WallStreetBets crowd means the short squeeze is back,

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As the price of the stocks the Hedge Funds shorted goes up, the value of the Hedge Funds goes down.

So, what's the end game?

Well, here's another wrinkle: First let's review.

1. The Hedge Fund sees a wounded company and decides to make money killing it, money that comes from the "greater fools" who own the stocks or buy the stocks as they are killing it.
2. The basis of the trade is the company's own shares, which the Hedge Funds "borrow" and then sell, which drives the price down, they buy back the shares at the cheaper price, rinse repeat, and at some point return the shares they borrowed while they pocket all the all money they received in stock sales while they were driving the share prices into the ground.
3. This all goes belly up if the shares rise in value, because at some point they have to give the shares back to the broker they borrowed them from. And if they borrowed and sold at $10 and it costs them $500 per share to buy them back, that's a lot of money. And unlike regular stock investing where the most you can lose is your investment, in this investment strategy, the amount of your loss is infinite.

So the new wrinkle. Sometimes brokers loan out more shares than they actually have, these are known as "synthetic" shorts. Which also means there easily could be more shorts out there than shares, which makes the potential overall exposure difficult to calculate.

Now these synthetic shares have to be returned as well. And since they don't actually exist, the only place for the bear raiding hedge funds, who thought they were going to happily murder GameStop, to get them is from the company they were intending to murder!

zerohedge

@zerohedge
The only wait out of this for the shorts may be to beg for the company to sell them stock. And GME can name any price

zerohedge

@zerohedge
We Have Some Bad News For Gamestop Shorts https://zerohedge.com/markets/we-have-some-bad-news-gamestop-shorts

In other words, any expectation that the WSB crowd would be finally crushed today and the hedge fund world would return to normalcy was, instead, crushed.

JPM's Andrew Tyler writes in his EOD market intelligence note, "Are we there yet" -i.e., is the squeeze over - is "the biggest question and hardest to answer definitively."

His take can be found at the link.

https://www.zerohedge.com/markets/jpmorgan-has-some-bad-news-hedge-funds-hoping-nightmare-ends-soon

In "short", these Bear Raiders can expect much more pain. No surprise there. What is more shocking is that just yesterday another JPMorganite, Marko Kolanovic published a note urging clients to do just the opposite, BTFD (Buy The Fkn Dip), claiming that the WSB fiasco would be over soon and won't have any material impacts.

Who are the poor bastards following JPMorganite, Marko Kolanovic?

 

You keep saying this but I don't get it. Gamestop the company doesn't make or lose money on the stock price variations, it's the people who invested in them that are getting the shaft. It's not like GS will file for bankruptcy protection because a hedge fund is betting against them, right?

 

I think it has to do with when the short is leveraged at more than 100%, in this case I think it was 130%... not sure haven't really looked at exactly what happened...anyone?

 

Well yeah, but the physical company isn't affected one way or another, right? GME made their money during their IPO when they sold all of the stock. After that, the price of the stock only affects the investors. I'm new to this so there's probably something I'm missing but I don't think the hedge funds were affecting gamestop one way or another - other than their ability to raise funds by selling more of their stock.

 

"This Is For You, Dad": Redditor Shares Heartbreaking Reason For Destroying Short-Sellers In WSB Raids.

Another commenter clearly pulling for the rigged game, the insiders, the corrupt collusion and the hedge funds, claimed that it was "greed" driving these young traders. He didn't share just what the hell was motivating the marauding Bear Raider Hedge Funds that were intent on happily murdering the Brick and Mortar GameStop.

Reaching beyond the colluding cronies in the US try to save their Hedge Fund political donors and paymasters:

This is for you, Dad.

I remember when the housing collapse sent a torpedo through my family. My father's concrete company collapsed almost overnight. My father lost his home. My uncle lost his home. I remember my brother helping my father count pocket change on our kitchen table. That was all the money he had left in the world. While this was happening in my home, I saw hedge funders literally drinking champagne as they looked down on the Occupy Wall Street protestors. I will never forget that.

My Father never recovered from that blow. He fell deeper and deeper into alcoholism and exists now as a shell of his former self, waiting for death.

This is all the money I have and I'd rather lose it all than give them what they need to destroy me. Taking money from me won't hurt me, because I don't value it at all. I'll burn it all down just to spite them.

This is for you, Dad.​

We never saw justice after the 2008 crash. Between the Administrations of Dumb and Dumber, all the fat cats except Bernie Madoff managed to get off scot free, even got "bonuses" after the only thing that kept them from going belly up was the massive taxpayer bailouts. Oh wait, Fkn Lying Jim Comey did manage to jail Martha Stewart.

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The company is affected when the hedge funds drives the value of their stock down by shorting them, then going on CNBC and telling everyone how crap it is... only to buy back in at a lower price later

 

I can see how that would affect investors but still not seeing how it affects the company.

 

I'm 100% cheering for these Reddit traders, one for the history books... a rare win for the good guys during the most corrupt era in humanity's existence.

 

the value of your company's stock affects the company, high good, low bad

here

How does the performance of the stock market affect individual businesses?
https://www.investopedia.com/ask/an...stock-market-affect-individual-businesses.asp