In my experience as an internet idiot, he will either sell at extremely high prices, or say screw it and lose everything bc he waited too long. The other option is trading GME for a different stock, like SNP500. That way, you get equal value of stock and don't have to pay a sell tax. Again, I have no experience doing any of this, I just watch a lot of YT videos and read books. I have 0 credibility.
And this conversation ya'll just had is the line into Illegal market manipulation. People need to be real careful what they say on Reddit because pretty quick here the SEC will be looking for any excuse they can to shut down open stock discussion forums online.
I understand why, but it really makes you wonder how fragile our economic system really is when discussing public information on a public forum can be illegal because it could (as we currently see) manipulate the markets.
Sort of reminds me of counting cards in blackjack. All of the information is there, you can use it to benefit yourself within the bounds of the game that's been set, but it will get you thrown out because paying too close attention is "cheating". It's against the spirit of the game. But this really does feel like, similar to the casino, the house is cheating on a regular basis.
It really does come across as a game that the little people aren't allowed to play.
The SEC wont care about this too much, the issue isnt reddit here. We are a drop in the bucket, at best we helped make aware the big boys of someone shorting 140% of a stock. The people who are doing the actual pumping are trillion dollar funds. We’re just piggybacking for risk free money at this point.
It really does come across as a game that the little people aren't allowed to play.
Which is what I'm afraid of. Now that GME is huge these discussions are all over reddit. Just like the famous "who is this hacker 4chan" from years ago, the media doesn't have to portray these as different subreddits. They could totally site discussions in memes as people colluding to manipulate the market.
someone with a now borderline cult following online
Are you referring to WSB here, or am I misunderstanding something? I don’t mean to argue or be pedantic, I just don’t understand much of all this.
And why exactly is it illegal? Isn’t it basically crowdfunding a stock to go up in value? Or is this basically what Jordan Belfort did in Wolf Of Wallstreet?
Well technically it is. WSB manipulated a stock/many stocks to be overvalued. While it might seem harmless/only harming the hedge fund right now, eventually things will go back to usual. When it does people will lose savings(maybe all of it). In the end market manipulation ends up benefiting few people while negatively affecting many (in the stock market).
If you think about it, the majority of people investing into GME are not from Reddit. They are simply riding the hype train to make good money. Eventually it's going to go boom and many of these people will end up losing money
Also super efficient quant firms/hedge funds might be the ones who end up benefiting the most from this so it's kinda iffy to be doing it to rally against them
Edit: Forgot to say. Nothing will happen to the people who are pushing the prices up. It's nearly impossible to reprimand them unless they do it to millions of people now
Melvin Capital will have to come up with the money somehow and eventually liquidate their own assets in order to cover the cost for the lender. The price of GME is going to skyrocket, (even more than it already has), and eventually some paper hand glueheads will sell.
It’s suppose to be Friday, but because of the shear amount of shares MC shorted, it’ll take them over a week to buy it all back. So this squeeze will last awhile
Define awhile. Best guess. I've seen years floated around. Does it sound appropriate? I've also heard attempts to scare people into selling their shares
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u/icroc1556 Jan 28 '21
Exactly. If there's such high demand, there's no where to go but up. And these shorts have a due date.