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can someone explain this GameStop

BigBucnNole

Elite
Joined
Jan 15, 2021
Messages
2,158
As a 40 something white professional male who am I rooting for here ?

It’s a pretty select group of hedge fund managers that have the ability to manipulate the market and creat speculative bubbles. It’s a zero sum game and for them to gain someone else has to lose, and it’s nice to see them on the losing side. Markets should be investment based tide to a rational foundational base, not a handful of assholes lying.
 

Joe Kings

Legendary
Founder
Joined
Jan 7, 2021
Messages
2,896
There was a hedge fund that was shorting a stock. For a 5 year old, that means they wanted the stock to go down. The hedge fund was shorting the stock because they thought Gamestop was an old, antiquated business model that operated out of strip malls and sold video games on disc drives like cd-rom.

However, the hedge funds kind of got ahead of themselves. They were short more shares than actually existed. Basically they were way over leveraged.

As it turns out, Gamestop ended up making a deal with microsoft to distribute games electronically (not 100% sure about this part). Additionally, video games have really taken off during Corona as people dont havet much else to do while at home. At the same time Microsoft and Sony have come out with new consoles which draws customers to the Gamestop stores. Turns out Gametsop wasn't dead afterall.

So, Reddit users got to conversing and determined that Gamestop was undervalued and people should buy the stock. They were in a thread with over 2 million people in it, and they all decided to throw money at the GME stock. The other side of the bet was a hedge fund. As the stock started to rise because of redditors, the hedge funds were forced to close their bets that the stock would go down. In order to do that they actually had to buy the stock which extenuated the circumstnaces. So a stock that was trading $10 a share is now trading $300 plus.

TLDR: reddit nerds beat hedge fund at their own game and hedge funds are crying.
Go For them. F those Fn cakes that short stock. They all play with fake money. The Masses will always win. Then you have the biden Crew Commenting on it.
 

TheJunto

Poster
Joined
Jan 9, 2021
Messages
19
Here is a fantastic Twitter thread explaining the backstory on this. I, too, needed someone to explain it to me like I’m 5 and this guy does pretty well. For the record, the hedge funds shorted GME down from $20/share to $4, that’s when Reddit got involved. Holy mother fucking shit!


GME
 

shiv

John
Administrator
Founder
Member
Joined
Dec 1, 2020
Messages
14,169
Dude...i am in the same boat. For the life of me, I can't understand this one. I have a decent amount of cash lying around. It could have been me. Feels bad man.
For the few that make a killing off this, many more people are gonna lose their ass (outside of the hedgefund)
 

hmt5000

Legendary
Founder
Joined
Dec 10, 2020
Messages
7,382
Most of this crowd came over from tmb, so we might as well over-use the fuck out of shit here too. Just my 2 cents, take it with a grade of slaw.
I agree it was funny. But I have probably read or heard it pronounced that way 300 times the last couple days. It jumped the shark.
 

BigBucnNole

Elite
Joined
Jan 15, 2021
Messages
2,158
I like this coordinated counterfeit share theory on WSB. Hedgefunds got greedy, over played the production of counterfeit stock, WSB noticed something was fishy and bought to hold to fvck with them, unknowing of the counterfeit stock. Now retail investors own 100% plus of GME and risk exposing fraud of the hedgefunds that could potentially collapse the financial system.

 

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