Re:GME: Or, why we shouldn't underestimate “4chan with a Blo...
by imtringued on Wednesday January 27, 2021 @03:39AM
(#25925722)
>Wanting to move the price is sort of the smoking gun of manipulation.
That's the definition of shorting 100% of the float.
Borrow the stock of every active trader. Sell all stocks. Now the market looks like everyone, literally every single trader, is selling the stock and it is true because all of the actively traded stock was in possession of wallstreet who did indeed sell the stock.
People who are long in the stocks now get scared and sell their shares. That's how this strategy is making money for wallstreet. However, wallstreet kept shorting and shorting. From $24 per share to well below $3 and they never stopped shorting. They never closed their shorts even though going from $3 to 0 is only an extra $3 in profit but it massively increases exposure to a short squeeze and thus the potential for losses. They could have bought some options to cover their shorts and lock in profits at $6 and still have the upside of the stock going down to $0. They did neither.
It doesn't matter who buys GME. Anyone can buy the stock and go long and cause a short squeeze. Anyone. I think it is sad that I have to remind you that a short squeeze is not market manipulation. There is nothing to regulate except the short sellers and that is exactly why they try to find a scapegoat like WSB. When you fucked up and are about to get investigated just stirr up the media and control the narrative.
That's the definition of shorting 100% of the float.
Borrow the stock of every active trader. Sell all stocks. Now the market looks like everyone, literally every single trader, is selling the stock and it is true because all of the actively traded stock was in possession of wallstreet who did indeed sell the stock.
People who are long in the stocks now get scared and sell their shares. That's how this strategy is making money for wallstreet. However, wallstreet kept shorting and shorting. From $24 per share to well below $3 and they never stopped shorting. They never closed their shorts even though going from $3 to 0 is only an extra $3 in profit but it massively increases exposure to a short squeeze and thus the potential for losses. They could have bought some options to cover their shorts and lock in profits at $6 and still have the upside of the stock going down to $0. They did neither.
It doesn't matter who buys GME. Anyone can buy the stock and go long and cause a short squeeze. Anyone. I think it is sad that I have to remind you that a short squeeze is not market manipulation. There is nothing to regulate except the short sellers and that is exactly why they try to find a scapegoat like WSB. When you fucked up and are about to get investigated just stirr up the media and control the narrative.