David Costing Goliath Billions

Eventually GME will come back down to earth, it has too, it's not a sustainable business in our current climate of digital downloads.

There was a stock a few years ago that did this same thing and it was halted for like 60 days. Everyone lost. Does anyone remember that? It ended up getting delisted while still halted and everyone lost everything they had invested except the very few that sold out before it went "grey".

a reply to: litterbaux

Yea of course it will come down. But for now these shorts are panicking. Funny thing is they have to keep buying to hedge.

The losses appear to be tremendous. Shorts appear to have lost $3.3 billion betting against GameStop so far this year, according to MarketsInsider. Of those losses, $1.6 billion, or about half, happened on Friday when the stock jumped 51%.

www.google.com...

a reply to: FauxMulder

Do you remember the last time this happened? I want to say it was Tilray or something. Movie Pass did something similar but never got the 60 day halt, it just died a slow painful death.

originally posted by: FauxMulder
It's true. Elon helped. Also another billionaire who hates short sellers jumped in on the action.

How much was it that the Pelosi's recently invested in him? I heard a million dollars ... but then someone reporting qualified that as, "a million dollars on a single day in December."

Help me out here, Brother. Why all the attention on this one little software seller? Do they even turn a profit these days?

a reply to: FauxMulder

It's great, the stock market version of c-blocking someone.

a reply to: litterbaux

Is this what you are referring to? Tilray

On Wednesday, Tilray's stock gapped up sharply to open at $233.58 a share from Tuesday's $154.98 close. The stock hit an intraday peak at precisely $300 a share late in the trading day before reversing abruptly and making a swift descent that quickly triggered the first of what would ultimately become five trading halts on Wednesday afternoon. TLRY briefly dipped into negative territory for the day, with an intraday low established at $151.40, as trading was repeatedly halted and then resumed.

Short sellers that have been hurting from the parabolic rise in the company's shares saw some reprieve today. According to data from S3 Partners, Tilray shorts made $300 million after 2:30pm as the stock dropped, though still ended up with mark-to-market losses of $208 million for the day.

Similar situation.

It'll be interesting to watch this play out.

originally posted by: Snarl

originally posted by: FauxMulder
It's true. Elon helped. Also another billionaire who hates short sellers jumped in on the action.

Help me out here, Brother. Why all the attention on this one little software seller? Do they even turn a profit these days?

Do you mean game stop? It's not about them being a good company (though the founder of Chewy is involved and trying to turn them around now) its about sticking it to these shorts.

originally posted by: AugustusMasonicus
a reply to: FauxMulder

It's great, the stock market version of c-blocking someone.

It's particularly funny considering this tweet they sent out.

Also, it's back up

a reply to: FauxMulder

Wow, that's classic. Looking forward to more carnage.

Is this what eating the rich looks like?

a reply to: FauxMulder

Yeah, I guess my memory serves me today. It was then halted for an extended period of time so everyone lost in the end.

Same thing will happen here.

So here’s a dude who has made $22 million off of this. I’m not a wall street expert so there’s more information found within the Reddit post. But this guy is a legend.

www.reddit.com...

originally posted by: Assassin82
So here’s a dude who has made $22 million off of this. I’m not a wall street expert so there’s more information found within the Reddit post. But this guy is a legend.

www.reddit.com...

I would be so tempted to cash out.

originally posted by: Ohanka

originally posted by: Assassin82
So here’s a dude who has made $22 million off of this. I’m not a wall street expert so there’s more information found within the Reddit post. But this guy is a legend.

www.reddit.com...

I would be so tempted to cash out.

If I read it right he made an initial investment of $50K. I think anything over $20,000,000 is a safe time to sell. But that’s just me. Lol

a reply to: FauxMulder

The hedge funds left themselves over exposed.

Some of these stocks had more shorted shares than shares outstanding.... The fact they allowed themselves to be in such a position one equity could topple them is telling and a very big problem.

Melvin capital was down 30% for the year last Friday. They got a private bailout Monday for 2.75 billion. If they stayed in their short position which it looks like they did, yesterday absolutely wrecked them.

You can tell by the rest of the market equities are being sold to cover their position.

This could set forward a chain reaction if the market doesn't reconcile and absorb this.

Faux, this is a great thread. Thank you for putting it together. It definitely taught me some things as a very novice investor.

Question - without diving deep into some subReddit forums, are there any recommended sites that you can monitor the Sell activity of a stock in order to get a heads-up of what might be being shorted? I know you can track volume through some but is it ever broken down into Sell vs Buy?

I use Robinhood and have access to Fidelity as well

a reply to: CriticalStinker

I've been thinking with apple about to announce 100 billion in earnings, they should be waaaay up right now. I think people putting so much into game stop it is taking away from actual stocks that should be rocketing. And like you said people selling to cover losses. This morning at open, lots of things dropped for a bit.

The volume right now on game stop is ridiculous.

a reply to: TXRabbit

Question - without diving deep into some subReddit forums, are there any recommended sites that you can monitor the Sell activity of a stock in order to get a heads-up of what might be being shorted? I know you can track volume through some but is it ever broken down into Sell vs Buy?

Short interest is going to be the metric you're looking for.

Be careful going off of that data though as different sources are going to give you different numbers. The information can be dated as well.

I wouldn't suggest trading with that strategy though. Short sellers do more homework than most, and a lot of times it's shorted with good reason.

The reason this short squeeze is happening is because retailers recognized it and are collectively forcing the squeeze.

a reply to: TXRabbit

You can check stock twits, which is like twitter for stocks, just to get a feel for what people are thinking. But don't take any of that too seriously. Most people have no clue what they're talking about. I just use my instincts and it has served me well. Try not to get too greedy and take profits when I can.