GameStop, Reddit, RobinHood, Wall Street hedge funds, Pelosi ... oh my!!!

POSTED BY: SIGNYM
UPDATED: Sunday, July 12, 2026 04:35
VIEWED: 3653
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SIGNYM

Saturday, January 30, 2021 2:48 PM

What a story of greed, corruption, David V Goliath, and more!

The players:

Gamestop (GME) is a brick-and-mortar video and game store

RobinHood is an online investor platform which promised to put retail investing into the hands of the little guy (or gal) with free services

Reddit is an online chat group

Nancy Pelosi, Wall Street hedge funds including Citadel ... we all know who they are, more or less.

*****

Wall Street hedge funds, in case you don't know, have been manipulating stock prices for years. They can raise prices by buying shares, or lower prices by "shorting" a stock. "Shorting" a stock is a way of making money when stock prices go DOWN. (It's complicated.)

So Wall Street hedge funds had a plan to short GameStop (GME), driving stock prices down and making money in the process.

Unbeknownst to Wall Street, an investment rebellion was brewing on Reddit. A group of retail investors had decided that when Wall Street was going to short the stock, they would, instead, BUY the stock and drive prices up, not only making money in the process but also sticking it to the hedge fund(s) and causing them to lose money. It's called a "short squeeze", because those shorting the stock are forced to sell at a loss to cover their positions.

The Reddit group implemented their coordinated "short squeeze" in RobinHood, quite successfully, I might add. Not to worry: hedge funds were bailed out.

Then Robin Hood decided to change the rules of the game by disallowing PURCHASES of GME (and several other stocks like Nokia subject to being shorted)and have since tightened the rules even more, limiting anyone's overall position in about 36 stocks to ONE SHARE. It turns out that Robin Hood, despite its PR about putting investing within reach of the "little guy/gal" is actually owned by/beholden to Citadel, yet another Wall Street hedge fund.

Needless to say, activist investors have fled Robin Hood for other platforms and RobinHood appears to be CTD (circling the drain).

Nancy Pelosi is outraged ... OUTRAGED!, I tell you! ... that the little investors would turn the tables so magnificently on Wall Street, and wants an investigation pronto! and to make market manipulation (by the little guys/gals) illegal. But it's OK if Wall Street continues, because that's how Nancy made her millions, trading in stocks that she knew (as Speaker) would go up - or down- because of impending government action. (That would be called "insider trading" by most people).

Anyway, it's a story too good to ignore.

SIGNYM

Saturday, January 30, 2021 2:53 PM

Of course, anyone can claim anything online, but one Redditor (Space-Peanut) explains his paticipation in sticking it to Wall Street this way ...

Quote:
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.

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Pity would be no more,
If we did not MAKE men poor - William Blake

THUGR posts about Putin so much, he must be in love.

SIGNYM

Saturday, January 30, 2021 3:57 PM

One more twist: GOOGLE

Google DELETES 100,000-plus one-star ratings of Robinhood app after enraged retail traders pile negative reviews over GameStop ban

Frustrated investors had dropped Robinhood's rating from about 3.7 stars to ONE star. Google, by assiduously removing negative reviews, restored Robonhood's online rating to a shiny 4 stars.

-----------
Pity would be no more,
If we did not MAKE men poor - William Blake

THUGR posts about Putin so much, he must be in love.

SECOND

Saturday, January 30, 2021 6:32 PM

Quote:
Originally posted by SIGNYM:
Of course, anyone can claim anything online, but one Redditor (Space-Peanut) explains his paticipation in sticking it to Wall Street this way ...

The GameStop bubble is NOT a revolt against Wall Street

The GameStop short squeeze has been described as a revolt against financial capitalism, or the realization of Occupy Wall Street. This is like calling the movie Air Bud a critique of basketball because a golden retriever proved surprisingly good at the game.

That an investing influencer under the moniker DeepFuckingValue collaborated with like-minded speculators on Reddit forums to identify an arbitrage and put the squeeze on ostensibly sophisticated hedge funds is nothing short of impressive—and a testament to the accessibility of the markets. Some big players saw real losses, but so far the markets have not crashed, and the financial industry is not shook.

Indeed, some of the biggest profiteers from this week’s market action are asset managers like BlackRock, market-making hedge funds like Citadel, and the private equity giant Silver Lake. Other big investors quickly followed Robinhood users into the GameStop trade, along with many new small-time day traders. How all these various players exit the trade—and whether they do so at a profit—will shape whatever response regulators may offer to the situation.

After some brokerages suspended trading in GameStop and other hot stocks, conspiracy theories quickly spread that “suits” intervened to keep small investors from playing the market. Some populist politicians joined the conspiratorial social media pile-on. The more prosaic reality is that online brokers swamped in new business had to raise money to meet capital requirements, imposed by regulators to protect investors of all stripes.

Populism this ain’t. Occupy Wall Street did not speak with a single voice, but after the 2008 financial crisis, the “99%” were clearly fed up with speculation. Some of demands that emerged from that movement included universal basic income, debt relief—and a financial transactions tax to curb short-term investing. A decade later, is the dream really unfettered access to leveraged options trades?

Make no mistake: The “suits” would love to see that pivot—some call it neoliberalism.

https://www.msn.com/en-US/money/personalfinance/the-gamestop-bubble-is
n-t-a-revolt-against-wall-street/ar-BB1demcD

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at www.mediafire.com/folder/1uwh75oa407q8/Firefly

JAYNEZTOWN

Saturday, January 30, 2021 6:33 PM

GameStop: When smart money and dumb money clash
https://www.dallasnews.com/opinion/editorials/2021/01/30/gamestop-when
-smart-money-and-dumb-money-clash/

The GameStop Saga Proves Populism is Here to Stay | Opinion
https://www.msn.com/en-us/news/opinion/the-gamestop-saga-proves-populi
sm-is-here-to-stay-opinion/ar-BB1detZ3

Dow tumbles 700 points amid GameStop mania, on pace for worst day since October
https://www.nbcnews.com/business/markets/dow-tumbles-700-points-amid-g
amestop-frenzy-pace-worst-day-n1256186

6IXSTRINGJACK

Saturday, January 30, 2021 7:15 PM

Quote:
Originally posted by SIGNYM:
RobinHood is an online investor platform which promised to put retail investing into the hands of the little guy (or gal) with free services

When you're not paying for a product or service, you are the product.

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A government is a body of people usually, notably, governed by Mark Zuckerborg and Slack Dorsey.

6IXSTRINGJACK

Saturday, January 30, 2021 7:16 PM

Quote:
Originally posted by SIGNYM:
One more twist: GOOGLE

Google DELETES 100,000-plus one-star ratings of Robinhood app after enraged retail traders pile negative reviews over GameStop ban

Frustrated investors had dropped Robinhood's rating from about 3.7 stars to ONE star. Google, by assiduously removing negative reviews, restored Robonhood's online rating to a shiny 4 stars.

Not far removed from RottenTomatoes falsifying their scores for shitty movies and TV shows, or Democrats changing the vote counts to win* elections they lost.

--------------------------------------------------

A government is a body of people usually, notably, governed by Mark Zuckerborg and Slack Dorsey.

JAYNEZTOWN

Saturday, January 30, 2021 8:31 PM

Some GameStop investors got in with one goal — to pay off debt

https://www.foxbusiness.com/markets/some-gamestop-investors-got-in-wit
h-one-goal-to-pay-off-debt

The psychology of the GameStop phenomenon, explained
https://www.msn.com/en-us/news/other/the-psychology-of-the-gamestop-ph
enomenon-explained/ar-BB1deKTY

6IXSTRINGJACK

Saturday, January 30, 2021 11:00 PM

Hopefully they were able to sell the stock they bought at bloated prices before they were barred from trading and didn't just stick themselves with Bankruptcy, which BTW will never erase the lifetime college loan debt these "geniuses" enslaved themselves to.

--------------------------------------------------

A government is a body of people usually, notably, governed by Mark Zuckerborg and Slack Dorsey.

SIGNYM

Saturday, January 30, 2021 11:26 PM

AN EXPLANATION OF "SHORTING"

Quote:
Let’s say you have a neighbor who is a cat lady that collects Beanie Babies. She has one prized beanie called Roary the Lion, worth $5000 (according to the intellectual darkweb, where these things are traded). Unfortunately, she’s got some bills coming due this month and she doesn’t want to be forced to sell Roary. So you offer to borrow Roary from her for 3 months in exchange for $200. She’s happy, because she’ll get her doll back in a few months and she now has enough money to cover her bills. The second you walk home with the beanie, you go online and sell it to the highest bidder. You manage to get the asking price, $5000. Now fast forward 3 months. Suddenly Beanie Babies aren’t worth as much as they used to be. You see a mint condition Roary the Lion for sale at only $100. You buy it, and give it to your neighbor. Done deal. It’s not the same doll your neighbor loaned you, but she can’t tell the difference. So during this whole process, you’ve only shelled out $300 and you’ve made $5000, for a total profit of $4700. Your neighbor would have lost the value of Roary anyway because of the market crash, but at least she got to use that $200 to pay her bills. This is shorting...

This brings us to another aspect of shorting that is a bit more interesting (and explains why it’s so dangerous). Let’s say you borrowed a bunch of Tesla shares at $400 and immediately sold them because you expected the price to fall soon. But instead of falling, the price starts to climb. You are contractually obligated to buy these shares back before a set date, so you are sweating bullets. The higher the price goes, the less sleep you get. The only way for you to cut your losses is to buy the shares back immediately. But if you’re stubborn, you won’t do this. Surely the market will realize Tesla are liars, right? There’s no way electric cars are really that popular. If you went long Tesla (just buying and holding shares), your potential losses are limited to what you invested. So there’s a cap. But when you short, you could lose far more than 100%. Remember that you only paid a small fee to borrow the shares, you didn’t actually buy them. To close your short position, you have to buy the shares back, and that adds to the existing demand for the stock, which drives its price even higher. It’s like an insidious trap that clamps down harder on your foot the more you struggle. This is called a “short squeeze.” It can create a cascading effect where one unfortunate short buys back shares, forcing the price higher, which destroys another short above him, forcing the price even higher, destroying another short above him, and so on.

https://www.unz.com/article/bonfire-of-the-shorts/

-----------
Pity would be no more,
If we did not MAKE men poor - William Blake

THUGR posts about Putin so much, he must be in love.

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