The FTSE

  • Thread starter Thread starter worsleyweb
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What I don't understand is how Melvin and Citron were able to short sell ~140% of outstanding GME shares. That seems to be the crux of the problem here and what actually needs fixing. They overextended themselves far more than they should have been able to.

I genuinely don't get how that's possible or even legal?

Debating getting in on the AMC train. Anyone else buy in?
 
yankblue said:
What I don't understand is how Melvin and Citron were able to short sell ~140% of outstanding GME shares. That seems to be the crux of the problem here and what actually needs fixing. They overextended themselves far more than they should have been able to.

I genuinely don't get how that's possible or even legal?

Debating getting in on the AMC train. Anyone else buy in?
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NOK/AMC are the ones !
 
yankblue said:
What I don't understand is how Melvin and Citron were able to short sell ~140% of outstanding GME shares. That seems to be the crux of the problem here and what actually needs fixing. They overextended themselves far more than they should have been able to.

I genuinely don't get how that's possible or even legal?
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It’s legal but after the last two weeks, I don’t think anyone will be trying it again as r/WSB will now have 2.5m neck beards trying to be the next u/DeepFuckingValue (the guy that’s made $40m) whilst looking for the next over shorted large cap.

It was pure greed on their part as they’d been making 20% a year from shorting the stock and talking it down to anyone that would listen in the industry.
 
M18CTID said:
They’re doing the same with Blackberry and Nokia. I know Skip said BB was a good investment a few weeks back but guessing might be best to wait until this all dies down before dipping in?
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Sold Blackberry because of this today at the peak. Difficult to know what’s going on but don’t plan on getting burnt.
 
DenisLawBackHeel74 said:
Sold Blackberry because of this today at the peak. Difficult to know what’s going on but don’t plan on getting burnt.
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Makes sense I sold my bitcoin tracker earlier this week and tempted to sell PLUG and CBDX. Feeling like 1999 in some of these hot stocks so taking some off the table.
 
DenisLawBackHeel74 said:
I’d be happy to reinvest once it settles down.
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I agree don’t think it’s over but I don’t understand stocks up 100% in a couple of days or companies with $30bn market cap with no revenue. Also Total Adressable Market reminds me of dot.com
 
SWP's back said:
Yes and no, the float is currently shorted to 140% of stocks available. That means the shorts have to buy every stock in existence (1.4 times) to unwind their positions.

A Ponzi scheme would mean that some redditors that got out today or yesterday were selling to suckers buying in today when in reality, they’re still selling to shorts covering their hedge. No one has to lose apart from the fucking idiot hedge funds that over shorted a stock to 140% of the float.

To put it in perspective, the largest previous short squeeze was on VW which had only 14% of its float shorted. Fair fucks to the retail investors making a buck ff the hedge fund managers that tried to drive a company with solid fundamentals, a positive balance sheet and a new, proven (in e-commerce) CEO to the wall. They got greedy. And they’re regretting it.

I only sold up because I’m heating chatter the SEC may pull trading on the stock as they’re getting jittery that the market has realised a bug in the system. I still think it could reach triple figures if the SEC don’t step in. There was a fuck ton of dodgy shit happening today with trading platforms freezing and/or restricting trading to selling GME and not allowing purchases. That gave me the willies so I punched out.

But fuck Melvin Capital, I’ll think of them and smile sweetly every time I play with my new clubs and thank them for being fucking idiots in the first place.
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I only found out myself about the 140% short today that is scandalous and how can that even be allowed?

I couldn't get on any of my trading platforms either and found it suspicious also, but the likes of 212 and etoro who I use have form when it comes to server crashes etc, but it wasn't just them Vanguard, Emeritrade were also 2 I heard of that had the same issues

I did a bit of reading with regards WSB and why this kind of thing was going on with regards GME, AMC etc and after educating myself a little I do think the sentiment is a good one as the likes of Melvin and Citron deserve a kicking, but I can't help thinking this kind of thing can cause issues elsewhere in the markets and as seen with the trading platforms today and people losing out as they basically couldn't trade
 
The wallstreetbets subreddit just went to private and their discord server was deleted. Something is happening.
 
Skip Donoghue said:
but I can't help thinking this kind of thing can cause issues elsewhere in the markets and as seen with the trading platforms today and people losing out as they basically couldn't trade
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Oh absolutely mate. There’s a hugely outside chance that the GME short could lead to liquidity problems in the market. I can’t see the SEC not stepping in to prevent this happening again. There’s no way a stock should have a short percentage of 140% of the available stock.

/WSB haven’t done anything wrong, it’s all on Melvin et al, wankers.
 
RandomJ said:
The wallstreetbets subreddit just went to private and their discord server was deleted. Something is happening.
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I’m still in it, there were a lot of bots posting stuff like “the bubble’s burst, I’m getting out” which they think is an attempt to scare people out of their positions. They’re massively fucked off with MM’s and news providers like CNBC.

I’m relieved I’m out tbh, fun that it was.
 
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