They are the guys who were caught with their pants down. Where are the other hedge funds? More likely, they were all long as it takes a lot of monies to drive a stock higher. Probably, owned most of those shares on Game Stop and AMC. Amateur retail traders did not do so on their own. They did not have enough monies but, probably, just piled on and got lucky without knowing it? Wait till they report who made the most monies on Game Stop and AMC. My monies are on the other hedge funds who were all long those stocks. https://www.yahoo.com/finance/news/...ment-in-game-stop-stock-frenzy-183119106.html
Trying to wrap my mind around a couple issues tied to this. Shady broker organizes a pump and dump on a penny stock promotes in on message boards yada yada yada in early and out on top. My understanding this is illegal. Is targeting a known short the same thing in a directed way? In some ways this has been going on for ever. Lots of stories of a known big trader short and everyone piles up to make the squeeze. One memorable one of the guy actually shitting his pants. Sure we need rules, fair play etc. Still a civilized country. I'm predicting some new regulations out of all of this. Not saying that makes it better . There's something about trading that it's my mind and balls against your mind and balls. We're measured by what we do in this game and our return. No arguing that. Same reason I think a good number who admire trading admire sports. What you do between the lines matters nothing else. But when we find out someone is juicing, shaving points, etc. its a problem. Could it not come out in the end that behind the reddit and wallstreet bets is some other large hedge fund manipulating the boards to squeeze rival funds that are short? I'm paying Clarence Beeks for the crop report and cashing out.
GME is free money on the short side IF its timed right relative to your wallet. But ahhh, thats where wall street fucks you all the time. Fundamentally you are correct but that doesn't mean you will make money before the margin call breaks you. Its actually fascinating.
it's funny to see the media likes to run Robinhood theme with WSB GME saga (the little guys have the strength to fight off the establishment). Let's assume the Robinhood crowd can muster the synergy to launch the short squeeze. I don't think they would have the fire power to take GME to the stratosphere. I think there's been the hidden hands of big whales behind the scene who are piling in on with WSB crowd. Only the big whales could have the deep pocket to sustain the rise. Let's assume, the WSB crowd could have the buying power to push around the GME stock. Let's assume with conservative estimate that they have the buying power to buy 10 million shares of GME, at $150/share. then they'd have to have 1,500,000,000 or $1.5 billion dollars. I don't think the WSB crowd has access to $1.5B dollars. Since Citadel and Steve Cohen have taken over the account (that's my theory . probably, it was the Citadel & Stevie team who put their sell program in overdrive today to intimidate the short sellers (by bringing stocks price down to shake out the weak retail hands to cover their short positions, but it seems it didn't work that's my theory don't know the reason why CNBC likes to run along the story line that we should have love and sympathy for these hedge funds who sell short America , man, these are sharks, they have balls, they know what they're doing. it's the trading game. sometimes, you lose, sometimes you win, you can't win every time. just don't let emotion and greed control you, yes, it is not easy thing to do
GME and AMC tanking now. Chances are good, the hedge funds who ran up GME and AMC took profits yesterday or even the day before. Rank amateur traders who piled on, some of them had huge losses as they piled on right near the top. A lot of amateur traders even now do not understand how the stockmarket works.