GameStop + Robinhood + Reddit

[Xist]

Originally Posted by RedDevil

I don't know how one could determine whether you're buying 'real' shares, borrowed shares or imaginary 'naked' shares.

The same way you can tell if you captured your enemies or just their stunt doubles.

[Fat Charlie]

Holoduke was always useful. Just not appropriate for a free market.

[RedDevil]

No, seriously. We don't buy shares, we buy a digital representation of a share in the stock exchange system. Just like my salary is a binary pattern in my bank's database and only a fraction of it is ever converted to real money.

In the end it doesn't matter - it is even easier to buy things electronically rather than physically, especially of late. I don't know if my bank really has the money or not; but they do transfer money to the requested accounts whenever I issue a transaction, so it works. I'm fine as long as they can guarantee they'll always do that.

The point with naked shorts is that nobody can guarantee that the share will be bought back, despite the promise to do so.
If the value of the shorted shares would move higher than the party who wrote them can pay, and if they are blocked from compensating by writing new shorts, then you would not get the shares you thought you owned. At least, someone would not - probably the stock exchange itself?
If so, a short squeeze that goes to infinity would bankrupt the exchange (and still the stock owners get less than the formula entitles them to).

There can be moral reasons to ban naked shorting. Preventing the possibility of an infinity squeeze would be a practical reason.
it is nice when morality gets support from practicality

[redneck]

Originally Posted by RedDevil

No, seriously. We don't buy shares, we buy a digital representation of a share in the stock exchange system. Just like my salary is a binary pattern in my bank's database and only a fraction of it is ever converted to real money.

In the end it doesn't matter - it is even easier to buy things electronically rather than physically, especially of late. I don't know if my bank really has the money or not; but they do transfer money to the requested accounts whenever I issue a transaction, so it works. I'm fine as long as they can guarantee they'll always do that.

https://www.youtube.com/watch?v=TGwZVGKG30s

>

.

[RedDevil]

Casgains academy exposing the hedge funds strategy.

https://www.youtube.com/watch?v=pE6hWr6uho8

[ME_Andy]

It's funny how people assume it's the hedge funds behind this. Maybe it is, maybe it isn't. I have no idea. Maybe it was some millionaire who took out such a huge GameStop short position.

Overall, I think the market learned its lesson and the drama is all gonna die down.

[freebeard]

Good video. At 3:57 he says it's been going on for a long time. Perhaps others remember Enron.

It's dropped off my radar, but I suspect the shorts have been squeezed by now. But still, a new generation are educated about penetration testing and gaming systems for fun and profit.

edit:

Here's an answer. A talking head instead of stock footage.

https://www.youtube.com/watch?v=atHMYQtunF0

[RedDevil]

Originally Posted by ME_Andy

It's funny how people assume it's the hedge funds behind this. Maybe it is, maybe it isn't. I have no idea. Maybe it was some millionaire who took out such a huge GameStop short position.

Overall, I think the market learned its lesson and the drama is all gonna die down.

Apparently one can request a list of 'current' (at least recent) short positions plus who issued them.

https://www.afm.nl/en/professionals/...sities-actueel

Hedge funds, hedge funds, hedge funds.
Makes sense, as that's what they do by definition.

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives.[1] Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals and others who are considered sufficiently sophisticated.

Bit of an old boys network. Someone needs to change that.

[Fat Charlie]

It wasn't as tidy as the old Porsche/VW, but it did let more people participate. Some of those participants are saying that it isn't over, that they don't think the large short positions have been covered.

[freebeard]

If retail traders can only sell and not buy some specific stock, who do the sell to? Makes you think.

Here's this:

Reddit vs Wallstreet - The Movie