re: A break down of what’s going on with brokerages and how the short squeeze started

Here’s a great summary from CTH , including the Tucker Carlson interview with Portnoy ...

LINK

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It started with a bunch of smart ordinary Wall Street market watchers assembling on Reddit and noticing that hedgefunds were making millions destroying the stock value of GameStop (GME) -and others- by short selling the stock and trading the position. [Short Lesson to Understand Short-Selling Here]

The hedgefunds were so greedy the short-sellers borrowed more than 140% of the total number of shares of stock of GME (GameStop) in order to destroy it. The stock value dropped from $20 to $4 as the sharks made millions in the short-sells.

That’s when the Reddit investment community,Wall Street Bets, noticed an opportunity. One of the issues with short-selling is that short-sellers must always eventually purchase the stocks they borrowed. That means if the stock value increases you are committed to buying it, you will lose money, and you cannot get away from the loss in your short-sell position so long as the stock value is high. Knowing the borrowed shares were more than the total number of outstanding shares of the entire GME stock, the rebellious alliance knew the short-sellers (hedgefunds) would have to eventually buy them.

So the independent group, mass numbers of individual investors, started purchasing shares and driving up the GameStop stock value. The GME stock skyrocketed and the short-sellers (hedgefunds on Wall Street) were freaking out. The higher the stock went, the more it was going to cost the hedgefunds to get out of their short position. Billions were being wiped out as the pesky rebel alliance kept purchasing shares and driving up the value. [Go Deep] That’s when the biggest eye-opening series of events in financial history took place….

? First Big Tech jumped-in to protect the hedgefunds. The servers that handled Reddit’s investor discussion “WallStreetBets” were shut down, essentially trying to break down the communication of the rebel alliance. They used the oft-familiar “hate speech” justification, but that was really a ruse… Big Tech was supporting Wall Street.

? Then the New York Stock exchange stepped-in to protect the hedgefunds by blocking trades of GameStop and other Reddit targeted stocks (Nokia, Blackberry, AMC theaters). Ameritrade also blocked any trades. The NYSE was essentially trying to protect the institutional investors, billionaires, from the citizens, independent investors. Wall Street went to war against day-traders, ordinary Americans.

? Then the stock trading App “Robinhood” which was used by the citizens to make their trades, actually stepped-in to stop users from purchasing GameStop shares. The Robinhood app will now only allow sales of GME and the other stocks because the app is protecting the billionaire class from their short position.

Wall Street, the New York Stock Exchange, the entire financial trading system is trying to protect the short-sellers by driving down the shares of stocks so that the short-sellers can get out of their positions.

Never has there been such blatant market manipulation by the organized efforts of the elite financial class. Big Tech and Wall Street are working together to keep a rigged system tilted in their favor and their aligned efforts are spotlighting just how rigged that system is. The elites don’t care what happens to the ordinary citizens in the stock market… they are protecting their own status. All of this is brutally illegal market manipulation and collusion by the financial sector. [Story Here and Story Here]

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Nothing needs to change. People got greedy, legally. People saw they could potentially screw them, legally. Just make sure no one gets bailed out.

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Agree the hedge funds shouldn’t be bailed out but disagree with the first remark about legality.

The hedge funds got greedy but the naked short selling is not legal

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We just saw how fragile the system is.

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To me, the first thing you need to understand about stocks is that the whole thing is a house of cards and will one day completely topple down again. Because the people running the show are these type of people that will try to ruin people in order to make money. You have to accept the whole idea of worth is complete bullshite in reality.

And then you have to always realize that the government will step in to protect their donors and backers. Even though hedge fund should absolutely be taking a massive hit here, they will take far less thanks to uncle sam and their friends like robin hood stepping in to protect them.

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Sorry I downplayed your movement.

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Zing! You should be sorry for being a disingenuous contrarian. But I got it, that’s your shtick. You were right about Aurora