Great Interview with WSB user re: GameStop

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LOUIS ROSSMANN: The first few things I want to make clear is that I am a member, but no one individual member or group represents it. It's a group of, over this point, over 4 million people. So I'm just a person that clicked the Join button.

When I started reading the actual due diligence on it is when I realized why they were buying in, which was that there is over 120% of these shares shorted, which means that, at some point, the hedge funds that made this very risky bet are going to have to jump in. And rather than short it this much to where they could cover at a reasonable price, they shorted more than the actual available shares, which would mean that they would then have to cover.

And I was-- honestly, I didn't actually read the whole due diligence. I just saw people buying GameStop in the beginning. And I thought, this is an obsolete retailer. And then it went from 4 to 14. And I said, OK, whatever. It went to 20 to 30 the 40. And then once it hit 40, that's when I actually started reading the due diligence section. Because that is-- they do have a due diligence section that is very separated from the part where people post things in a humorous fashion.

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That's market manipulation. That is at best immoral, at worst illegal. The SEC should investigate it entirely. So they are claiming that when normal, average, everyday people decide that they are going to look up research on how a stock is shorted and then purchase that stock at retail price that that is market manipulation. But when a company that has a financial interest in a firm that is shorting the stock says, we're not going to allow you to buy it anymore, that's not market manipulation?

That's where the anger is coming from. And I think it is righteous anger at people who are skirting the rules in a way that we would not be able to skirt the rules. Would trading be halted on a stock because I was losing money? Would Agile Therapeutics get halted on December 22, 2017, because the FDA issued a CRL I didn't think was coming? No, that doesn't happen. But it happens when they make risky trades.

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