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I need an explanation; Robinhood & GameStock related
Posted on 1/29/21 at 5:50 am
Posted on 1/29/21 at 5:50 am
Can someone in 150 words or less explain to me the whole Robinhood & Game Stop thing.....and do it like I'm 5.
TIA
TIA
15
Posted on 1/29/21 at 5:52 am to Wtodd
Hedge fund bet against gamestop. Autists saw this and said lets buy a ton of gamestop stocks. Stonks went up. Good guys win
And then the news said:
And then the news said:
This post was edited on 1/29/21 at 5:55 am
Posted on 1/29/21 at 5:52 am to Wtodd
Trading places.
Posted on 1/29/21 at 5:54 am to Bulldogblitz
quote:
Trading places.
OK exactly what does Robinhood & GameStock sell. make, advise on, etc? Sorry didn't want to look either up bc you guys would give better info.
Posted on 1/29/21 at 5:55 am to LoneStar23
Good guys were winning. Bad guys trying to turn the game off. The bath water has been thrown out and it’s looking like the baby will go with it.
Posted on 1/29/21 at 5:57 am to roadtrash77
quote:
Good guys were winning. Bad guys trying to turn the game off.
Yeah I kinda got that and I'm not a complete idiot re: the markets.
Posted on 1/29/21 at 5:59 am to Wtodd
Hedge funds borrowed GameStop stock and sold it planning to buy it back at a lower price when it was due. Folks found out and bought it up forcing the price up knowing the hedge fund had to buy it back.
Instead of selling it high and buying it back low the hedge funds had to buy it really high thus losing money.
Instead of selling it high and buying it back low the hedge funds had to buy it really high thus losing money.
Posted on 1/29/21 at 6:01 am to Smokeyone
Thanks Smokey 
Posted on 1/29/21 at 6:03 am to Wtodd
Posted on 1/29/21 at 6:18 am to TurkeyBaconLeg
Exactly. They would sell the stocks in the hedge fund. When it dropped 30% they would buy it back and pocket the money they made. Reddit sent GameStop to the moon after they sold and made the hedge fund replace those stocks (because they were their clients stocks) at ridiculous prices and cost the hedge funds millions.
Now they are trying to say it’s illegal when the hedge funds were doing the shady shite.
Now they are trying to say it’s illegal when the hedge funds were doing the shady shite.
Posted on 1/29/21 at 6:38 am to Wtodd
Several hedge funds have been on the brink of bankruptcy. These funds typically would probably view short-selling Gamestop as a fairly low risk trade, so they did a ton of it. Problem is, they had basically unlimited risk if the market moved against them.
Ex. Hedge fund shorts 6 stocks at $10 and puts in an order to buy 2 stocks if it gets to $8, 2 more at $7 and 2 at $5. If all their orders clear, they would expect to make $16 profit. But if it comes time to execute and the stock never fell, but actually climbed to $12, I would lose $12 once I bought in those shares.
Redditers on a trading page saw video of one of the hedge funds talking about how they took a huge short position on Gamestop, so they all started buying like crazy to "artificially" bump the price up. So it was like the above example for the hedge funds, except some of the funds had several million naked shorts in Gamestop and were being forced to liquidate at $90/share when they maybe sold for $10 or $15
Ex. Hedge fund shorts 6 stocks at $10 and puts in an order to buy 2 stocks if it gets to $8, 2 more at $7 and 2 at $5. If all their orders clear, they would expect to make $16 profit. But if it comes time to execute and the stock never fell, but actually climbed to $12, I would lose $12 once I bought in those shares.
Redditers on a trading page saw video of one of the hedge funds talking about how they took a huge short position on Gamestop, so they all started buying like crazy to "artificially" bump the price up. So it was like the above example for the hedge funds, except some of the funds had several million naked shorts in Gamestop and were being forced to liquidate at $90/share when they maybe sold for $10 or $15
Posted on 1/29/21 at 6:41 am to Wtodd
Collusion between hedge funds and brokerages. Also known as market manipulation.
Posted on 1/29/21 at 6:42 am to ClampClampington
The nerve of thing the underdog will survive....
Posted on 1/29/21 at 6:44 am to Wtodd
1. so a bunch of REALLY rich chodes announced a “short” where they would sell burrowed game stock shares at price A to crash the price and then use funds to buy the stock back at a lower price B - pocketing the difference while returning the shares to the lender.
2. Some people on Reddit saw the announcement, and in a protest on Wall Street, they all got together and brought up TONs of stock (via RobinHood) driving the price of game stop stock “to the moon” (cryptocurrency tactic) - thereby leaving these Wall Street guys with their dicks in their hands losing tons of money because these Wall Street guys HAVE to buy back at the high stock value within a certain time to prevent screwing over the people who actually owned the original shares
3. Some powerful people (rumors the White House, itself) pressured Robin Hood to halt trading on that stock so the chodes could recoup losses - which is crazy illegal. RobinHood caved and halted trading.
4. All this proved game is rigged just like the election
TL;DR version: bunch of regular people used a slimey Wall Street trick against Wall Street so now Wall Street wants to take its ball and go home
2. Some people on Reddit saw the announcement, and in a protest on Wall Street, they all got together and brought up TONs of stock (via RobinHood) driving the price of game stop stock “to the moon” (cryptocurrency tactic) - thereby leaving these Wall Street guys with their dicks in their hands losing tons of money because these Wall Street guys HAVE to buy back at the high stock value within a certain time to prevent screwing over the people who actually owned the original shares
3. Some powerful people (rumors the White House, itself) pressured Robin Hood to halt trading on that stock so the chodes could recoup losses - which is crazy illegal. RobinHood caved and halted trading.
4. All this proved game is rigged just like the election
TL;DR version: bunch of regular people used a slimey Wall Street trick against Wall Street so now Wall Street wants to take its ball and go home
This post was edited on 1/29/21 at 6:55 am
Posted on 1/29/21 at 6:49 am to Wtodd
Look up some videos . Tucker has a good one . Billionaires barrow stock they think will drop and sell it . Then buy it at a lower cost and give it back . Sometimes they will even use the media to help get people to panic making the stock drop faster . But this time they were beat at their own game .
Posted on 1/29/21 at 8:07 am to Wtodd
Posted on 1/29/21 at 8:10 am to roadtrash77
quote:
Bad guys trying to turn the game off.
Man Claims To Be Robinhood Employee & Says The White House Pressured Halt of GameStop Trading
https://twitter.com/Breaking911/status/1354935144893853706
Posted on 1/29/21 at 8:23 am to Wtodd
Posted on 1/29/21 at 8:31 am to Wtodd
There's a group of people who get kicked out of countries for constantly doing tomfoolery wherever they go.
Posted on 1/29/21 at 8:34 am to Bulldogblitz
Exactly!
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