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if you're wondering how tf redditors bankrupted a few hedgefunds in under 24 hours, yours truly has the tea 
to understand what's going on with $GME requires understanding short selling, rich people, and internet trolls, which is my favorite combo of things.
to understand what's going on with $GME requires understanding short selling, rich people, and internet trolls, which is my favorite combo of things.
to "short" a stock means to bet on its price decreasing 
you borrow shares from someone that owns them via your brokerage and sell them on the market.
you then wait for the price to decrease, at which point you buy the shares back and return them to the lender.
you borrow shares from someone that owns them via your brokerage and sell them on the market.
you then wait for the price to decrease, at which point you buy the shares back and return them to the lender.
it's all "sell high, buy low" -- which is a lot like the recommended "buy low, sell high".
this practice can be wildly profitable, and only goes sideways if one integral part of your plan goes wrong, and the stock prices go UP instead of down.
Which is what happened with $GME
this practice can be wildly profitable, and only goes sideways if one integral part of your plan goes wrong, and the stock prices go UP instead of down.
Which is what happened with $GME
hedgefunds regularly use combinations of shorts & options to make money hand over fist no matter what the market does.
that's why they're called hedgefunds. they're always "hedging" their bets. its rich people sh*t.
they'd been shorting $GME for years.
that's why they're called hedgefunds. they're always "hedging" their bets. its rich people sh*t.
they'd been shorting $GME for years.
a few redditors *~*believed*~* in the magic of GameStop and went long by buying shares.
then some other redditors noticed somehow more shares of $GME were being lent to short sellers than were actually available...?
ah, an opportunity to troll
then some other redditors noticed somehow more shares of $GME were being lent to short sellers than were actually available...?
ah, an opportunity to troll
redditors piled on buying shares, driving up the stock price to screw the short sellers.
they then took it one step further and CALLED THEIR BROKERS and said "do not lend out my shares for shorts"
this deadly combo created a short squeeze.
they then took it one step further and CALLED THEIR BROKERS and said "do not lend out my shares for shorts"
this deadly combo created a short squeeze.
in less than 24hrs the price of $GME surged nearly 300%.
short sellers SCRAMBLED to cover their positions.
imagine selling a stock for $5 then having to buy it back at $350 lmao do u have the money to do that? (spoiler: they didn't)
short sellers SCRAMBLED to cover their positions.
imagine selling a stock for $5 then having to buy it back at $350 lmao do u have the money to do that? (spoiler: they didn't)
hedgefunds who had been betting against $GME for years were now *billions* in debt.
many rich people cried real tears over this today, u guys
many rich people cried real tears over this today, u guys
and many redditors got rich.
and not just kind of rich, like millions and millions of dollars rich.
one redditor bragged about a $50K investment turning into over $11 million.
and not just kind of rich, like millions and millions of dollars rich.
one redditor bragged about a $50K investment turning into over $11 million.
so why is this story so interesting?
because internet trolls have never been considered a "risk" of investing in the stock market before.
but forums like reddit + low fee brokerage apps like Robinhood have made it possible for people to pull stunts like this.
because internet trolls have never been considered a "risk" of investing in the stock market before.
but forums like reddit + low fee brokerage apps like Robinhood have made it possible for people to pull stunts like this.
we all laughed when GenZ used TikTok to sell out a Trump convention, but you've seen NOTHING yet.
social media can and does and will manipulate financial markets (amongst other things) this way.
and old hedgefund managers DO NOT know what to do about it ¯\\_(ツ)_/¯
social media can and does and will manipulate financial markets (amongst other things) this way.
and old hedgefund managers DO NOT know what to do about it ¯\\_(ツ)_/¯
plz follow @moneyaftergrad on insta where I am giving a $GME play-by-play in our stories whenever i manage to catch my breath from laughing so hard
