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I wonder whether the Gamestop buyers understand the standard mechanics of stocks, and that the price will crash when they run out of *new* buyers, not when current holders choose to sell; and think they can time it, earlier than others trying the same. Or if they just don't know.
Oh, *that's* interesting! If further naked shorting is impossible and outstanding shorts are that high, I genuinely no longer know whether WallStreetBets can win this or not - my current theoretical understanding doesn't give a non-detail absolute answer. https://twitter.com/arjunxkapoor/status/1354657224728010754
Learned something new twice in one thread. Today is a good day. https://twitter.com/ESYudkowsky/status/1354666103545360387
This doesn't make it a dumb plan per se. WSB could mostly have bought in at lower prices, such that slowly selling half their stock near the top price is still a fine profit. But it answers my implicit confusion "Wait, does that mean I can buy *now* and still make a profit?"
Also, this explains why the short squeeze tactic is usually used by "Big boys" rather than retail investors - a big boy can hold enough of the long position in one shop, without internal coordination problems! I'll be very interested if WSB is coordinated enough for the same!
Okay a new question. Is there a standard doc somewhere with the /r/WallStreetBets Plan for GameStop? Because I just took a quick look, and it did not look to me like there was a defined plan for partial slow selling. Or, indeed, a plan.
Wrote up the lessons, at least the technical lessons. https://twitter.com/ESYudkowsky/status/1354868166703288320?s=20
