Let’s fuckin go!!!
i don’t understand what this is about and why we’re talking about it here?
is it weird because gamestop sucks oooor?
It used to be like $5. The reason this is interesting is that this is happening because r/wallstreetbets found a way to basically swindle a bunch of Wall Street ghouls for money.
There is this thing called “shorting”. It’s a “trick” some wall street stonk firm full of ghouls pulls when it is expecting the line of a company to go down. They borrow shares for that company, they sell them to randos, they wait for line to go down, and then they buy back the stonks (at a lower price) and they give them back to the people whom they borrowed it from (with interest). If line has gone down enough, this can be very profitable for them, because if say it went from $5 when they borrowed them down to $2 when they bought them again, then they basically made $3 of profit per share (well, you’d have to subtract the interest they pay but whatever). So that’s all well and good, BUT it is very risky because who knows how high the line can go up, and if it goes up by a lot you’re fucked because you still have to buy back the stocks and return them, except now you have to buy them at a much higher price.
Gamestop stocks were shorted to an incredible extent. WSB decided to exploit this by buying a whole bunch of shares of Gamestop, and then refuse to sell them. The funds went to panic mode because WSB bought so many shares, they couldn’t find any shares to buy any more, so they have nothing to return to the brokers they borrowed them from. So they’re willing to pay more and more and more money to buy them because otherwise they’re fucked. This has prompted the stock price to go up by an incredible amount. This has made the people at WSB richer, and has resulted in the Wall Street ghouls losing billions, because if you borrowed like a thousand Gamestop stocks during the summer, that would have cost you $5000, but to buy the same number of stocks now it would cost you like $190000, and they have to do that in order to pay back the lenders, PLUS the interest.
This of course is hilarious because it shows how dumb the stock market is and also Wall Street ghouls are losing tons of money.
Several big hedge funds were short on gamestop, some guys on Wallstreetbets saw it and bought stocks and thanks to the increasing price hedge funds suddenly saw their shorts no longer covered and losing some money then that spiraled and now several hedgefunds like Citadel lost 3.5bn$ and Citron lost 2.4bn$, WSB guys basically fucked them and it’s pretty hilarious. Some of the CEOs of those companies tried to “call out” the disruptive traders.
