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Gamestop (GME) short squeeze

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  • Mar 19th, 2024 10:40 am
Deal Addict
Jan 25, 2008
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This is actually good . Its much easier to squeeze a rabble of short sellers than a single big one. People underestimate the Ryan Cohen factor. The trigger for this rally was a roller coaster tweet
Last edited by thesubmitter on Jan 25th, 2021 2:10 pm, edited 1 time in total.
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Jan 25, 2008
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Sanyo wrote: To be fair those longs who bought at $130 this morning are trapped too now.

Both sides have to make their move...
Actually, its not the same. They have joined the army. They are unlikely to sell at a huge loss and they arent at any risk. The short sellers are paying interest every day. They are actually reducing the “practical float” size.
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Jan 25, 2008
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aronpm wrote: GME can dump back to $20 and those institutional shorts are still massively underwater. Dunno how else you can describe them other than royally screwed and trapped. All these articles are just goading reddit to buy even more.

Wonder if GME even used their at-the-market stock offerring today though
I hope GME did. It would be great news
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Jan 5, 2015
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Toronto, ON
thesubmitter wrote: This is actually good . Its much easier to squeeze a rabble of short sellers than a single big one. People underestimate the Ryan Cohen factor. The trigger for this rally was a roller coaster tweet
I would argue it was Citron's """5 reasons not to buy GME""" video. Here I was thinking he had information that institutional short sellers were all just insiders/institutional longs whose short position are all actually hedged with shares and they only shorted in first place to hedge against bankruptcy. Or them already having private share transfer agreements in place, something crazy like that

Instead it was just garbage that dozens of FUD articles (sponsored by who i wonder) have already been saying about GME while ignoring the fact that this is Ryan Cohen who is an expert setting up large-scale fulfillment centers from scratch. No one says Gamestop has to restrict itself to video games and consoles, them funko pops and other crap have pretty high margins after all. This is Cohen who was initially planning to sell jewelry instead of pet food for his start-up.

Not saying Ryan Cohen justifies a $150 valuation, that's pricing such a crazy turnaround, but there's definitely a floor on GME far above what these hedge funds shorted GME for. So yes, they are trapped. Doesn't mean they have to squeeze themselves into infinity, that's dumb, but they are trapped.
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Apr 13, 2006
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@faken what's your prediction for tomorrow?
I liked your $100 prediction. :D it was generally accurate and it opened at 100
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Sep 21, 2007
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ipxxx wrote: @faken what's your prediction for tomorrow?
I liked your $100 prediction. :D it was generally accurate and it opened at 100
Lucky guess lol. Honestly I can't tell you.
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
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Sep 28, 2008
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Melvin getting a bailout... Already down 30% YTD as of last Friday.

Hopefully they use that money to cover.
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Jan 25, 2008
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aronpm wrote: Doesn't mean they have to squeeze themselves into infinity, that's dumb, but they are trapped.
The key point here is like having 1 fat guy try to get out of a room or 100 skinny guys. The fat guy will get out easier. The skinny guys will trip over themselves. I can't understand short sellers who keep entering here. I respect that something ddeserve to be shorted but you are now on the other side of a trade that has gone from 4-20$
20-35$
40$-60$
60$-160-85$

It's madness to me.... and the key here is that the Board of Gamestop is 100% playing this game so you have WSB + Gamestop Board vs Boomers + Short Sellers + market makers (maybe).

I'm suspicious of the citadel deal with melvin though, citadel is a market maker. Seems like a conflict of interest if they are investing in them while they are market maker for GME
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Jan 5, 2015
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Medellin wrote:

Melvin getting a bailout... Already down 30% YTD as of last Friday.

Hopefully they use that money to cover.
well that confirms it. Melvin has a huge undisclosed short on GME. Probably BBBY and other retailers too given their puts. How could they possibly be down that much otherwise? SPY up massively since start of year.

But down nearly 30%? Holy shit then it must have been a much bigger position than what everyone else expected. Then again being short even $100 million at $4 would be a billion-dollar loss already, much more when it was $150
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Jul 7, 2004
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aronpm wrote: well that confirms it. Melvin has a huge undisclosed short on GME. Probably BBBY and other retailers too given their puts. How could they possibly be down that much otherwise? SPY up massively since start of year.

But down nearly 30%? Holy shit then it must have been a much bigger position than what everyone else expected. Then again being short even $100 million at $4 would be a billion-dollar loss already, much more when it was $150
Where do you think it goes from here?
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Jun 14, 2020
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This is new era of retail investing. I bet the next one will be HYLN (Hyliion Holdings Corp) according to my private infomation source....
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Jan 5, 2015
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thesubmitter wrote: I'm suspicious of the citadel deal with melvin though, citadel is a market maker. Seems like a conflict of interest if they are investing in them while they are market maker for GME
GME is still on the NYSE threshold list, maybe Citadel's hurting a lot too
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Jan 5, 2015
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thesubmitter wrote: You can see their holdings in the SEC Reports
Short positions don't have to be disclosed in 13F's
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Jan 25, 2008
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aronpm wrote: Short positions don't have to be disclosed in 13F's
True , but the puts are. I didn't notice you mentionned it (i saw u did, now)

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