Is anyone following the situation with Gamestop?

[CrusadeAgainstFurries]

Seeing those greedy short-seller seeth because an army of idiots pumping the stock price up is truly glorious. 2021 started wonderfully.

 

[DreamOfRen]

They deserve it after giving people 23 cents for games that cost 59.99 at retail price.

 

[CupcakeNinja]

I used to work at a gamestop. I loved watching kids' faces when they bring in a large box of games of well over a hundred dollars and getting like 20$ worth. Oh man. The looks of absolute disbelief and pain. Priceless.

I'd be very careful checking them over too. Id be all, "yeah, scratched pretty bad" over a couple vague nicks. Or say, "well these are pretty old so the price dropped" when the game was barely a year since its release if that.

The sadist in me was never quite satisfied the same way ever again

 

[CrusadeAgainstFurries]

They deserve it after giving people 23 cents for games that cost 59.99 at retail price.

But Gamestop actually profits from the situation. The ones who are losing are the short-sellers, who gambled with borrowed stocks that they don't own. Normally short-sellers make millions with dirty tricks and loopholes like that, but now the army of Redditors and retail investors makes them lose money. Wallstreet losing at their own game versus an army of idiots. That's why they are so pissed and demand to restrict internet sites and forums like Reddit, for buying stocks?!

 

[ForestDweller]

Who the fuck cares? I don't profit from it.

 

[CupcakeNinja]

Who the fuck cares? I don't profit from it.

No one said you did, or that you do, and neither is that the point my dude.

 

[ForestDweller]

No one said you did, or that you do, and neither is that the point my dude.

The only one who should celebrate is Gamestop and the Reddit folks. I just hope they don't get too greedy and refuse to get out before it soars down again.

 

[Michuyu]

my brother was just talking about how they opened at $80 and closed at $200. lol I have no idea how stocks even work tbh

 

[DreamOfRen]

But Gamestop actually profits from the situation. The ones who are losing are the short-sellers, who gambled with borrowed stocks that they don't own. Normally short-sellers make millions with dirty tricks and loopholes like that, but now the army of Redditors and retail investors makes them lose money. Wallstreet losing at their own game versus an army of idiots. That's why they are so pissed and demand to restrict internet sites and forums like Reddit, for buying stocks?!

Actually Gamestop is pissed because PLAYERS now own the majority of shares in their company. They are being held hostage by the very same people they F*cked royally for decades. The stock is reaching record highs and all they can do is sit there like bumps on a pickle and lament.

 

[CrusadeAgainstFurries]

my brother was just talking about how they opened at $80 and closed at $200. lol I have no idea how stocks even work tbh

Basically what happened is this:
You can borrow stocks, and then sell those stocks to someone else. You'd do that if you expect those stocks to drop in price. Then you'd buy the stocks back because you still owe those stocks to the original lender. But basically, you'd buy them back at a cheaper price and pocket the change.
Here's an analogy to understand it better:
-you borrow your friend's car
-your friend wants his car back in a month
-you sell your friend's car to some crackhead for $1000 hoping that the price of the car will drop in that month
-you go back to that crackhead, that car is pretty worthless now, you buy back the car from the crackhead for $200
-you give your friend his car back and pocket the $800

But what happened here was
-you borrow your friend's car for a month
-you sell it to the crackhead for $1000
-after a month you decide to go buy back the car from said crackhead, but he now thinks the car is a collector's item and says if you want the car back it'll be $5000
-it's not your car, it's your friend's car, and he wants it back at the end of the month
-so now you need to pony-up $5000 to get that car back
-not only this, you're not the only person that did this, and there's only a limited amount of cars that you can buy so the price keeps going up

 

[K5Rakitan]

 

[Michuyu]

Basically what happened is this:
You can borrow stocks, and then sell those stocks to someone else. You'd do that if you expect those stocks to drop in price. Then you'd buy the stocks back because you still owe those stocks to the original lender. But basically, you'd buy them back at a cheaper price and pocket the change.
Here's an analogy to understand it better:
-you borrow your friend's car
-your friend wants his car back in a month
-you sell your friend's car to some crackhead for $1000 hoping that the price of the car will drop in that month
-you go back to that crackhead, that car is pretty worthless now, you buy back the car from the crackhead for $200
-you give your friend his car back and pocket the $800

But what happened here was
-you borrow your friend's car for a month
-you sell it to the crackhead for $1000
-after a month you decide to go buy back the car from said crackhead, but he now thinks the car is a collector's item and says if you want the car back it'll be $5000
-it's not your car, it's your friend's car, and he wants it back at the end of the month
-so now you need to pony-up $5000 to get that car back
-not only this, you're not the only person that did this, and there's only a limited amount of cars that you can buy so the price keeps going up

Whoa... That's scary...

 

[Sabruness]

Basically what happened is this:
You can borrow stocks, and then sell those stocks to someone else. You'd do that if you expect those stocks to drop in price. Then you'd buy the stocks back because you still owe those stocks to the original lender. But basically, you'd buy them back at a cheaper price and pocket the change.
Here's an analogy to understand it better:
-you borrow your friend's car
-your friend wants his car back in a month
-you sell your friend's car to some crackhead for $1000 hoping that the price of the car will drop in that month
-you go back to that crackhead, that car is pretty worthless now, you buy back the car from the crackhead for $200
-you give your friend his car back and pocket the $800

But what happened here was
-you borrow your friend's car for a month
-you sell it to the crackhead for $1000
-after a month you decide to go buy back the car from said crackhead, but he now thinks the car is a collector's item and says if you want the car back it'll be $5000
-it's not your car, it's your friend's car, and he wants it back at the end of the month
-so now you need to pony-up $5000 to get that car back
-not only this, you're not the only person that did this, and there's only a limited amount of cars that you can buy so the price keeps going up

I like that analogy. really does simplify things

Ok, having just read up a little on this... i find this to be some funny shit.

For those not willing to research further, a very simplistic version is this:

Short sellers: We're gonna bomb gamestop stock because we're better than you.
r/WallStreetBets: hold my karma. Lets make some money and troll short sellers at the same time.
Retail traders: We'll take a slice of that.
Short sellers: *cue angry short seller screeching*

current total of short seller losses on gamestop stock in the year 2021: $5 billion US dollars
Losses on Tuesday, 26th Jan alone: $867 million US dollars

 

[XerBlob]

Whoa... That's scary...

Yeah, short selling is extremely risky. There is limited possibility of profit, but an infinite loss by selling short. In CrusadeAgainstFurries's example, the most you could profit is $1000 if the price of the car drops to 0, and can't go negative (for stocks, physical stuff like oil and can go negative because they have another cost to actually store the oil). However, the price of the car could theoretically go up infinitely, which means you could lose an infinite amount of money.

In addition, the price of things will generally go up. Inflation is a thing, and humans will make advancements in research and stuff, so prices in the stock market will generally go up, meaning that shorting stocks is generally a losing game, to begin with.

Also, apparently, the short-sellers are going back in? https://www.cnbc.com/2021/01/26/gam...ain-but-short-sellers-arent-backing-down.html. I guess the logical thing to expect is that the price of GameStop to fall again with such a huge increase given the natural flow of the market. Up and down... but... idk. No one knows what the stock market is going to do next. Random Walk Theory: past stock movements don't predict future stock movements. Maybe it'll moon like Tesla and cause short-sellers just as much headache. I just don't know much about GameStop, but I don't really see too many people believing in the company like Tesla.

 

[ZynGrand]

You can sell games at GameStop?

I thought you were just supposed to play the display game and leave.

 

[XerBlob]

Actually Gamestop is pissed because PLAYERS now own the majority of shares in their company. They are being held hostage by the very same people they F*cked royally for decades. The stock is reaching record highs and all they can do is sit there like bumps on a pickle and lament.

Well, that's not really true. They would only own more shares if the shareholders sell (Which would be enticing, ngl). To be honest, it basically means that the GameStop executives and shareholders get more money, which is EXACTLY WHAT THEY WANT. For the shareholders, they wanted to get returns, and such a huge jump up is a very huge opportunity for them to cash out and move onto their next investment. Maybe the company will be better off with the players owning shares. Also, I'm not sure about the timeline, but Barnes & Nobles owned GameStop until 2004, I think (I never was personally f*cked by GameStop so IDK about the timeline here. According to Wikipedia, GameStop's successful years was after Barnes & Nobles gave up control in 2004).

 

[CrusadeAgainstFurries]

Yeah, short selling is extremely risky. There is limited possibility of profit, but an infinite loss by selling short. In CrusadeAgainstFurries's example, the most you could profit is $1000 if the price of the car drops to 0, and can't go negative (for stocks, physical stuff like oil and can go negative because they have another cost to actually store the oil). However, the price of the car could theoretically go up infinitely, which means you could lose an infinite amount of money.

In addition, the price of things will generally go up. Inflation is a thing, and humans will make advancements in research and stuff, so prices in the stock market will generally go up, meaning that shorting stocks is generally a losing game, to begin with.

Also, apparently, the short-sellers are going back in? https://www.cnbc.com/2021/01/26/gam...ain-but-short-sellers-arent-backing-down.html. I guess the logical thing to expect is that the price of GameStop to fall again with such a huge increase given the natural flow of the market. Up and down... but... idk. No one knows what the stock market is going to do next. Random Walk Theory: past stock movements don't predict future stock movements. Maybe it'll moon like Tesla and cause short-sellers just as much headache. I just don't know much about GameStop, but I don't really see too many people believing in the company like Tesla.

In this situation, no one cares about Gamestop. At first, it was about profit to squeeze short-sellers, but now it evolved into a full class-war against the hypocrisy and shady practices of short-sellers. Now people buy Gamestop stocks even though they know they will lose money, just to fuck with short-sellers.

 

[BenJepheneT]

In this situation, no one cares about Gamestop. At first, it was about profit to squeeze short-sellers, but now it evolved into a full class-war against the hypocrisy and shady practices of short-sellers. Now people buy Gamestop stocks even though they know they will lose money, just to fuck with short-sellers.

Monke brain here. Explain to monke?

 

[CrusadeAgainstFurries]

Monke brain here. Explain to monke?

That Wallstreet is blatantly corrupt is nothing new. A hedge fund manager borrowing 130% of the total shares of a company and then sell the stocks to drive the price down isn't actually possible, since theoretically and logically you can only have 100% of the total shares. But Wallstreet doesn't have to play by the rules, so they just do that anyway. But now since the price of the stock is driven up to the moon by "normal" investors, buying 130% of the stock shares is costly and will most likely bankrupt the hedge fund. Furthermore, if they can't return the borrowed stocks, even jail is a possibility. But most likely, the hedge fund will get just a bailout by banks and institutions, which shows further the corruption.
Now, all the "big Wallstreet boys" are crying that it's illegal market manipulation what "normal investors" do, while the hedge fund manager manipulated the market in the first place with him borrowing 130% of total shares - just a bunch of hypocrites.
People finally noticed how to beat them at their own corrupt game. But no one knows how this situation will end, it might even collapse the entire economy.

 

[BenJepheneT]

That Wallstreet is blatantly corrupt is nothing new. A hedge fund manager borrowing 130% of the total shares of a company to drive the price down isn't actually possible, since theoretically and logically you can only buy 100% of the total shares. But Wallstreet doesn't have to play by the rules, so they just do that anyway. But now since the price of the stock is driven up to the moon by "normal" investors, buying 130% of the stock shares is costly and will most likely bankrupt the hedge fund. Furthermore, if they can't return the borrowed stocks, even jail is a possibility. But most likely, the hedge fund will get just a bailout by banks and institutions, which shows further the corruption.
Now, all the "big Wallstreet boys" are crying that it's illegal market manipulation what "normal investors" do, while the hedge fund manager manipulated the market in the first place with him borrowing 130% of total shares - just a bunch of hypocrites.
People finally noticed how to beat them at their own corrupt game. But no one knows how this situation will end, it might even collapse the entire economy.

Big Corpo™ borrows Shit That Doesn't Exist™ in a machine for its own gain and when normal players make machine work very good it makes Shit That Doesn't Exist™ very costly to upkeep and since Shit That Doesn't Exist™ doesn't actually exist, letting it go out of self-preservation is risking jail time by Big Popo™. But Big Popo™ is in the big pockets of other Big Corpo™s, so the Big Corpo™ in question is relatively safe.

But now the main issue is that Big Corpo™'s stunt with Shit That Doesn't Exist™ is gonna risk the machine breaking down and exploding into a ball of fire, right?

I do not understand economics at all but I wanna laugh at something so do educate me if I get this wrong because afaik, it's pretty funny from what I can slightly comprehend.