So, I read this posted somewhere: If you guys haven't been following the GameStop Stock Shit-Show, you really need to look into it. This is fucking hilarious. Allow me to catch you up. So this hedge fund called Melvin Capital wrote out some douchey article about how the smart investment move would be to short-sell GameStop stock. To put it simply, short-selling is essentially gambling that a stock's price will drop. If it does, you make money. If it doesn't, you end up paying out money for however much it goes up. Well, this little article that Melvin wrote pissed off a dark, dank corner of the internet called Wall Street Bets. WSB is a hive of Ritalin-addled lunatics who treat the stock market like a fucking casino. These dudes will regularly gamble their life-savings on a single trade. It's a glorious thing to watch. The WSB crew has a weird fascination with certain stocks. They call them "meme stocks." Tesla is one, AMD is another, and GameStop, arguably, is the most weirdly beloved meme stock. So for reasons that make sense only to the degenerates on WSB, Melvin trying to short-sell their meme was a declaration of war. Yes, this is dumb. But it gets so fucking hilarious. WSB decided to do a "short squeeze." This is when you see people trying to short a stock, so you buy up that stock, and you get a bunch of other people to buy up that stock. With each purchase the price actually goes up. Since Melvin was trying to short the stock at a price of $20 per share, WSB wanted to get it as high above that price as humanly possible. They got it up to $200 per share. This means Melvin has to cover over $180 per share they bought. This came out to billions. Fucking. Billions. Melvin Capital, over night, was suddenly facing bankruptcy. Think about that. A bunch of self-identified degenerates on a fucking website were able to tank a fucking hedge fund. That's hilarious. Well, the rich and powerful don't like seeing us plebeians fucking with one of their own. So Point72, another hedge fund, teamed up with a few other little funds, and they injected around THREE BILLION into Melvin Capital to keep them from spiraling. Essentially this meant the billionaire hedge fund crew were banding together to fight back against Wall Street Bets. And WSB just said "okay, no problem." Today the stock for GameStop is at $320 per share. Melvin Capital lost all of that three billion they were given. It's gone. They're still fucked. Point72 gave a little over a billion of that injection, and that means that fund dropped from 17 billion to 16 billion. That means in less than 24 hours WSB managed to all but ensure one hedge fund will die and drop the value of another by 6% so far. And remember, WSB are just a bunch of jackasses on the internet. They aren't hedge fund guys, they aren't millionaires or billionaires. This is literally being done by morons with a phone app coordinating to ruin billionaires' lives because they can. What we're watching here with GameStop stocks is a bunch of rich people who are getting fucking wrecked, purely for entertainment, by the kind of middle- and poor people they regularly lobby against and treat like this. This "eat the rich" via phone app. It's "damn the man" with a meme-stock. It's fucking beautiful. And because whoever is writing our reality lost all sense of subtlety after 2020, the icing on the cake is that the app the WSB crew are using to pull this off is a stock-trading app called Robin Hood. Yeah, as in steal from the rich and all that jazz. Goddammit, I truly love living in the future. Pass it on! Copied from a friend That is freaking HILARIOUS if true. If true it should also mean the GME stock is way over-priced and should be shorted. But I just checked my IB account and it say's I can't short it. What gives? Thanks!
Can't buy it either. This "miracle of opportunity" is not for thee! However, you can sit back and watch others have all the fun.
!!!Listen up ET this is important!!! This is what "they" are dealing with right now. I will go straight to fucking zero before I close anywhere near this low. And if I blow up i swear to fucking god i will force both my wife and my mom into opening an onlyfans account to finance the comeback. This is the mentality of many in retail right now that are sitting on pocket aces while wallstreet has a fuckin 2-7 off suit. CANT STOP WONT STOP GAMESTOP
Momday I was able to short. Shorted around 140 level and closed it around 70. That was it. Couldn't go back in after that. Tried shorting the last 3 days and to no avail. It's obvious it's free money if you could short, but no way possible on any platforms I use.
I think you meant "can't short it." Earlier today there was a trading halt. That's a decision made by the exchange, not by the brokers. Right now it is possible to buy it, at least in our account at Schwab. When trying to short it, we get a message that the order cannot be placed because there are insufficient shares available. That means there are no shares available to borrow. You can't sell short if the shares cannot be borrowed. BMK
Humble advice from an amateur retail: Don't get mad, just get out since you already made some good money on GME. Call it a day and move on. I wished I got out before the crash back in the dot com days.