Wall Street Is Panicking - The Little Guys Beat Goliath

[Michael]

GameStop jumps more than 100% even as hedge funds cover short bets, scrutiny of rally intensifies

Apparently Wall Street is freaking out because some folks over at Reddit figured out how the large hedge funds have been manipulating stocks by *heavily* short selling specific stocks, and then talking down the company, and making money off their short sell bets as people start selling the stock.

Some folks at Reddit figured out that someone was massively shortselling Gamestock shares, so a bunch of folks on Reddit banded together and *bought* that stock to drive *up* the price. All hell then broke loose because the big insiders got caught and got financially punished for engaging in "meme" trading. The amateurs beat the Wall Street insiders and Melvin Capitol at their own game. Love it.

 

[GDL]

The amateurs beat the Wall Street insiders and Melvin Capitol at their own game. Love it.

Saw the headline but didn't read the article. Assuming accuracy, nice to see people going after the gamers and beating them at their games. I think this same thing will be going on against politics-as-usual. There's more than one way to skin a cat, as they say. And when a few people with abilities assemble, figure out the game, and go after it, and accomplish, then think of 70+million people assembling to implement different [& legal] strategies than business as usual. Interesting times ahead.

 

[Michael]

Saw the headline but didn't read the article. Assuming accuracy, nice to see people going after the gamers and beating them at their games. I think this same thing will be going on against politics-as-usual. There's more than one way to skin a cat, as they say. And when a few people with abilities assemble, figure out the game, and go after it, and accomplish, then think of 70+million people assembling to implement different [& legal] strategies than business as usual. Interesting times ahead.

I agree. The question is will Wall Street stop allowing the manipulation of stock prices by the large hedge funds? There are quite literally *billions* of dollars being made (and now lost) by the big players, and it's no better than the house controlling the gambling that's going on.

In this case someone (a lot of people actually) beat the house and they beat it *badly*. They made the hedge funds pay a *serious* price too. As a result they are *finally* talking about imposing trade regulations, but it's probably just lip service IMO because they've been gaming the system for *decades* and they are loathe to give up their profitable games. Wall Street will
probably just suck it up and hope it's a "one off' event, but I don't think it will be. Now that Reddit users have figured out how their inside trading system works, and they've learned how to beat the house, they're bound to do it again and again. Stay tuned.....

 

[The IbanezerScrooge]

This whole thing is just brilliant. I'm a cynic so I don't think anything will change for the better as a result of this but it's great to see the hypocrisy exposed and "the little guy" stick it to The Man.

 

[GDL]

Stay tuned.....

Apparently going on with AMC and Blockbuster Liquidating (penny stock) also.

 

[Paulos23]

According to this video, the hedge funds did it to themselves and the Redit folks just took advantage of it.

 

[The IbanezerScrooge]

TD and RobinHood have shut down trading for these stocks unless you already hold shares. Other trading platforms will likely follow suit until the markets calm down and the big boys regain control.

 

[Nithavela]

TD and RobinHood have shut down trading for these stocks unless you already hold shares. Other trading platforms will likely follow suit until the markets calm down and the big boys regain control.

And they will get sued for it.

 

[The IbanezerScrooge]

And they will get sued for it.

Already happening, lol

 

[The IbanezerScrooge]

And now there is evidence of actual crimes by these companies. Citadel reloaded their shorts just before RobinHood suspended buying on their app. They colluded to manipulate the markets so the hedge funds could make their money back.

These guys should be in jail.

 

[Nithavela]

And now there is evidence of actual crimes by these companies. Citadel reloaded their shorts just before RobinHood suspended buying on their app. They colluded to manipulate the markets so the hedge funds could make their money back.

These guys should be in jail.

Give it some time.

 

[Michael]

And now there is evidence of actual crimes by these companies. Citadel reloaded their shorts just before RobinHood suspended buying on their app. They colluded to manipulate the markets so the hedge funds could make their money back.

These guys should be in jail.

It's actually worse than I thought too:

Robinhood forcibly selling shares of GameStop without users’ consent

Robinhood is apparently selling gamestop stock *without the owner's consent*. If that's true, it's blatant fraud.

 

[VladTheEmailer]

It's actually worse than I thought too:

Robinhood forcibly selling shares of GameStop without users’ consent

Robinhood is apparently selling gamestop stock *without the owner's consent*. If that's true, it's blatant fraud.

Nope, they have traders in over their heads and have the right to close their positions. It is in the terms of service.

 

[Michael]

Nope, they have traders in over their heads and have the right to close their positions. It is in the terms of service.

How did Robinhood decide that these individuals were 'in over their heads' rather than simply making a political statement and making a conscious choice to 'peacefully protest" the system?

I see class action lawsuits in Robinhood's near future.

 

[VladTheEmailer]

According to this video, the hedge funds did it to themselves and the Redit folks just took advantage of it.

There is no fundamental reason for the stock to be trading at this level. What you are seeing is institutional traders taking advantage of retail traders.

 

[VladTheEmailer]

How did Robinhood decide that these individuals were 'in over their heads' rather than simply making a political statement and making a conscious choice to 'peacefully protest" the system?

I see class action lawsuits in Robinhood's near future.

I think what they did was wrong but, was it illegal?

In the end, the small traders are the only ones that will get crushed.

 

[Michael]

I think what they did was wrong but, was it illegal?

Of course it was. Suppose someone broke into my home without my permission and they stole my television and jewelry. Suppose they then claimed to "sell" my stuff to their best friend at dirt cheap prices. Then they come back into my house, again without my permission, and they put that money on my table with a note telling me what they did. They'd go to jail for doing all that without my consent.

In this case the only reason to break into peoples portfolios and "sell" that one particular stock is to stop main street from even being able to punish Wall street for it's overt theft and their stock price manipulation by engaging in the massive short selling of stocks.

In the end, the small traders are the only ones that will get crushed.

In the end, this was a *classic* example of the massive hedge funds and Wall street big boys conspiring to steal money from main street investors to the tune of billions of dollars. That is illegal behavior. No doubt about it!

 

[VladTheEmailer]

Of course it was. Suppose someone broke into my home without my permission and they stole my television and jewelry. Suppose they then claimed to "sell" my stuff to their best friend at dirt cheap prices. Then they come back into my house, again without my permission, and they put that money on my table with a note telling me what they did. They'd go to jail for doing all that without my consent.

In this case the only reason to break into peoples portfolios and "sell" that one particular stock is to stop main street from even being able to punish Wall street for it's overt theft and their stock price manipulation by engaging in the massive short selling of stocks.



In the end, this was a *classic* of example of the massive hedge funds and Wall street big boys conspiring to steal money from main street investors to the tune of billions of dollars. That is illegal behavior. No doubt about it!

No, it is not illegal. If they did what the subreddit is doing they would be in jail. Busting one of these companies is what people in the IRS and SEC live for.

You have crooks on wall street warning you not to be a fool and get involved in this mess, if you want to that's fine. if you want to through your life savings at this then, I will gladly accept it. What I'm trying to do is warn people that they are in for a rude awaking.

BTW, Short sellers are doubling down and retail traders don't have the capital to stop them. This short squeeze will fail.

 

[Michael]

No, it is not illegal.

It's *absolutely* illegal.

If they did what the subreddit is doing they would be in jail.

Wall street hedge funds do it all the time.

Busting one of these companies is what people in the IRS and SEC live for.

Except they haven't done anything about hedge funds engaging in short selling and stock price manipulation through short selling *ever*.

Unlike a massive hedge fund with a very few people making all the decisions with a large amount of cash, a subreddit forum is made up of *thousands* of individuals making individual decisions with small and relatively modest amounts of money. Nothing going on there could *possibly* be illegal.

You have crooks on wall street warning you not to be a fool and get involved in this mess, if you want to that's fine.

So why did Robinhood break into people's portfolios (financial homes) without their consent, and sell *one particular* stock at minimal value? They just took away the individual's right to invest their money as they see fit.

if you want to through your life savings at this then, I will gladly accept it. What I'm trying to do is warn people that they are in for a rude awaking.

They got a rude awakening alright. They got to become the victim of one of the biggest stock frauds of all time!

BTW, Short sellers are doubling down and retail traders don't have the capital to stop them. This short squeeze will fail.

I definitely see a class action lawsuit in Robinhoods future. They should be sued for false advertising too. They are not stealing from the rich to give to the poor, they're stealing from the poor to give to the rich! They should call themselves The Sheriff of Nottingham!
.

 

[VladTheEmailer]

It's *absolutely* illegal.



Wall street hedge funds do it all the time.



Except they haven't done anything about hedge funds engaging in short selling and stock price manipulation through short selling *ever*.

Unlike a massive hedge fund with a very few people making all the decisions with a large amount of cash, a subreddit forum is made up of *thousands* of individuals making individual decisions with small and relatively modest amounts of money. Nothing going on there could *possibly* be illegal.



So why dd Robinhood break into people's portfolios (financial homes) without their consent, and sell *one particular* stock at minimal value? They just took away the individual's right to invest their money as they see fit.



They got a rude awakening alright. They got to become the victim of one of the biggest stock frauds of all time!



I definitely see a class action lawsuit in Robinhoods future. They should be sued for false advertising too. They are not stealing from the rich to give to the poor, they're stealing from the poor to give to the rich! They should call themselves the Sheriff of Nottingham!
.

Nope, I have been with the same broker for 15 years and still have paper copies of the contract. It gives them the legal right to liquidate my positions in order to protect themselves. Now, that doesnt mean everything Robinhood did was legal.

People like you are so caught up in ideology that you dont see what is going on. This is day traders making money off of ignorance.