Note the language:
"An army of investors" "attacked" a hedge fund in order to "vanquish" them.
"Real questions about stock manipulation." "Has nothing to do with the fundamentals."
That's not the truth, actually. One autist on wsb said he liked that
$GME was getting a new CEO and encouraged others to buy. In true WSB fashion, a few started YOLOing into it, cause why not? This happens frequently on the forum. Users present their value theses, and others either validate or disagree (or just meme).
When the price started to rise due to others buying in (because they agreed with the original autist's thesis), some hedgie got mad and started making youtube videos railing against the price. Which lead WSB autists to realize...
wait... this "Hedge Fund" is just some jackass with a lot of cash under his belt who was naked shorting the stock and is now salty because the trade moved against him in a way he didn't expect.
Kerosene - meet camp fire.
(Didn't help that the Hedgie had anti-white genocide art plastered on the wall behind him, created by Cleon Peterson, but that was secondary to the salt mining).
This snowballed until a bigger hedge fund with even bigger naked shorts started to scream about fundamentals - and this during a 2 year span when 2/3rds of the dollars in existence will be printed by the central bankers. This hedge fund immediately ran to the government for an emergency loan to cover the cost of their naked shorting.
My understanding is that that particular hedge fund closed out this morning as the stock mooned overnight, causing a short squeeze unlike anything prior. If you had bought ITM calls expiring this Friday, yesterday, for about ~2000 dollars, you'd be up 13,000 dollars on those calls
right now. That's how much the stock has mooned. So this Hedgie owed something like 5 billion dollars on their naked shorts when they closed out this morning, IIRC.
So here's the conundrum the establishment now faces.
They establishment is accustomed to steamrolling the little guy. The markets have been exposed as little more than a bullying scheme wherein value is extracted from retail by big guys who can manipulate stocks at will.
The "obvious" solution will be to ban forums where stocks are talked about like this, to prevent any sort of investment dogpile in the future - because forums like this remove the "opaque-for-thee-but-not-for-me" nature of the markets (ie, Nancy Pelosi buying millions in 500 dollar call options on TSLA, weeks before Biden announces he wants to replace all federal vehicles with electric ones).
They're not going to ban retail market participation. No, they still want/need someone to screw over. They're just going to come after the forums where retail is getting smart and organized.
Which means reddit will probably shut down WSB in the coming days to avoid a government inquest and "take responsibility" in the name of "social responsibility."
The message to all will be clear: Stay in the cagie, wagie.
gab.com
