Tag: GME

WHY ARE HEDGE FUNDS GAMBLING WITH PENSION FUNDS?

One of the most disturbing facts to come out of the Melvin Capital collapse this week is that Gabe Plotkin was gambling with pension funds to naked short US retail companies (Gamestop and AMC theaters) into bankruptcy. When a company goes bankrupt hedge funds don’t have to pay taxes on their profits nor is there any proof they were counterfeiting shares. Just ask Bill Ackman how he drove JCPenney’s into bankruptcy with the same tactics.

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NYSE President: ‘Meme’ Stock Prices May Not Properly Reflect Demand

By John McCrank

NEW YORK (Reuters) – The prices of so-called meme stocks may be distorted because the majority of trades in those names are executed away from public exchanges where share price formation occurs, the head of the New York Stock Exchange said on Wednesday.

“Meme stocks,” which often start as low-priced, highly shorted stocks that users of online forums such as Reddit’s WallStreetBets rally behind, are some of the most heavily traded and volatile shares on any given day.

Shares of companies like video game retailer GameStop Corp and theater chain operator AMC Entertainment have whipsawed this year, with GameStop having rallied more than 1,600% in January alone, prompting trading halts by some brokers and sparking Congressional and regulatory hearings.

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Did Wall Street Bets Win? Big Banks Clamp Down on Shorting GME and AMC!

Via Gen Z Conservative

wsb beats the hedge funds

The Ongoing Victories in the GME and AMC Short Squeeze

One of the most exciting moments of 2021, so far, at least, was the populist uprising against the hedge funds in early February of 2021. As a quick refresher, that was when small investors, organizing largely on the Reddit forum r/Wallstreetbets (WSB), stuck it to the man by orchestrating a short squeeze of GME and AMC.

By buying GME and AMC (GameStop and the movie theater chain), both heavily shorted stocks, they were able to send the share prices skyrocketing, financially punishing the shorts (especially Melvin Capital) that were hoping GME’s share price would crater. Furthermore, because short sellers have to “cover” their positions if a share price rises, those were real losses that they suffered, not just paper losses. Hedge funds lost billions in days as the common man bought and held GME.

Continue reading “Did Wall Street Bets Win? Big Banks Clamp Down on Shorting GME and AMC!”