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๐™’๐™–๐™ก๐™ก ๐™Ž๐™ฉ๐™ง๐™š๐™š๐™ฉ ๐˜ฝ๐™š๐™ฉ๐™จ ๐™ซ๐™จ. ๐™’๐™–๐™ก๐™ก ๐™Ž๐™ฉ๐™ง๐™š๐™š๐™ฉ (GameStop)

If youโ€™re not up to speed with the craziness, a group of people on Reddit have been short squeezing Gamestop. A CNET video explaination here:


If youโ€™re not up to speed with the craziness, a group of people on Reddit have been short squeezing Gamestop. A CNET video explaination here:

youtu.be/ZoPEaBAe0CY

Anywayโ€ฆ lesser known facts

๐™๐™๐™š ๐™œ๐™ช๐™ฎ ๐™ฉ๐™๐™–๐™ฉ ๐™ ๐™ฃ๐™ค๐™ฌ๐™จ ๐™ž๐™จ ๐™ž๐™ฃ ๐™›๐™ค๐™ง $๐Ÿญ๐˜ฝ๐™ฃโ€ฆ

---------------------

So let's quickly look at the timeline:

๐Ÿ‘‰ Wall Street builds shorts in Gamestop $GME (GameStop Corp New), to an eye watering 140% of all stock! Making them a flashing target for a short squeeze

๐Ÿ‘‰ A reddit group WSB (wallstreetbets) started discussing rallying together to create a huge short squeeze for Gamestop (among others) by buying short dated options, mostly on the stock trading platform Robinhood (the US commission free stock trading app that also sells options).

๐Ÿ‘‰ It works! (at least for a while) the share price goes through the roof, making some redditers a ton of money, and leaves Wall Street funds reeling losses. ---------------

There are a number of high profile characters to this story, but there's a particularly interesting one - Melvin Capital.

Melvin Capital is a $12Bn hedge fund that was openly short $GME, and is now down over 30% for the year! Since losing big on this trade, theyโ€™ve received $๐Ÿญ๐˜ฝ๐™ฃ ๐™ค๐™› ๐™ž๐™ฃ๐™›๐™ก๐™ค๐™ฌ (investment) from ๐™†๐™š๐™ฃ ๐™‚๐™ง๐™ž๐™›๐™›๐™ž๐™ฃ, ๐™ฉ๐™๐™š ๐˜พ๐™€๐™Š ๐™ค๐™› ๐˜พ๐™ž๐™ฉ๐™–๐™™๐™š๐™ก, one of the most formidable names in Wall Street. Now this is interesting, because Citadel, ๐™—๐™ช๐™ฎ๐™จ ๐™ฉ๐™๐™š ๐™ฉ๐™ง๐™–๐™™๐™š ๐™›๐™ก๐™ค๐™ฌ ๐™›๐™ง๐™ค๐™ข ๐™๐™ค๐™—๐™ž๐™ฃ๐™๐™ค๐™ค๐™™. Meaning Ken can see everything Robinhooders are doing.

โญ ๐™๐™๐™š ๐™ฆ๐™ช๐™š๐™จ๐™ฉ๐™ž๐™ค๐™ฃ ๐™ž๐™จ, ๐™ž๐™› ๐™ฎ๐™ค๐™ช ๐™๐™–๐™™ ๐™–๐™˜๐™˜๐™š๐™จ๐™จ ๐™ฉ๐™ค ๐™–๐™ก๐™ก ๐™ฉ๐™๐™š ๐™๐™ค๐™—๐™ž๐™ฃ๐™๐™ค๐™ค๐™™ ๐™™๐™š๐™–๐™ก ๐™›๐™ก๐™ค๐™ฌ/๐™ฉ๐™ง๐™–๐™™๐™ž๐™ฃ๐™œ ๐™™๐™–๐™ฉ๐™–, ๐™ฌ๐™ค๐™ช๐™ก๐™™ ๐™ฎ๐™ค๐™ช ๐™จ๐™š๐™ฃ๐™™ ๐™ˆ๐™š๐™ก๐™ซ๐™ž๐™ฃ ๐˜พ๐™–๐™ฅ๐™ž๐™ฉ๐™–๐™ก $๐Ÿญ๐˜ฝ๐™ฃ?

Probably not, unless you were certain Melvin had a plan to nail the end game of this trade war.

๐™„ ๐™ฉ๐™๐™ž๐™ฃ๐™  ๐™ž๐™ฉโ€™๐™จ ๐™›๐™–๐™ž๐™ง ๐™ฉ๐™ค ๐™จ๐™–๐™ฎ ๐™ฌ๐™š ๐™ ๐™ฃ๐™ค๐™ฌ ๐™๐™ค๐™ฌ ๐™ž๐™ฉ ๐™ฌ๐™ž๐™ก๐™ก ๐™š๐™ฃ๐™™. ๐˜ฝ๐™ช๐™ฉ ๐™ฌ๐™๐™–๐™ฉ ๐™– ๐™ง๐™ž๐™™๐™š๐ŸŽข! ๐™Ž๐™ฉ๐™–๐™ฎ ๐™จ๐™–๐™›๐™š!

Robinhood has gone on to pause trading on the stock, investors have raised a class action lawsuit to forbidding them to buy GME and the stock has started to tumble.


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