Gamestop frenzy

SpikiSpikester

There will be plenty of fund managers with long positions who are quietly raking in gains before the price inevitably plummets. And that's to say nothing about all the algo traders the public have never heard of, who will be momentum trading all the way up and nowhere to be seen during the dips.

IMO, it's not sticking it to the man when bucket loads of newbie investors get sucked in without any knowledge of how to time a sell when the bubble pops. Fun while it lasts, but the clean up could be horrible for a lot of normal people.

dsio

I’ve often wondered how this would look if the collectors did it to watch market speculators, like if you took a Speedmaster LE nobody currently cares about that has a small supply, like the Apollo 17 silver coin dial variant, bought up the stock floating around the market at the current low rate, hyped it up until the price shot up which has happened to many LEs like the Gemini 4 (I was responsible for hyping that one myself then sold mine before it shot up because my timing sucks), then dumped the bulk of the supply back into the market.

Foo2rama

Problem is that it’s past a short squeeze and it keeps going up in the theory they are sticking it to the man... wall streets has had no short position on GME for 3 days.

now it’s just retail investors taking money from retail investors.

My guess is people are going to go to jail for manipulation. I think they will find that the guys that fed this had an existing position then moved their position to AMC and tried again.

Observer

How do you figure that Wall Street has no GME short positions? From what I can see, the short interest is still over 100%.

Redwes25

I wouldn't exactly trust the short position numbers coming out right now as they are trailing numbers. However, I doubt all short sellers have managed to cover and believe there is a large short interest still but imagine they are doing so now. If I were in this trade (and I am not) I would start exiting my position while there are still shorts out there. Don't be a hog. Hogs get slaughtered.

Dor_42

Stole this from Reddit

SpikiSpikester

I agree - that isn't a reason for the buy ban & shouldn't be.

My guess is that there is some real legal and regulatory energy being spent on trying to navigate the inconsistent but punitive rules about market manipulation. The hedgies and quants I've spoken to in the last few years are understandably scathing and concerned about the regulators' inabilities to be consistent in their views about what counts as punishable "market manipulation" - it often seems to end up being a political calculation by regulators rather than a considered application of principle.

Not saying the brokers are right in what they did - it exposed a lot of people - but they likely have real concerns about being hammered out of existence by regulatory punishment and litigation if they aren't seen to be trying to avoid something that might retrospectively and arbitrarily be labelled as manipulation.

Of course, the net effect of all this is that it ends up reinforcing the existing system - but I think that just proves that you can't beat the system if you aren't intimately familiar with the endless rules as well as the fluid way the referees game them.