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The Magic Cafe Forum Index » » Not very magical, still... » » Gamestop/Reddit? (4 Likes) Printer Friendly Version

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landmark
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I'd appreciate it if someone could explain in non-technical language what's going on here. It seems verrry interesting, but I'm not sure I completely understand it.
mantel
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I don't understand it either. But it could be "pump and dump".
Rook
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I went to the Magic Cafe and all I got were these lousy
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I could be misunderstanding this, but this is what I'm getting:

Gamestop is failing as a corporation, so various stockbrokers are short-selling (borrowing stock, sells it, then when the company busts, buys it back cheap to return it to the lender, thus making a profit). Essentially, short-selling is a bet that the company will fail.

Folks on Reddit, seeing this happen and recognizing that the stock was cheap started buying up the stock just for fun. From the sheer number of people buying the stock, it created the illusion of a rebound for Gamestop, and other brokers got interested in Gamestop again.

Suddenly, Gamestop was doing well in the stock market and the the short sellers are losing their shirts on their bets due to the Redditors.

I could be mistaken, though.
Those who don't believe in magic will never find it.

-Roald Dahl
tommy
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Well, the big boys think that competition is a sin. So, the big boys do whatever is necessary destroy the competition. The on-line big boys are out to destroy high street shops. The buy up the brand names but not the shops. The shop workers get sacked because it is a big expense. My guess is that is what is going generally.
If there is a single truth about Magic, it is that nothing on earth so efficiently evades it.

Tommy
mantel
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I don't understand exactly how, but people from reddit almost made Melvin Capital dissappear. Melvin Capital lost about $1500000000 and they had to get a bailout for $3000000000 .
Tom Cutts
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Melvin Cap made a play. As Rook said they borrowed shares to short. One problem... they (and others) borrowed more shares than actually exist. (From what I have read). Now they have to buy (At a loss) the stock they borrowed.

And they want to spin it as they got played, when it was they who were playing.

But if they can prove some form of collusion on the part of Robinhood/Reddit groups, then there might be a secondary issue which will be used to hide the primary issue. A hedge fund was manipulating the market price of a stock. The rich don’t want you knowing this is commonplace for them.
Jonathan Townsend
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Someone said they can stop trading on a stock... because. Who gets to decide?
...to all the coins I've dropped here
gaddy
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Not us, Johnathan... Not. Us.
*due to The Magic Cafe's editorial policies, words on this site attributed to me cannot necessarily be held to be my own.*
tommy
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This explains it quite simply I think.

https://www.youtube.com/watch?v=wZHkWGHdmNE
If there is a single truth about Magic, it is that nothing on earth so efficiently evades it.

Tommy
Jonathan Townsend
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...to all the coins I've dropped here
landmark
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Most of the articles I have been seeing today ignore or downplay something which appears to be true about the GameStop traders: a certain minority, maybe a large minority, maybe even a majority of those traders, don't care if they lose their investment. They just want to have a sense of empowerment in what is basically a rigged environment. And it's worth it to them to gamble away a few hundred. I think it is similar to the way the last President came to power--not so much that people wanted to see him in power, but people feel so disempowered that they want to mess with the system so that they can feel a little bit better about their situation. They feel the normal channels have passed them by.
magicfish
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Are you speaking on behalf of all 62 million of them?
landmark
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Quote:
Are you speaking on behalf of all 62 million of them?


???

Quote:
a certain minority, maybe a large minority, maybe even a majority of those traders
magicfish
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"I think it is similar to the way the last President came to power--not so much that people wanted to see him in power, but people feel so disempowered that they want to mess with the system so that they can feel a little bit better about their situation."
Now see my question and comment above.
Hope that clears things up.
landmark
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Quote:
I think it is similar to the way the last President came to power


Quote:
a certain minority, maybe a large minority, maybe even a majority


The exact opposite of speaking for 62 million of them. Clearly speaking about the motives of *some* supporters.
magicfish
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You mean what you think MIGHT be their motives.
landmark
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People have self-reported that view of why they voted the way they did on Twitter, FB, etc. It's part of the public record.
magicfish
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They better say that, or Dorsey and Zuckerberg will ban them. You know, Dorsey. The guy with the piercings and the neck tattoo. The most powerful man on earth.
Your "matter of record" isn't mine.
Jonathan Townsend
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Cryptocurrency with virtual machine computing looks interesting. Saw one recently advertised that did not take dollars or paypal though - offering prices in bitcoin. BTW there's some discussion about DOGECOIN (doggy coin) price that looks ... interesting too.

Here's a discussion that keeps us out of /reddit: --> https://www.coindesk.com/top-5-dogecoin-pumps
...to all the coins I've dropped here
landmark
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Jon, are the cryptocurrency markets subject to short trading as well? Because some people on the WSB board *explicitly* stated they were buying GameStop to screw with Melvin Cap's short trades.
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