Authors Aaron Palmer
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>more than half of all robinhood users own some gamestop stock
Okay, this is starting to make sense, I'm about to do a massive infodump in the comments, get ready folks.
The tl;dr is this: Melvin Capital made an overleveraged short on gamestop last week which was floated to 140% of all available shares. Since xmas GME has been doing well thanks to console releases and so on. Few days ago, a new CEO from Chewys got on board and price 2x to $40
A user on reddit, deepfuckingvalue had been holding it and buying various pulls on the stock since last year as a YOLO option with a possible initial investment of $56,000. It has since ballooned to tens of millions if he sells it at all.
So, with that redditor being popular last week as well as the leveraged shorts that Melvin explicitly went on youtube/social media to call resulted in WSB jumping on them for even daring to short it. As such, media attention started to pop up and speculation happened.
On Friday, the 21st, a gameplan was made to pump the stock up to initiate the beginning of a short squeeze and prevent the shorts from profiting for melvin & citron (another hedge fund that also shorted GME). For whatever reason, the stock price jumped up to $69 at EOD.
Okay, this is starting to make sense, I'm about to do a massive infodump in the comments, get ready folks.
More than half of all Robinhood users own at least some GameStop stock.
— Motherboard (@motherboard) January 28, 2021
They are now unable to freely trade it; the app is only allowing users to close out their positions. https://t.co/DgN1H496wx
The tl;dr is this: Melvin Capital made an overleveraged short on gamestop last week which was floated to 140% of all available shares. Since xmas GME has been doing well thanks to console releases and so on. Few days ago, a new CEO from Chewys got on board and price 2x to $40
A user on reddit, deepfuckingvalue had been holding it and buying various pulls on the stock since last year as a YOLO option with a possible initial investment of $56,000. It has since ballooned to tens of millions if he sells it at all.
So, with that redditor being popular last week as well as the leveraged shorts that Melvin explicitly went on youtube/social media to call resulted in WSB jumping on them for even daring to short it. As such, media attention started to pop up and speculation happened.
On Friday, the 21st, a gameplan was made to pump the stock up to initiate the beginning of a short squeeze and prevent the shorts from profiting for melvin & citron (another hedge fund that also shorted GME). For whatever reason, the stock price jumped up to $69 at EOD.