Posted on 01/29/2021 3:45:29 PM PST by TigerClaws
The astronomical rally in GameStop has imposed huge losses of nearly $20 billion for short sellers this month, but they are not budging.
Short-selling hedge funds have suffered a mark-to-market loss of $19.75 billion year to date in the brick-and-mortar video game retailer, including a nearly $8 billion loss on Friday as the stock kept ripping higher, according to data from S3 Partners.
Still, short sellers mostly are holding onto their bearish positions or they are being replaced by new hedge funds willing to bet against the stock. GameStop shares that have been borrowed and sold short have declined by just about 5 million over the last week, marking an 8% dip in the short interest, according to S3. Most of the short covering occurred on Thursday, when the stock fell for the first time in six days.
What to know about Robinhood’s emergency cash situation “I keep hearing that ‘most of the GME shorts have covered’ — totally untrue,” said Ihor Dusaniwsky, S3 managing director of predictive analytics. “In actuality the data shows that total net shares shorted hasn’t moved all that much.”
“While the ‘value shorts’ that were in GME earlier have been squeezed, most of the borrowed shares that were returned on the back of the buy to covers were shorted by new momentum shorts in the name,” Dusaniwsky added in an email.
Shares of GameStop, along with other heavily shorted stocks, spiked once again Friday, after Robinhood said it was resuming limited trading of previously restricted securities. The gain pushed GameStop’s rally this week to over 400% and this month to more than 1,600%.
The video game stock has been the star of the show on the WallStreetBets Reddit forum, whose membership has grown rapidly to over 5 million. A wave of day traders continued to encourage each other to pile into GameStop’s shares and call options, creating a massive short squeeze that inflicted pain for hedge funds betting against the stock.
The borrow fee on GameStop’s stock — or the cost-to-borrow shares for the purpose of selling them short — jumped to 29.32% on existing shorts and 50% on new short positions, S3 said.
“If most of the shorts had covered, we would not be seeing stock borrow rates at these high levels — by now you would be able to borrow GME stock at single digit levels due to an increase in the lendable stock loan supply due to borrowed shares being returned after all the ‘supposed’ buy-to-covers,” Dusaniwsky said.
GameStop remained the most-shorted name in the market as short interest as a percentage of shares available for trading stands at 113.31%, S3 said.
‘You’ve won’ — Cramer tells investors to take home run and sell GameStop Short selling is a strategy in which investors borrow shares of a stock at a certain price in expectations that the market value will fall below that level when it’s time to pay for the borrowed shares.
Gamestop needs to start selling shares to convert the stock price to cash. Then it will be locked at a higher price because they are a cash rich company. The shorters would be royally screwed.
A lot of RobinHood’s customers closed their accounts and moved to commission-free trading app Webull (https://apps.apple.com/us/app/webull-investing-trading/id1179213067) which is not limiting trades or seizing assets. This is in addition to Asians and Europeans joining the feeding frenzy against the hedge funds.
My advice to FReepers is DO NOT SHORT GME. It will break you. I own no shares of GME.
There are very few available shares which have a 35% maintenance fee. I own no shares but see how savvy the Retards are. They are purchasing short term options and exercising them immediately to obtain shares US brokerages have prohibited them from buying. 100s of shares.
Seriously - how do they cover these losses?
"Margin call, gentlemen."
'Why you can't expect...'
" You know the rules. All accounts to be settled at the end of the day's trading, without exception."
'You know perfectly well, we don't have $394 million in cash.'
"I'm sorry, boys. Put the Duke brothers'seats on the exchange up for sale at once. Seize all assets of Duke & Duke Commodity Brokers, as well as all personal holdings of Randolph and Mortimer Duke."
It’s going to collapse.. just a matter of when and all those losses will come pouring right back in..
Just a question of when...
Go get a bailout from Congress.
Bigger concern is they liquidate the other holdings of the hedge fund and it tanks the market.
Really a time to short this stock
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
On one level, I suspect your right because it is so overpriced at $325 and it of course will eventually come down. However, here’s the problem... Shorting a stock requires an account with a certain amount of margin......the standard margin requirement being about 150%. This means that one has to come up with 50% of the proceeds that would accrue from shorting a stock. It’s a lot cheaper to short a $5 stock than a $325 one.
It gets better.... the reason GameStop was targeted was because it was noticed by the WSB crew just how much of the float of GameStop was being shorted. What do you think that this same crew would do if they see that they are shorting at the current price of $325?
The price?
The redditors are all buying and think it’ll go up to 1000-5000 a share.
So when does it “collapse”?
These are kids playing with fun money. They DGAF about losing it all. It’s the game. Destroy the bastards that stole mom and dads house ten years ago. “Diamond hands”... “hold the line.””
We can stay retarded longer than they can stay solvent!
To the moon!
HOLD GME.
this is not stock advice I just want to see some hedge fund jerks lose their shirts
Darn straight
BOMBSHELL ALLEGATION: Man Claims To Be Robinhood Employee & Says The White House Pressured Halt of GameStop Trading
https://breaking911.com | By T. Grant Benson - January 28, 2021
Fueled by the “WallStreetBets” Reddit forum, GameStop’s market value has risen over 466% this week.
Thursday morning, Robinhood, one of the top free trading apps, put restrictions on trading $GME (GameStopCorp.) This action was immediately met with backlash across the internet. One Reddit user, Odin19199, claiming to be an employee of Robinhood, stated that the company was pressured to halt GameStop trading by Sequoia Capital and the White House. These allegations have not been independently confirmed by Breaking911.
In the post, he alleges that he overheard that “Vladimir, yes founder Vladimir [Tenev], and the C-Suite, received calls from Sequoia Capital and the White House that pressured into closing trading on GME.”
The user then goes on to state that he has information and documentation regarding the situation that he is planning to provide to Project Veritas and lawyer Glen Greenwald.
The newly-confirmed Treasury Secretary, Janice Yellen, has financial ties to one of the hedge funds that came to the aid of Melvin Capital, one of the companies that saw large losses after GameStop’s market surge. Yellen’s financial disclosure shows her receiving around $800,000 from Citadel for speaking fees.
“The people buying into these stocks would be wise to sell and cash in their chits.”
Except the short % is >100% of shares outstanding. It’s a no lose for the Retards. They can sell all they want at higher than their entry point because of the >100% shares shorted. They can’t lose -even if they all sold everything there’s still more shorted shares outstanding.
}”Samantha LaDuc
@SamanthaLaDuc
·
4h
SO many money quotes on $GME short squeeze from $IBKR founder Peterffy!
500K accts have GME in some form (IB has ~5%)
$15B in losses that need to be covered
Smaller brokers cannot pay to cover
Counter-party risk is real. Solution is put stocks into liquidation. The End”
It’s all fun and games until your 401k gets hit from the fall out
Ryan Geisler
@RyanEGeisler
I think the narrative surrounding $GME, etc., might be missing something. #RobinHood and #interactivebrokers had such poor risk management for margin and the types of contracts they were allowing that the counter-party risk became so great that they had to kill the game...\
Ryan Geisler
@RyanEGeisler
·
Jan 28
Replying to
@RyanEGeisler
before it went any further. In other words, the “suits” didn’t shut it down. The terrible risk management by the brokers led to a “long-squeeze” before the short-squeeze could happen. This also makes sense when considering why the brokers would throw themselves on the sword?
My 18 year old son took his $500 of Christmas money and made $10,000 on GameStop. No kidding
This is definitely a market acting very toppish
____________________________________________________________
Co-worker, single guy, took a 401K loan early on and turned $3K into $30K and then sold. Others have made a few hundred over the past month.
thanks for that info
.....
somebody has to take the risk during the
two days between trade and settle.
who is that for RH?
nobody wants that risk
Wall Street rigged a game 100 years ago.
https://mobile.twitter.com/dollarsanddata/status/1354561444780646401
Had never heard this story before today. Piggly Wiggly.
If the shorts are not budging (unwinding their shorts) then this can still go much higher.
Now multiply that by potentially millions of “digital vandals.” You can see how ludicrous and simple it all is.
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