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.
The $300 price for a $10 stock also lures in new shorts. So who is going to blink first? The shorter who has to cover and pay a premium fee or the Retards who buy the stock for $300 and never have to sell? The cost of holding an open short is expensive and unlimited risk. The cost of holding a $300 stock is at most -$300. Not selling drives up the price when the short has to cover. Collectively, the Retards can’t lose.
But the REAL value is for me, who can watch this train wreck from the sidelines with no skin in the game - and laugh my ass off. Funnier than Benny Hill, it is...
“Gamestop needs to start selling shares to convert the stock price to cash.”
That may take more time than the house of cards can remain standing?
‘Things that can’t go on forever, don’t.’
“Collectively, the Retards can’t lose”
I knew someday, my superpower would prevail.
The cabal is terrified the stock isn’t going to come down by 2/1. They were hoping the little guys would dump their positions by close of business Friday leaving Melvin and Citadel a chance to after-hours buy and save themselves.
The little guys made sure that wouldn’t happen. Price is at $323. The float is 45M shares. Citadel and Melvin shorted 140 percent of the stock. They have to come up with about $21B before 2/1.
Any hope of that will die Sunday if the price stays where it is. Do not doubt these idiots are looking for a way out this weekend. I’ve already seen the words ‘systemic risk’ bandied about on CNBC.
$71B in short positions after close of business today. You thought the cabal was panicking during the inauguration, now it is intergalactic. Elites are losing their minds right now. I watched Charlie Gasparino get into it with Charles Payne. Gasparino was desperate, totally in the tank with the hedge fund guys.
Payne was kicking their asses. He’s pissed. Back on Jan 11 he was suggesting buys in most of the stocks these idiots have been shorting. His customers made enormous money this month.
I’m still pissed about 2008. Cost me my business, wife, job, and house. I am having the Friday of my life.
Eventually it will fall back to reality. Hell even today if you timed the stock right you would have made 35% doin short sale...
There is no doubt the stock will come back down and the shorts will make all the money back “lost” during the run up...
May be different players that’s get that money, but it will be made
And that is the spirit these criminals have awoken in We The People when they rigged an election in broad daylight with impunity. They broke a fundamental social contract and when votes don't matter, neither do politicians, so people will turn to other channels to address their needs.
These aren't just hedge fund a-holes; these are the same people paying off politicians like SEC Janet Yellen with $800,000 of "speaking fees" to help them steal money from U.S. citizens.
The best rebuttal I've seen so far is "I can stay retarded longer than you can stay solvent."
...not so retarded after all.
These financiers who helped rig an election in broad daylight with impunity may find that there are exposed in a lot of ways.
Mark to market.
Not sure about hedge funds, but accounting rules for Business is clear.
You HAVE TO revalue your securities to MARKET VALUE and report the gain or loss on your monthly financial
You can be sure that other hedge funds are long, playing the upside momentum. I have no dog in this fight. As they say on the street, standing aside is a position too.
They start selling off other stocks, even at a drastic loss, to cover their shorts. Good luck finding buyers who'll pay top dollar in the economy that Wall Street set up by stealing an election. I wonder if they'll ask SEC Janet Yellen to return some of her $800,000 of "speaking fees".
They'll regret chasing out President Trump, the one non-politician who really wanted to Make America Great Again. A strong economy would have precluded the shorting and would also have given these funds other stocks of increasing value.
Raising a beer to you, brother. Crash these thieving MFers who thought nothing about the lives they DESTROYED in 2008/2009.
Want to see them crash and burn. Then move to the next target. Would be nice to see all the leftist fake capitalists that give billions to Dems to rig the system, fly private jets, and lecture us about ‘climate jets’ and ‘learn to code’ while paying off colleges to take their kids go down.
BURN
DOWN
THIS
MOTHER!
Cheers to you. Better days ahead.
Enjoy the flames.
How do we, say, destroy someone like Soros?
Didn’t he short a currency?
Find him and his types doing a play like that and BURN THEM TO THE GROUND.
Without their money, what they got? Nothing.
We got numbers. We get the info now. It’s all public.
GME is just the first step. WE have to go VietCong on these bastards and take them out economically, legally, smartly.
“You can be sure that other hedge funds are long, playing the upside momentum.”
No, they’re not. Their trading algorithms tell them paying $300 for a $10 stock is a retarded trade which they won’t make. But shorting a $300 stock that’s worth $10 is a big green signal. Welcome to the bear trap. Before long they will use updated algorithms and software to identify ‘flash mob’ bear traps and avoid shorting them until they lose momentum. Only the dumb ones will stay in their short position after the retards arrive. Though it’s very difficult to outrun a mob.
The problem these criminals have created for themselves is that money is based on trust. Once they openly threw that trust away by rigging an election, everyone (and not just those within the United States) knows who they are and can adjust accordingly.
It's going to be crazy to see the depths these criminals go to in order to protect their syndicate.
Now the world knows why these criminals really loathe President Trump and broke every law they could to stop him, including collusion with Communist China and Blue States to shut down the economy - he showed the world exactly who these criminals are.
121% is shorted
now i dont feel so bad, bought a few shares yesterday
Uh yah don’t hold your breath.🙄
They apparently aren’t in it to make money.🤔
The thing is if they’re using their stimulus checks to buy the stocks they could buy 30 stocks for $20 each then sell two at $300 to get their money back and just sit on the rest.
Now imagine one million retards doing this.😯
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.