Can’t Stop. Won’t Stop. Gamestop.

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    • #398880
      Scott Crowder
      • Total Posts: 923

      The game is being gamed.  If you haven’t heard what’s happening to Gamestop, the company that’s sales are down 300%, is closing their stores and whose stocks are up 2000%, here is how the 99% are kicking the shit out of the 1%, literally stealing billions back from them.

      They are exploiting hedge fund managers like Melvin Capital, who have lost 3.75 BILLION dollars.  Back last summer, Gamestop was worth $4 a share.  Now it is at $200.  Why?  Guys at Reddit saw an opportunity to make a Short Squeeze.

      What is a short squeeze?

      When short-sellers bet a stock will decline, what they effectively do is sell shares they don’t have, with the promise of delivering those shares to the buyer at a later date. That’s where the term short-sale comes from.

      The problem is that if the stock goes up instead of down, short-sellers must quickly buy the shares they don’t actually own to avoid further losses. If many short-sellers all think that a given stock will fall, as they were with GameStop, which hasn’t turned a profit in three years, and the stock goes up, mayhem can ensue in the rush to buy shares.

      This isn’t rocket science.  Anyone can jump on the short squeeze bandwagon and start raping Wall St.  Things you need to know:

      “Days to Cover” or “Short ratio”.  This is how long it will take a company that has shorted a stock to buy up the shares they don’t actually own.  It is easy to calculate and I just love the analogy one reddit poster used:  Imagine you have a million dildo’s up your butt.  If you can only pull out one dildo a day, your going to take one million days to pull them all out.  If on a typical day 20,000 dildo’s get pulled out your butt, it’s going to take 50 days.  You can look on websites like,, etc. to find out how many days it will take a company to buy up all its short shares.  that is the days to cover.

      Let’s look at the current rape of Melvin Capital.  They shorted GME Army.  It will take them 6 days to cover that.  Everyone starts buying GME Army and driving up the price, because stocks aren’t a meritocracy, it doesn’t matter if the company is in the tank for its stock price to be driven up.  Say tomorrow MC sees they’re getting screwed.  They start buying up stocks on Friday.  It won’t be until next Friday that they’ve bought up all the stocks they need to cover their short.

      Meanwhile, people KEEP buying up GME.  Now GME’s days to cover are based on how many stocks they typically sell.  But with people buying up GME, that makes the days to cover go even higher, because while Joe Reddit user is buying up GME stock, MC is now competing in a brutal market of lots of buyers, few sellers.  So they can’t cover their short and they are getting raped.  By Thursday, when the stock has hit its highest, Joe Reddit user starts selling off his stocks, makes a tidy profit and MC has taken it up the shorts, quite literally.

      Transfer of wealth from the 1% to the 99%.

      And it’s perfectly legal, for now.  Whaddya wanna bet the same govt. that can’t dole out covid relief can suddenly bail out hedge fund managers?

      "The possessions of the rich are stolen property." Pierre-Joseph Proudhon
      “The two greatest obstacles to democracy in the United States are, first, the widespread delusion among the poor that we have a democracy, and second, the chronic terror among the rich, lest we get it.” Edward Dowling
      "The poverty of our century is unlike that of any other. It is not, as poverty was before, the result of natural scarcity, but of a set of priorities imposed upon the rest of the world by the rich." John Berger

    • #398897
      Ohio Barbarian
      • Total Posts: 24,654

      So thanks. And I’m sure new legislation will be forthcoming to prevent predatory hedge funds from being hoisted on their own…let’s just stay traditional and say petards.

      Never let your morals stop you from doing the right thing.--Isaac Asimov

      The United States is also a one-party state but, with typical American extravagance, they have two of them.--Julius Nyerere

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