Basically a bunch of day traders beat big market wall street at their own game… Now they have to call in their short sells at such an outrageous price because that is what the stock is currently priced at… instead of where they thought it would be. All of it is perfectly legal, but I’d expect our government is now going to have to bail out some big name wall street firms.
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I’m …ing hate you… because I’m a jelly.
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All I know is that I lost a fortune in frozen concentrated orange juice futures.
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Thank you for this. I’ve been scratching my head about these hedge fund guys.
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I edited my post up top with a kind of a possibly confusing WoW analogy.
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Pretty much this. They’re claiming to do it to stick it to hedge fund firms, but I imagine some people bought in to actually try to make money off of it; most of them are going to be disappointed.
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I just hope everyone’s take away on this is that the stock market has never been an accurate indicator (or even close to being representative) of what our economy actually is.
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The best tl;dr explanation of how the game is rigged (not hyperbole) on Wall Street - read @toxic’s latest threads. The hedge funds and major institutions literally print money buying buying and selling before retail traders even get their orders filled.
https://twitter.com/toxic/status/1353890766800621569
Btw, “RH” is Robin Hood, one of the Millennial crowd favorite trading apps.
You’ll never see stock trading personalities like Cramer talking about this like this.
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Buy hold make the hedge fund die
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it is something wall street guys do all the time to manipulate stocks for short term gains
this time it was the little guys, the people, and wall street doesn’t like losing their total control over such things
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lol. Citadel is the biggest hedge fund you probably never heard of. They pretty much dwarf all hedge funds. They ‘see’ RH trades before they get filled so they ‘know’ where the guaranteed profit will be. Guaranteed means sure thing, in the bag profit.
tl;dr: some hedge funds win while others lose, no net change
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TBH, i wasn’t trying very hard with that example.
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I imagine there’s going to be some civil suits flying for punitive damages soon, but I’m no legal or financial expert.
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Don’t be so modest.
trump decimated the federal government ranks. The SEC has been toothless. I wonder if Bernie Madoff had survived to the trump administration he still might be in business with massive fraud.
The Biden administration seems to be following in the Obama administration footsteps (Obama hired lots of ex-Clinton advisors) and appears willing to not pursue white collar financial crimes.
tl;dr: it would be shocking if anything happened legally and monetary damages or jail time were meted out
I don’t think the SEC needs to get involved for the hedge funds to file their own suits, although I’m pretty confident that WallStreetBets won’t be able to compensate for $4B+.
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It’s not really the revolution people are saying it is. Those hedge funds are made up of people’s money. It’s not the manager’s money they just take a cut. So X company’s pension plan buys into Y hedge fund because they never lose. Now that they’ve lost big those pensions are gone and Y hedge funds managers just go “whoops you knew there was risk! This is your fault average joe whose pension made up .000001 of the hedge fund.” I mean they have egg on their face but they’re always using other people’s money.
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r/wallstreetbets has nothing to worry about. What they did was absolutely and completely LEGAL. They organized their manipulation of the market in the public domain, which means it was NOT insider trading. What they did, hedge funds have been doing for decades, because hedge funds cooperate with each other to manipulate stock prices. What they did is no different than a Wall Street Analyst making a prediction on the market and telling his customers what they should do.
The only thing the SEC can do is institute new regulations to try to stop what they did from happening again.
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sips tea
cozy not worrying about money stuff
https://c.tenor.com/HJvqN2i4Zs4AAAAj/milk-and-mocha-cute.gif
Something doesn’t have to be against the law to be tried in civil court, though trying such a case would be a hell of a mess with how many were involved.
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