Bulls out of the pen. Wall Street, Trembling Giant Outraged, Beaten at own Game

January 28, 2021

This past week, GameStop (GME) and AMC Entertainment saw massive spikes in their stock. But what would beckon the question as to what news prompted this spike, is more like what group?

A subreddit group called “WallStreetBets” is a forum where “rookie” day traders— or “retail traders”— “go after heavily shorted stocks, pushing share higher and squeezing out short-selling hedge funds” reported CNBC. ” The brick-and-mortar video game retailer has skyrocketed a whopping 1,700% as retail traders continued to encourage each other to pile on. AMC Entertainment, another hot topic in the chat room, surged more than 300% Wednesday alone, experiencing its highest volume ever.”

These spikes have made a lot of people millionaires, while beating Wall Street at its own game.

While these stocks saw a subsequent decline, the damage was already done… and it was Wall Street that felt the brunt. WallStreetbets’ discord server has recently been removed. According to a Discord spokesperson, the group “has been on our Trust & Safety team’s radar for some time due to occasional content that violates our Community Guidelines, including hate speech, glorifying violence, and spreading misinformation. Over the past few months, we have issued multiple warnings to the server admin. Today, we decided to remove the server and its owner from Discord for continuing to allow hateful and discriminatory content after repeated warnings,” the spokesperson added.

That isn’t all. In a statement, Reddit spokesperson said “Reddit’s site-wide policies prohibit posting illegal content or soliciting or facilitating illegal transaction. We will review and cooperate with valid law enforcement investigations or actions as needed.” The subreddit has since been made available to the public again.

It’s no surprise that these actions are being taken. “Finesse” Advisor, whose comment isn’t standing alone, shared these tweets in response.

While we can attribute the group to the standards of whatever label of hate speech and censorship that big tech, mainstream media, and the court of public opinion would deem, the real questions still linger. Like, what does this mean for Wall Street? Well, NASDAQ CEO Adena Friedman has suggested that, in order to root out manipulation in the market, the NASDAQ exchange will “evaluate social media chatter, as well as suggesting that trading should be halted to allow big investors “recalibrate their position.”

Whatever these “evaluations on manipulation” will look like, it’s curious whether or not these same hedge fund and corporatists that are yelling bloody mary will apply the same standards they want to apply to retail investors to themselves.

To be clear, the hedge funds that have been “squeezed” have bet against these companies with positions known as “shorts”. These shorts can be in the form of outright shorting shares of a stock by selling borrowed shares and then buying them back at a lower price, or similarly buying options called a “put”. In either case, in order to make money, they are speculating that the underlying stock goes down. WallStreetsBets is composed of a group that decided to bet against these hedge funds by buying up the shares through stock and options, consequently sending these companies soaring. A “squeeze” occurs when a stock’s price begins to increase when it has a large amount of short sellers. Those shorts then limit their losses by scrambling to buy the shares back at a higher price, lest they continue to rise. They then lose the difference between the cost of the shares they borrowed at and the cost of the shares they purchased at.

Wall Street does not like this new “paradigm” as some are calling it; in fact, it’s hard to say if a new paradigm will really emerge, now that they will be battling the existence of these traders. It’s hard to speculate what will happen; but what we do know is that they’re outraged, trembling, and got rocked back by a community of investors that just made each other a lot of money. Sort of like Wall Street itself.

Charles Payne, Fox News Business contributor and host of Fox’s Making Money, describes his distaste with Wall Street’s moaning and complaining on his show.

 

Following up with a friend, (@tomorrowsveggies on Twitter, Instagram, and host of Matrix Unraveling on Spotify) he details this event as an example of ‘agorism’. “It’s the unifying social philosophy that side steps the socialist/capitalist bullshit argument. Keeping the anti-state aspects of capitalism, funnily enough, it’s the actionable aspect of anarcho-capitalism, without scaring away lefties who have great boots on the ground, mutual aid, and voluntary systems.”

From my understanding then, it’s a form of counter-economics. Counter to the corporatists that are now working to rewrite the rules so that they may never lose money to anyone that isn’t part of their circle. In other words, counter to the elitists that, hopefully, both political sides can agree, have way too much power.

 

Additional tweets:

Share.

With all this rampant censorship, we rely on our readers to spread our content.

Share on facebook
Share on twitter
Share on linkedin

Get curated news!

Subscribe

* indicates required
What topics are you interested in?