Yes the whole thing stinks of foul play. The only thing that will bring them undone is if the small investors continue to hold,but that requires discipline which seems lacking going by many of the redditors. Hopefully i'm wrong.
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Yes the whole thing stinks of foul play. The only thing that will bring them undone is if the small investors continue to hold,but that requires discipline which seems lacking going by many of the redditors. Hopefully i'm wrong.
oh I don't know, I don't think there was too much sold off today by retail, tomorrow will be more fun and games no doubt. Sure it beats sitting watching TV ! :)
Nirish, please excuse the big copy n paste,but I thought you should see this,assuming you haven't already.
Mind you I don't pretend to understand it . lol
It goes without saying ,this could be a load of nonsense or could be precisely whats happened, i'm in no position to say...that's for you to decide...lol
TLDR; Melvin and gang hasn't covered shit. They've been illegally "closing out" their short positions and if we hold they will 100% get fucked. There is far more nefarious shit at play.
So this morning I saw the S3 and Ortex data both report significant covering of short positions for GME. This absolutely threw me for a loop because Friday morning they reported above ~120% short interest still. I could not for the life of me figure out how someone could close >50% of short positions on such a tightly held stock in ONE day with very little trading volume in the week. This got me digging around to figure out what's up.
I started by looking into GME failed to delivers (i.e. short sellers not able to cover their position on a stock) for the first half of January and I was shocked to find that just in the first 15 days of Jan, GME had ~1.2 MILLION failed to delivers. This is before most of wsb or mainstream began buying.
What was interesting though, is that of that ~1.2million, ~700K shares were covered in chunks throughout the two week period. I dug further back into the SEC failed to deliver reports for GME and saw that pattern extending back months. It seemed almost as if the short positions were just being kicked down the road.
Having spent some time looking at the pattern, it's clear a large amount of failed to delivers come in, then a small chunk of coverage, then another large amount, and so on. To me this looked shady af so I looking into reasons that could cause that and discovered this article: https://www.sec.gov/about/offices/oc...risk-alert.pdf
In it, a specific section is eerily similar to what we've experienced with GME:
"Assuming that XYZ (e.g. GME) is a hard to borrow security (e.g. apes holding strong), and that Trader A (Melvin), or its broker-dealer, is unable (apes again) to borrow shares to make delivery on the short sale of actual shares, the short sale may result in a fail to deliver position at Trader A’s clearing firm. Rather than paying the borrowing fee on the shares to make delivery, or unwinding the position by purchasing the shares in the market, Trader A might next enter into a trade that gives the appearance of satisfying the broker-dealer’s close-out requirement, but in reality allows Trader A to maintain its short position without ever delivering on the short sale. Most often, this is done through the use of a buy-write trade, but may also be done as a married put and may incorporate the use of short term FLEX options. These trades are commonly referred to as “reset transactions,” in that they have the effect of resetting the time that the broker-dealer must purchase or borrow the stock to close-out a fail. The transactions could be designed solely to give the appearance of delivering the shares, when in reality the trader has no intention of meeting his delivery obligations. Such transactions were alleged by the Commission to be sham transactions in recent enforcement cases. Such transactions between traders or any market participants have also been found to constitute a violation of a clearing firm’s responsibility to close out a failure to deliver."
It's almost like a play by play of what we've seen (in combination with the ladder attacks). My guess is we'll find out more when the failed to deliver report for the second half of Jan comes out on the 17th.
I 100% think that Melvin is committing massive securities fraud. In fact, I would bet all my money on it - oh wait, I did 96 GME @ 290.
I am now holding on principle to see these fucks fail.
More DD: https://www.reddit.com/user/bcRIPste...posed_the_meta https://www.sec.gov/data/foiadocsfailsdatahtm
Not a financial adviser, I eat paint chips for dinner
EDIT: Ok, so I've been reading some comments and I wanted to clear a couple things up:
The failed to deliver number is reported cumulatively. So if you sum everything for the Jan time period it'd come out incorrectly as 5 million. What I'm doing is summing all the debits to get an aggregate view of all the failed to delivers in the time range. This process is validated and discussed in other /r/wsb posts
I know ETF's could have been redeemed by some MM's to gather up GME stock. However I'm not convinced there is enough GME held in ETF's to be a significant factor. Someone in the comments reported this amount to be about ~10M. We would know if a bunch of ETF's rebalanced and dumped GME.
My number for the Ortex short interest was incorrect, I got mixed around when I wrote this initially. The short interest reported by Ortex on Friday morning was ~80%. The 120 figure for S3 was correct.
Please checkout the linked DD - it goes into much more detail and covers things far better than I can.
Share this post and the related DD. We need to hold wall street accountable if this is true and I think that starts by spreading the word.
I'm going to continue to dig into this tonight / tomorrow. Look forward to a new post tomorrow evening.
If I take an L to 0, I take an L to 0. I don't invest what I can't lose. But you can bet your ass I'll be holding till this blows open.
WE LIKE THE STOCK
Yeah as I’m sure you’ve read there are a ton of theories flying around, some sounding very logical and practical and others in full “make America great again” full trump support style.
For every positive take there’s a negative one and for every negative one there are 50 people happily claiming “it’s the man manipulating even more”.
Personally I’m not so sure about that. But there has certainly been plenty of manipulation going on in general but as to whether the traders have / has already managed to find some smart way to cover already on Thursday / Friday perhaps is the ( multi) million dollar question !
My gut feeling tells me they possibly have as this IS what they do ( very well usually) for a very good living and I’d be amazed if they could come up with some work around between themselves to avoid getting shafted and being made look bad by mere amateurs.
As I said yesterday I am more concerned for the people who “sold the farm” to Juno on this and I’m just hoping a lot of them were exaggerating their claims, but I’ve a sneaking suspicion perhaps not though.
Personally more out of stupidity and stubbornness to see things through to the end as I usually do I’ll sit tight ( I think) fir now as i always knew it was a punt from the start and whilst of course no one likes losing money thankfully I didn’t break any of the two rules ( well ok maybe the one Re chasing the loss lol but that ok :-)
So we’ll see, still all very interesting to watch and “who knows” it could still go either way depending who’s right or wrong or blatantly lying. Honestly I don’t claim to know which of the two camps that might apply to more even anymore harder. But we’ll see over the next week or three I guess.
Nirish, it just dropped again by nearly $100 ! Is this actually happening or is it a ploy?
Mark Cuban, giving an AMA on r/wallstreetbets at the moment.
Where are my heart tablets?
My GUESS is as I said above that the shorts DID actually cover last week as they claimed and if so that changes the entire reasoning for holding
don't think they've have covered in the normal manner but using those ETF's that are being talked about perhaps and exchanging them, I assume there's a ton of backroom ways they can play these games long before anyone sees them coming - BUT that IS just a gut feeling guess and both sides have reasons to claim otherwise.
Personally if I had to call it I'd say it's fairly much all done and over now possibly and if it's true as some are claiming they're going out and buying £1000's worth of stock but buying on margin calls then they seriously need their heads look at - no matter WHO is right or wrong as thats basically like using the casinos credit card to gamble with but know that they can call you into the office at ANY ( usually the very worse) time and ask for their money back that you had to borrow in the first place and if you cant cough up they break your legs ! ( or in this case take your house perhaps).
Saying that it seems the younger generation don't seem to give a flying fuck about debt the way us older guys do / did as I know at least three younger friends who all maxed out various credit cards and loans and ended up going full on bankrupt - and not one of them gave a damn about any of it and in fact two of them did it TWICE !
So as I'm sitting watching the counter slowing counting down close to zero dollars per share ( or there abouts) I doubt there'll be any of the huge spikes that people ( I ) was hoping for, thankfully for me it's no real odds and was only money I'd made on other stocks all getting lost and won anyway so it's only really wooden dollars ( in my head) - mind you when I'm next heading to the shops I'll probably look at my account and wonder "hmm where did that ten grand go to again" and quietly kick myself, buy hey al part of the game and part of the fun and why you don't risk what you can't or shouldn't really afford to lose.
BUT saying ALL of that....you just never know - and I'm holding ! ( just in case :-)
Great attitude,honestly.
But , it a'int over 'till the fat lady sings
I understand less about the whole business now than I did a few days ago. lol
Not asking for explanation...relax.lol
You are not in the same situation as many of the redditors. I hate to say it but they looked at this GME thing as a way out, they see themselves as trapped and unlikely to break free...so they took a punt....which is understandable.
You on the other hand have an excellent lifestyle, Thailand,Philippines, Bali, I think you mentioned Spain at some stage,and you still have your job/business. This is just a bump in the road for you.