I've been trying to ignore this story but it's just too strong. I haven't been paying super close attention so anyone who knows more than me: feel free to comment about it below for a big upvote.
The latest move higher comes as some of the high-profile short sellers of GameStop, including Melvin Capital and Citron, announced that they covered most or all of their positions.
What happened?
So apparently Reddit started a crusade against these short sellers at Melvin Capital hedge fund. Rather than let Melvin Capital win, they pumped the Gamestop stock price and squeezed all the shorts. Classic "manipulation".
You guys really gotta watch this video. This is the second or third time I've seen Chamath speak, and truly this guy is an awesome pragmatist. He's a straight shooter that calls everything just like he sees it, such a nice change of pace when getting an interview with elite members of the economy.
The important thing to note here is the shear resistance and disgust that the interviewers always have lurking behind the scenes during these conversations. Watch the video. It's heavily implied that retail investors are just idiots throwing their money where ever... ruining the game for poor old hedge funds... lol!
NASDAQ'S ADENA FRIEDMAN SAYS WE MONITOR SOCIAL MEDIA CHATTER AND WILL HALT STOCK IF WE MATCH CHATTER WITH UNUSUAL ACTIVITY IN STOCKS - CNBC
WOW! Look at that...
So when institutions manipulate markets in a centralized way from the top down this is savvy investing. But when a decentralized community comes together to do it, this is a flagrant offence. I hope we can all see where this is going...
Let this be a prime example for cryptocurrency. Just yesterday I wrote about how these dinosaurs aren't just going to roll over and die after the comet hits. They need to be starved out first, and they are not going to be happy about it, and will thrash about violently in the process.
Consider this a theme as we move into the future. People are starting to realize the game is rigged, and they are coming together to make moves like the big boys. Seriously though, can you believe that? They're going to MONITOR social media "chatter" and halt "unusual" stock activity if they "match chatter with unusual activity"? LOL... WHAT?! What world do we live in right now? That's even worse manipulation than the original manipulation.
Business as usual.
Working as intended.
William Galvin, Massachusetts’ top securities regulator, told Barron’s that the trading in GameStop could be “systemically wrong.”
Conclusion
This story is of huge importance for us crypto people. Even though Reddit is not a crypto and Gamestop is not a crypto, this is a battle between centralization and decentralization, and I know we can all learn a lot from the precedence that gets set from these economic dynamics. Again, 2021 gonna be a crazy year.
https://www.cnbc.com/2021/01/27/gamestop-jumps-another-50percent-even-as-hedge-funds-cover-short-bets-scrutiny-of-rally-intensifies.html
Posted Using LeoFinance Beta
Return from Reddit 'Manipulated' Gamestop Stock. to edicted's Web3 Blog
