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peruvian_bull
Posted - May 11, 2023 at 9:11 PM
Saved - June 4, 2024 at 5:42 AM
reSee.it AI Summary
The central banks are trapped in a black hole of their own design, facing a choice between saving their currencies or the system itself. The Federal Reserve has trapped the Treasury beyond the event horizon, and the financial gravity is becoming overwhelmingly strong. The United States' hegemonic influence of the Dollar has made it a superpower, but this could also become an existential risk. The US has weaponized the Dollar, but this power cannot last forever. The banking system is breaking, with an accelerating withdrawal of money throughout the system. Sanctions against Russia and the actions of the Bank of Japan are causing concerns. The US is edging towards default, and the drums of economic war are beating. The Treasury's debt issuance is going parabolic, and Kuroda's strategy in Japan is failing. Argentina is facing exponential inflation, and China is teetering on the brink. The Fed may be repeating the mistakes of the Bank of Amsterdam, and there is a movement to direct register the float of an entire company. The financial system is complex, and the SEC's incompetence is staggering. There are discussions on various topics such as Ayahuasca, the singularity in the monetary system, and the illusion of the financial system. The posts also touch on the recent events surrounding GameStop, the Chinese shadow banks, and the commercial property market. The Bank of Japan is stuck beyond the event horizon, and arguments for infinite liquidity are criticized. Gold's recent rally may signal the end of Western manipulation, and the quality of economic data is questioned. The Japanese Yen crisis and the potential currency crisis in Japan are also discussed.

@peruvian_bull - Peruvian Bull

Peruvian Bull Meta Thread: A compilation of all my best work. The central banks are trapped in a black hole of their own design. They will soon be forced to choose which to save- their currencies or the system itself. The Dollar Endgame Thesis. 🧵🔥👇 https://www.youtube.com/watch?v=f0yIATTy0J8

@peruvian_bull - Peruvian Bull

The Federal Reserve has trapped the Treasury beyond the event horizon. The Financial Gravity is now overwhelmingly strong 👇

@peruvian_bull - Peruvian Bull

Financial Gravity and the Fed's Dilemma: The Fed is trapped in a black hole of it's own design. There is no way out; only hard choices lie ahead. A Thread 👇👇👇

@peruvian_bull - Peruvian Bull

The United States has become a superpower due to hegemonic influence of the Dollar. However, this can become an existential risk. 👇

@peruvian_bull - Peruvian Bull

The Dollar as a World Reserve Currency has allowed the US to subjugate the entire world and become an Empire. However- our greatest weapon could turn into an existential risk. A Thread 🧵👇

@peruvian_bull - Peruvian Bull

The US has weaponized the Dollar to be a secret Excalibur. To punish enemies far and wide. However, this power cannot last forever... 👇

@peruvian_bull - Peruvian Bull

The Dollar is the world reserve currency. This grants immense geopolitical and economic hegemony to the United States. But, Treasury wants to keep their Excalibur a secret. A Thread: 🧵👇

@peruvian_bull - Peruvian Bull

The Federal Reserve has stolen the American Dream. Only the wealthy have benefited. 👇

@peruvian_bull - Peruvian Bull

The Federal Reserve is responsible for far more of the evils in this world than you can possibly imagine. A thread: 🧵👇

@peruvian_bull - Peruvian Bull

The banking system is breaking. 👇

@peruvian_bull - Peruvian Bull

The Fed’s O/N Reverse Repo figure has been sitting at a record $2.2 Trillion, shattering all previous records. Time to follow a thread 🧵👇...

@peruvian_bull - Peruvian Bull

There's an accelerating withdrawal of money throughout the banking system. The Fed has created a Singularity which is ripping apart the banks. 👇

@peruvian_bull - Peruvian Bull

A new financial crisis is brewing. There is an accelerating withdrawal of money throughout the entire system. The Dying Banks and the Singularity. A Thread 🧵👇

@peruvian_bull - Peruvian Bull

The sanctions against Russia have wounded them. But could this be a bridge to far for the World Reserve Currency? 👇

@peruvian_bull - Peruvian Bull

A lot has changed in just under a week. The timeline has accelerated. Let me explain 👇

@peruvian_bull - Peruvian Bull

The Japanese have wandered far into the oceanic depths. Have they finally encountered a monster even the mighty BoJ cannot defeat? 👇

@peruvian_bull - Peruvian Bull

Japanese Yen surged this morning as the BOJ undertook a surprising change in policy and raised the cap on the 10yr bond to 0.50% They are battling a Godzilla. Can they win? A short thread 👇

@peruvian_bull - Peruvian Bull

Dissection of SVB's financials just prior to collapse. What if they're not an anomaly?👇

@peruvian_bull - Peruvian Bull

Most people don't realize how crucial Silicon Valley Bank is. Billions of dollars in venture debt. Untold amounts of warrants and convertible notes in early-stage firms. If SVB fails, this could be the Lehman moment for the startup world.

@peruvian_bull - Peruvian Bull

Republicans and Democrats are edging default. If the US actually failed to pay its Treasury bonds, the results would be disastrous 👇

@peruvian_bull - Peruvian Bull

1/ The United States is one of the largest economies in the world and holds $31T of federal debt. However, if the country were to default on its obligations, the consequences would be far-reaching and severe. Time for a thread. 🧵👇

@peruvian_bull - Peruvian Bull

The drums of economic war have begun to beat. The cracks are widening in the dollar based global monetary system ... 👇

@peruvian_bull - Peruvian Bull

The Battle has begun for the future of the global monetary system. The fate of superpowers hangs in the balance. Bretton Woods III: Economic Warfare 🧵🔥👇

@peruvian_bull - Peruvian Bull

The Treasury is accelerating beyond the Event Horizon. The debt issuance is going parabolic. 👇

@peruvian_bull - Peruvian Bull

The United States is entering an exponential debt spiral. Welcome to the Monetary Event Horizon. A Thread ⚡️🧵👇

@peruvian_bull - Peruvian Bull

Kuroda's strategy of Yield Curve Control is beginning to fail...👇

@peruvian_bull - Peruvian Bull

The Japanese are desperately trying to hold the line against the odds on their plan of Yield Curve Control. The Bank of Japan is TRAPPED. A THREAD👇🧵🔥

@peruvian_bull - Peruvian Bull

Argentina is falling apart. Exponential inflation is here 👇

@peruvian_bull - Peruvian Bull

Argentina Enters the Endgame- Is the beleaguered South American nation in the early stages of hyperinflation? A THREAD 👇🧵🔥

@peruvian_bull - Peruvian Bull

The Chinese are teetering 👇

@peruvian_bull - Peruvian Bull

Warning signals are flashing red in the world’s largest real estate market. Is China on the brink of another 2008? a thread 🧵🔥👇

@peruvian_bull - Peruvian Bull

Could the Fed be repeating the same mistakes as the Bank of Amsterdam before the collapse of the Guilder? 👇

@peruvian_bull - Peruvian Bull

The Bank of Amsterdam's collapse signaled the end of the Guilder as a reserve currency. Could history be repeating itself? How the first Central Bank Died- A Thread. 🧵🔥👇

@peruvian_bull - Peruvian Bull

Not finance related, but Ayahuasca is a powerful medicine for transformation 👇

@peruvian_bull - Peruvian Bull

My Ayahuasca experience: Opening the Door to the Heart of Darkness. A thread about encountering the Jungian Shadow 👇

@peruvian_bull - Peruvian Bull

Deep in the monetary black hole, hides the Singularity. It could change everything 👇

@peruvian_bull - Peruvian Bull

THE SINGULARITY: There exists a hidden flaw in the monetary system, deep into the Black Hole... that could spell disaster for fiat currencies. A THREAD 👇⚡️ https://substackfwd.xyz/?url=https://dollarendgame.substack.com/p/the-singularity

The Singularity There exists a hidden flaw in the monetary system, deep into the Black Hole... that could spell disaster for the Dollar. substackfwd.xyz

@peruvian_bull - Peruvian Bull

The Fed has created a Financial Illusion greater than any other. What is left of Economic Reality? 👇 https://t.co/aH5g1QDL2Z

@peruvian_bull - Peruvian Bull

The Simulacrum: what if our financial markets are an illusion- and the abstraction has overtaken reality? The Fed has broken the Financial Matrix. A THREAD 🧵🔥👇 https://t.co/nSVDmtEHra

@peruvian_bull - Peruvian Bull

The financial system is not some monolith upon which all transactions are made. It's far more complex (and interesting) 👇⚡️ https://t.co/39rFFnHmIW

@peruvian_bull - Peruvian Bull

Layered Money The financial system doesn't work how you think it does. A THREAD 🧵👇⚡️

@peruvian_bull - Peruvian Bull

The SEC's incompetence is staggering. Are they complicit in the financial crimes of the people they regulate? 👇 https://t.co/ds7xMKoa0l

@peruvian_bull - Peruvian Bull

The SEC is a criminal organization. The true story of their epic failure to prosecute the largest fraud of all time: Bernie Madoff. A Thread 🧵⚡️👇

@peruvian_bull - Peruvian Bull

There is a movement to direct register the float of an entire company. Barely anyone in the financial world knows about this 👇 https://t.co/m3yOY5OMz0

@peruvian_bull - Peruvian Bull

PowerPoint on Gamestop and DRS- A THREAD 👇🧵⚡️ (1/31) https://t.co/s7dViDTEXw

@peruvian_bull - Peruvian Bull

Did the Saudis make a secret deal selling oil for gold? ANOTHER revealed this controversial theory in 1997-could it still be in place?

@peruvian_bull - Peruvian Bull

ANOTHER: The controversial anon blogger in 1997 who revealed an astounding gold-for-oil deal hidden in the markets that shaped geopolitics for the last few decades. A THREAD 🧵⚡️👇

@peruvian_bull - Peruvian Bull

$GME almost broke the financial system, until they panicked and turned off the buy button. Dive in 👇🤯 https://t.co/9WKlENasN5

@peruvian_bull - Peruvian Bull

3 YEARS AGO TODAY, JAN 28th 2021: Price was going parabolic, and then Robinhood turned off the BUY BUTTON on $GME. What was revealed would shock the financial world- and the story still isn't over! A THREAD 🧵🔥👇 https://t.co/47rH6RoFVV

@peruvian_bull - Peruvian Bull

China's deflationary crisis has been spreading to equities, and authorities will utilize the inevitable liquidity injections to save the day. Are things going from bad to worse for the Asian behemoth? 👇⚡️ https://t.co/K5BV3vXg3K

@peruvian_bull - Peruvian Bull

Crisis in Shanghai: Stock markets are getting hit hard in China, indicative of a vicious deleveraging cycle. CPI print was NEGATIVE again in December. What will they do to stem the bleeding? A THREAD 🧵👇⚡️ https://t.co/CwI10QJXgA

@peruvian_bull - Peruvian Bull

Was $GME on the way to being cellar-boxed by malicious market makers before January 2021? Their playbook for bankrupting companies 👇 https://t.co/y3ug9i83kE

@peruvian_bull - Peruvian Bull

CELLAR BOXING: A post made in March 2004 laying out the entire naked shorting scam- how Market Makers profit from destroying companies. This is how they steal your wealth! $GME $AMC $MMTLP A THREAD 🧵🔥👇

@peruvian_bull - Peruvian Bull

The Chinese shadow banks are falling like dominoes. Are their real estate woes big enough to bring China down? 👇 https://t.co/0A4ToXZURK

@peruvian_bull - Peruvian Bull

China Crumbles: Xi's economic miracle is running into serious problems. Now the property market contagion is spreading to the shadow banking sector, and authorities are panicking on what to do. A THREAD: 🧵👇🔥 https://t.co/wNT8lKPnVC

@peruvian_bull - Peruvian Bull

Regional banks are heavily exposed to the commercial property market. Is the downturn just beginning? 👇 https://t.co/bwU10M7CHd

@peruvian_bull - Peruvian Bull

Shades of 2008? Warning signs are brewing in the commercial property market, and contagion is already beginning to spread to Europe. Are we seeing the CRE version of the Financial Crisis? A THREAD 🧵🔥👇

@peruvian_bull - Peruvian Bull

The Bank of Japan is stuck beyond the Event Horizon. The recent rate hike only confirms it 👇 https://t.co/3pjudSCKJV

@peruvian_bull - Peruvian Bull

The BoJ is Trapped: The Bank of Japan just raised rates for the first time since 2007. Is Ueda sleepwalking into a currency crisis? A THREAD 🧵👇⚡️

@peruvian_bull - Peruvian Bull

The arguments for infinite liquidity are nonsensical. Don't believe the dogma that unlimited naked shorting and excessive derivatives are positive outcomes for markets 👇 https://t.co/0u9KqOnEME

@peruvian_bull - Peruvian Bull

some tradfi bros like @ConwayYen disagree with a lot of what I say. since they are intelligent, their points are worth considering. but they are WRONG! Time for a thread on $GME, DRS, and the morality of markets. 🧵⚡️👇 https://t.co/LyuXTG4wO3

@peruvian_bull - Peruvian Bull

Gold's recent rip could be a sign that decades of Western manipulation of bullion is finally coming to an end. But is this rally an omen of something far worse happening in global macro? ⚡️👇 https://t.co/p9JY4DnAKt

@peruvian_bull - Peruvian Bull

The Gold Endgame Begins: Gold is ripping to new all-time highs, and China could be behind the move. Is the Western gold market manipulation finally reaching its finale? A THREAD 🧵👇🔥 https://t.co/MpZ6a9ZysN

@peruvian_bull - Peruvian Bull

Unemployment, Payrolls, and CPI all have problems. And the quality of the data seems to be getting worse 👇 https://t.co/DZthbyrl2E

@peruvian_bull - Peruvian Bull

The Potemkin Economy: More and more news reports come out concerning the booming economy- but underneath the surface, things are not as they seem. Can we even trust the veracity of the data anymore? A THREAD 👇⚡️🧵

@peruvian_bull - Peruvian Bull

A stellar Twitter Spaces on the Japanese Yen Crisis with informative rants from @acrossthespread and @DarioCpx Probably the best spaces we've ever done 👇👇 https://t.co/3wXhHNEcGv

@peruvian_bull - Peruvian Bull

https://t.co/j0JXD9pt0P

@peruvian_bull - Peruvian Bull

@acrossthespread @DarioCpx Japan is currently trying to ride both sides of the impossible trilemma, and their currency is blowing out. Another step in the Dollar Endgame 👇👇👇

@peruvian_bull - Peruvian Bull

Tokyo Drifting Into A Currency Crisis The Bank of Japan intervened twice last week as JPY crossed the redline set in September 2022. What lies in store for the Japanese Yen? A THREAD 🧵👇🔥 https://t.co/qbNkGaqM0W

BossBlunts1
Posted - September 28, 2023 at 2:29 AM
Saved - September 29, 2023 at 1:36 AM
reSee.it AI Summary
A hedge fund manager reveals AMC and Gamestop secrets to Citadel employees. Melvin Capital CEO complains about retail investors. Robinhood CEO's behavior draws criticism. IBKR CEO advises retail investors on squeezing shorts. Janet Yellen warns about overleveraging by hedge funds. Another hedge fund manager predicts a massive wealth transfer with AMC and GME. TLDR: WGBSFR.

@BossBlunts1 - The Butcher of Wall Street Marcel Kalinovic

Hedge Fund manager spills the beans on AMC & Gamestop in front of 2 citadel employees. Melvin Capital CEO cries that retail investors were mean. Robinhood CEO acts like a lying little bitch from Bulgaria. IBKR CEO tells retail how to squeeze shorts via calls. Janet Yellen testifies HF & shadow banks overleveraging are the greatest risk to global financial stability... HF Manager explains that AMC & GME will be the greatest transfer of wealth of all time. TLDR: "WGBSFR"

Video Transcript AI Summary
The video provides a comprehensive analysis of the GameStop and AMC stock frenzy, covering various perspectives and key events. It explores the risks and system failures caused by high volumes of short positions and call options, with speakers advocating for daily reporting of short positions and increased margin requirements. Janet Yellen and Jerome Powell highlight the risks posed by overleveraged hedge funds and shadow banks. The controversy surrounding Robinhood's decision to restrict trading during the frenzy is discussed, with the CEO defending the decision based on financial requirements and market volatility. The tension between retail investors and institutional players in the stock market is emphasized, along with the role of short sellers and the need for improved settlement processes. The potential conflict of interest between prime brokers, hedge funds, and banks is examined, with a call for real-time settlements and a level playing field. The video also touches on wealth redistribution, taxing capital gains, the importance of free markets for GDP growth, and the dangers of socialism. The ongoing nature of the situation and the mention of insider information are also highlighted.
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Full Transcript
Speaker 0: And we're so goddamn rich. Speaker 1: Okay. Fucking Speaker 0: rich. Speaker 2: You Speaker 1: fucking Listen, I Speaker 2: want my fucking money. Speaker 3: You're an original. Right? Speaker 2: Yo. How the fuck? Leave the fucking Speaker 1: Great. Speaker 0: What's going on, fellow retail investors? Butcher Wall Street here. Let's take a look at a few things right now. We're gonna take a step by step walk through from broker dealers, hedge fund managers, And even the United States Treasury, Secretary Janet Yellen, as well as What other broker dealers have to say? I think you guys are gonna be Surprised if you haven't seen this before and convicted if you have, but I've got about 7 videos lined up for you. We've probably got about an hour here. So Grab your bucket AMC popcorn. Check this shit out. Speaker 4: Let's just start with a simple question. How close we were to this system breaking, something failing? How close were we, Thomas? Speaker 5: We were frighteningly close on January 28th, when we had 60,000,000 registered shares at the same time we had 70,000,000 shares short and 150,000,000 150,000,000 shares short, via short call options. So if the call options had been exercised, The shorts would have had to deliver 270,000,000 shares, while only 50,000,000 shares existed. So as the rules are today, the loan broker has to if he can't get the shares, he has to go into the market And buy the shares at whatever the price is. So that could have pushed the price further up into the 1,000. When that happens, obviously, the shorts cannot pay off. So the brokers, They default on the brokers, the brokers default on the clearinghouse and the whole thing is a huge mess that's impossible to untangle. So there is a simple solution for this the way I see. Number 1, we would have to get the short positions published once a day because we currently have it only twice a month. And second, we would, the SEC would have to require brokers to charge an additional 1% of margin, for every, 1% of short interest. And that would Now Speaker 0: let me run that back for you in case you're unaware. This is the chief executive officer of Interactive Brokerage. That's IBKR for short. In this, he is specifically telling, the news and retail investors in this interview that investors in AMC and GameStop, Because even though as you can see, this was, amidst the GameStop turmoil, it was both AMC GameStop as well as Koss, KOSS that had the buy button pulled as well as a handful of other, stocks on January 28, 2021. This congressional hearing was the one in which, the one in which, you know, Keith Gill and other people were all Basically interviewed in front of congress over a period of days. So, We exercised for Notice what it says about the numbers sharing real. Speaker 4: Something's failing. How close were we, Thomas? Speaker 5: We were frighteningly Close on, on, January 28th, when, we had 50,000,000 registered shares at the same time. Speaker 0: 50,000,000 registered shares by the brokerage by all brokers. Speaker 5: We had, 70,000,000 shares short. Speaker 0: There are short positions of over 70,000,000 shares. That's obviously 20,000,000 more than they even had available. Speaker 5: And, 150,000,000, 150,000,000 shares short, via Speaker 0: Short call options are call contracts that retail investors held. If retail investors have exercised There are 150,000,000 shares worth of short call options that would have made it impossible for the broker dealers and the shorts to get out of their positions whatsoever. Even without a buy button, retail investors are still able to exercise Call contracts. Speaker 5: So if the call options have, been exercised, the insurance would have had to deliver two hundred 70,000,000 shares, while only 50,000,000 shares existed. So as the rules are today, the loan broker As to, if he can get the shares, he has to go into the market and buy the shares at whatever the price Speaker 0: is. Notice he's only talking about GameStop because that's what this question was about. That doesn't include all of the shares that were unavailable and the number of shares that were also outstanding in AMC And all of the call contracts that were now in the money when AMC went from $2 a share in the beginning of January to, $18 a share Or so on January 28th. Speaker 5: So that could have pushed the price further up into the 1,000. When that happens, obviously, the shorts cannot pay off. So the brokers, they default on the brokers. The brokers the Solution for this, the way I see, number 1, we will have to get the the short positions Publish once a day because we currently have it only twice a month. And second, we would, The SEC would have to require brokers to charge an additional 1% of margin, for every, 1% of short interest. And that would then raise the margins progressively so high that people will stop shorting Speaker 4: So margin requirements would have to increase as short interest increases. That seems a bit of view from you, Thomas. I'm just wondering from your perspective, overseeing a broker, is there anything you can do to protect your clients before the SEC or the regulator has to tell you to do it? Speaker 5: Of course, we can. That's exactly what We increased our margins. So Speaker 4: So why does the regulator need to make that decision on your behalf, Thomas? So I'm just speaking out loud with you, thinking out loud, trying to Work through this process when you're wanting to get the regulators to make that step. Speaker 5: Right. So first of all, I do not know the short interest daily, and that that would be important for me to be able to know how much to increase the the margins by. So the regulators could require that the short interest be reported Daily, that's very simple. Secondly, the regulators tell us the minimum margin we must charge. And we are free to charge more, and that's exactly what we did. But, some brokers may not Be able, may not know how to deal with this. And that's why I think it would be good if the SEC required or broke. Speaker 0: Thomas Peterffy here is saying that there's a a major problem with the financial system. The fact that shorts only have to report their positions twice a month Basically every 15 days or so allows them for massive amounts of manipulation in, they're hiding their positions and rolling their positions and moving them around with swaps and contracts and futures and married puts and calls and all sorts of other things, including marking shorts as long and marking, shorts as short exempt when it's not actually exempt, etcetera. Speaker 5: All goes to ties for our insurance. Thomas, another issue that came up as well was Speaker 4: the conflict of interest issue as well. And I know for you that you have a different model. You're not reliant on payment for order flow in the same way the brokers are. But, Thomas, can you speak to that? The Explosion of commission free trading that we've seen over the last several years and in some parts dependent on the payment for order flow. Can we have one without the other? Speaker 5: Can we have the explosion of interest in trading without payment for order Speaker 4: Can we have the closing in commission free trading or at least the democratization of markets that we have seen over the last several years without the payment fraud afloat factor in all of this. Speaker 5: But, but look, I mean, the commission between 0 and, for example, we charge less than like $1.95 on the average trade. That's that that that difference is almost negligible. Right? So, I don't every trade is is probably about, you know, 40, $50,000. So whether you pay there or you pay $2, That's not frustrating, sir, at this time. Speaker 4: So do you think the conflict of interest is not an issue? Speaker 0: Of course, no. I don't think so. Speaker 4: Thomas, what would you like to see asked today? And who would you like to see those questions aimed at? Speaker 5: I would like. Speaker 0: Robinhood has been fined 45 $35,000,000 for using payment for order flow. They were actually fined $65,000,000. Back in December of 2020, Robinhood had agreed to pay a $65,000,000 fine to settle charges by the SEC that they were misleading customers. They failed to inform customers about payments that are received from trading firms to route customers' orders through them, a move that resulted in customers paying higher prices to execute trades. As a matter of fact, it cost customers $34,100,000 more than if it would have, if they were just paying a few bucks a trade because they claimed that they were not paying commission at all. But as you all know, Nothing in life is free. Again, that's why we're coming out with LitExchange. Go to litexchange.com, if you want more info. Speaker 5: Hi, Bill. I basically would like to ask the SEC Why they didn't act on on on, the morning of of of January 28th because, I I was so scared. I can't tell you how scared I was. Speaker 0: Here's a billionaire telling you, he's so scared, he can't even explain in words how scared he was as to the possibility of losing every dime he's earned and he's worked for, for his entire life because of how over leveraged these short hedge funds are and how deep underwater these broker dealers and clearing houses And prime brokerages were and are. What occurred back in January of 2021 was just A small insight into what is still happening today with heavily shorted meme stocks such as AMC and GameStop. Speaker 6: What were you Speaker 7: scared about? Just, what does Speaker 4: the failure look like? You said we can't close the breaking. What were you scared of? What do you think was going to happen? Speaker 5: I was scared of a domino bankruptcy. I tell you, the rules require the long brokers to go into the market and buy the shares of whatever price. Any price. So that drove the shares up to $480, and then suddenly, it I I guess, Speaker 0: He was going to say, and then suddenly they pulled the buy button, but he didn't because he knows that that would implicate his firm, IBKR because they also pulled the buy button from retail. Speaker 5: So that drove this guys up to $4.80 and then suddenly, I I guess, they they it didn't go further, but it could have gone further. So if the shorts had known I mean, the longs had known that they have the right to ask for the Longs are retail. Yeah. And and and they really wanted a short squeeze, that's what they would have done. You're not tested. Speaker 0: Because retail exactly What they should have done if they really wanted a short squeeze. Listen to what he's saying right here. Again, I'm going to play this one last time. It's 30 seconds that you need to understand. Speaker 5: They're long bounces. I mean, I was scared of a domino bankruptcy. I tell you, the rules require the loan brokers to go into the market and buy the shares at whatever price. So that drove the shares up to $4.80 and then suddenly, I I guess, they they it didn't go further, but it couldn't come further. So if the insurers had known, I mean, if the loans had known that they have the right to ask for their shares. Yeah. Speaker 0: I exercise in car contracts. Speaker 5: And they really wanted a short squeeze, that's what they would have done. Speaker 4: You're not testifying today. Have you spoken to the House Financial Services Committee? Speaker 0: You heard it here directly from the CEO of IBKR. If retail really wanted the short squeeze, they would have exercised their call contracts. Think about that. Now let's move on from IBKR Chief Executive Officer to Thomas Peter Phee Over to Janet Yellen. Thomas Peterffy was telling us that the system is broken, the markets are broken, the short hedge funds and the broker dealers are overwhelmed, the prime brokerages, the clearing houses and they could not deliver the number of shares required for AMC and GameStop, Right. GameStop went up from $60 a share to $4.80 a share. AMC went up from $2 a share to $18 a share and so on. Here is Janet Yellen testifying in front of Congress, on September 28, 2021 During the CARES Act testimony along with Jerome Powell telling us exactly what is going on with shadow banks and hedge funds. Speaker 8: COVID nineteen pandemic, of course, the most significant shock to the U. S. And global economy Speaker 3: in the last 2 years. Speaker 8: Beyond COVID, what do you assess are the most significant systemic risks or threats Financial stability in the U. S. And globally? When I think about systemic risks to the financial system, I always think about cyber risks Really more than anything else, we have a very highly capitalized banking system, one that is much better at measuring its risks so that more traditional Making bad loans, losing money and things like that, that'll happen, but the banks are really well fortified against that. The risk that we haven't really face the full brunt of yet is is a successful cyber attack on a financial institution of some kind, be it a financial market utility or a bank or another financial institution. And, you know, we we work closely with treasury and other agencies all around the country on that. You you never have the feeling you're Doing enough, but we it's a very high priority priority to be ready for. But that that that will be the number one thing. Madam secretary, the same question for you, please. Other than the ongoing COVID nineteen pandemic and the terrible economic toll that it's taking and the terrible health toll that it's taking. Looking more broadly, what do you assess to be the most significant systemic risks or threats to financial stability? Speaker 9: I think I think there are threats to Financial stability that have come from the growth of activity in the shadow banking sector. We saw some of those spreads, emerge during the onset of the pandemic. We, have, for example, open end, bond funds that guarantee daily redemption, So massive withdrawals, by individuals who wanted to flee to cash and That can trigger fire sales of assets with systemic consequence. Speaker 0: Here she's talking about money market funds, people leaving money market funds and institutions as well as well as the RRP. Overnight redemption. Alright. Janet Yellen is telling us that financial runs were occurring because people were withdrawing their liquidity out of the system. And here comes the best part. I'm just going to back it up so you can hear that real quick and understand it. City in the shadow banking sector, Speaker 9: We saw some of those threats, emerge during the onset of the pandemic. We, have, for example, open end, bond funds that guarantee Daily redemption, saw massive withdrawals, by individuals who wanted to flee to cash and That can trigger fire sales of assets with systemic consequences. The Financial The Layoversight Council that I had is taken that up as a topic that we're looking at and examining. There were issues relating to hedge funds, and the possibility of leverage there They can trigger, financial runs. That's another topic. And More broadly, climate change over time is, I believe, could be a significant risk to the financial sector and the economy. Speaker 0: When Janet Young says climate change, she's not actually talking about the weather. She's talking about the financial climate. There are issues relating to hedge funds and leverage there. Speaker 9: Hedge funds, and the possibility of Leverage there that can trigger, financial runs. That's another topic and Speaker 0: So we got Thomas Peterffy, the chief executive officer of IBKR, telling us that he was scared of domino bankruptcies And he can't explain how scared he was on that date because there were so many more shares and options call contracts that were required to be covered and closed and paid out and exercised for retail investors, have the broker dealers not pulled the buy button. And then you've got Janet Yellen just a few months later explaining to people how shadow banks such as the mutual money market funds, excuse me, and over leveraged hedge funds are the greatest risk to financial stability in the world. Now, let's take a look at what happened, Charles Grandante. Charles Grandante is a hedge fund manager since 1986, basically, and he explains in front of these 2 assholes that worked for worked or work for Citadel Securities. They both are working for Citadel Securities and he's working for another hedge fund. This was at a Corp. Gov. Event panel, and he lays out exactly what was going on with GameStop and AMC. Check it out. His microphone is a little shoddy for the first, like, 3 minutes and then it clears up really well from there. So Bear with the audio. Keep up with the kilo's captions for, like, 3 minutes, and then it'll kick in and you'll be able to hear the rest of the 7 minutes very But it's just a little echoey. It's not on my end. It's his audio at this event, but it's worth listening to. Trust me. He just said the first thing he says, it's not reported in the media. That's for sure. Surprise, surprise, Speaker 3: The media will let you believe that there's a, that we regulate these stocks, we need to regulate Retail traders, but in fact, there's a there's a another side of Speaker 10: the story which points in a different direction. I think we've all been suspicious when we've seen high volume, cold volume followed by the stock Rising within a week or so, maybe days sometimes. Couldn't even amount flip. Speaker 0: Look, he said There's a correlation between high volume call binding. He didn't say coal. He said call, like as in call contracts, and that how that equals High stock price changes. Speaker 3: Coal mining. Suspicious and what Speaker 10: we've seen, high volume coal mining followed by the stock rising within a week or so, maybe today sometimes. Could be even a month, but We we associate the the rise of the stock with the excessive coal buying and sort of a conclusion that is is very suspicious. The excessive coal volume leads to, the underlying stock increasing. That is true in part, but there are other things going on. When 1 party As long the call, we have an asset. If there's a counterparty that is shorter call, we have a liability. The market makers typically marry people that are doing covered calls with traders that are going long a call. Speaker 3: So you have 1 somebody doing long a call. The Speaker 0: Here we have Charles Brudante, Hedge Fund Manager explaining the, intricacies of married calls and puts, okay, divorced calls and puts. And he's explaining how, sometimes these market makers can avoid having to hedge by buying more shares or calls by marrying these positions. Speaker 3: And makes a market. If you have high volume coal burning, which is not illegal, The market maker takes the position himself. And as I'm reading the media, I cannot hear much about market makers doing this. I knew they pointed to Citadel, but it only explained what goes on. The the the excessive coal mining forces Citadel or any other market maker to take Forces, Citadel or any of the market makers to take care of the sound positions. So now you have the retail traders And GameStop long the call and you have Citadel or some other market maker short the call. The market maker has An option to do nothing or hedge. Typically, market makers don't like to take overnight positions and most of these calls were for at least one day or more. So they will hedge that position. And the hedge of being short a call is to buy the underlying stock. That is what moves the stock. So in as much as we can marry long call buyers with covered call sellers, nothing happens to the underlying stock. Other than information flow about the stock causing the stock to go up for fundamental reasons or technical reasons, momentum, moving day hours, whatever. But insofar as the volume on the long side exceeds the natural offsetting volume on the short side, the selling side, the market maker sits in, must hedge their position and that creates The balloon up. Now I watched CNBC. I watched Bloomberg. I read all this stuff. And I don't has anybody heard that explanation? Great. But, I'm very disappointed in this. And it's not uncommon That even the regulators are just starting to I think they understand this than me, the ones in senior positions, But they don't know how to handle it. Now there are other things and I'll give it back to you because, but there are other things that need to be discussed in the situation because the the market maker what is Speaker 0: the concern on his face? This Citadel employee is extremely concerned as to what Charles Berlante is about to say. Speaker 3: In an effort to support now the short seller, Melvin Capital, they will typically borrow the stock as I think everybody here knows that. They borrow the stock, give it to the Short seller, they actually sell it, never goes to the short seller. Everything stays on the books of the market maker. They sell the stock. They put the cash on their books, memo credit to Melvin Capital, and that's collateral against the short. And that's the typical short selling. But that's not what happened with GameStop. It did in the beginning. But when the shorting got out of hand On the hedge fund side of the fence, the market makers created synthetic shorts. And that's a whole other issue, and we can talk about that. But the synthetic shorting and naked shorting, which is illegal, You can a market maker can do can execute naked shorts insofar as they're facilitating a trade. They're not to facilitate someone shorting a position for an extended period of time. So the regulators are looking at that now as to whether or not there was this naked shorting by the market makers on behalf of the hedge funds In order to facilitate the shorts and I think they're going to uncover that there were some issues there, which gives Speaker 0: I believe he's right seeing as how, what was this? September 22, 2023, just about 3 days ago, we saw that the Securities Exchange Commission has charged Citadel securities for marking shorts as long, for marking shorts as short exempt, and for marking longs as short. So there this has happened over a period of over of 5 years, and they marked millions, if not Hundreds of millions of trades like this, illegally. This is indicative of abusive short selling and naked short selling activity. And this regulatory framework for Red Show, was it being violated by Sezzle Securities. That's why they settled the charges for $7,000,000, which is just fractions of a penny per, dollar that they made in profit. And these records, as you could tell, are used by regulators in policing prohibited short selling activity. This is literally the whole point, and that's exactly what Charles Grandante is saying here. Compliance with the order marking requirements of Red Show is a key component of regulatory efforts to curtail abusive marketing practices, including naked short selling, Said, the director of SEC, Division of Enforcement. Speaker 3: Let me to a final point and I'll give it back to you. The penalty for naked shorting Is really not significant enough to stop it. Speaker 0: You're right. As I just told you guys, we just saw that Citadel Securities LLC paid only $7,000,000 for mismarking millions and millions of trades. And on that same date, gain sorry. Excuse me. Goldman Sachs was fined, $6,000,000 for marking a 153,000,000 trades, incorrectly. They did the same thing. They're short selling, naked short selling, And literally only having to pay a few $1,000,000 for marking 100 of millions of trades incorrectly and naked short Speaker 3: Citadel and Goldman and all of the players get Speaker 0: he literally just named these. This was in 2021 when this came out. So November 1, 2021, he just named the 2 players Right there that we just saw 3 days ago, September 23rd of 2023 were fined 1,000,000 of dollars, only 7,000,000 and 6,000,000 each respectively for mismarking these trades and for naked shorting. This is not a conspiracy. This is not Up for debate. These are facts, and that's why the Securities Exchange Commission allowed Citadel and Goldman Sachs to settle for merely pennies on the dollar because they understand that they're going to continue to do it And they're just gonna keep getting these minuscule charges against them. That's why I don't really worry when I see people that are being paid to talk poorly about AMC or GameStop Because none of that matters to me. I know what my due diligence has led me to, and it's led us Directly to where we are now after having seen on multiple occasions now that AMC and GameStop can blow up at any moment. And it is one of the greatest risks to market makers, clearing houses, brokerages, banks And everybody in between, short hedge funds and family offices that possibly exist because they've had to create so many synthetic shares and so many naked shorts to maintain their positions from becoming absolvent that there's no way that they can just close out all of a sudden and move on. There's not, there's an insufficient number of shares. Speaker 3: Fine constantly for, doing this as long as it's not intentional and never is intentional, they get fine. And I think one of the things that we need to do is discuss Increasing the fines for this lapse of memory and inefficiency in the system to the point where people wake up and pay attention. Right now, the, you know, the fines are insignificant. So I have more to say on that, but there's just the taste of where I'm going. Well, it's it's gotta be technology. I mean, we were very paper intensive. In, my early days, you had trade date plus flat five to settle. Speaker 0: And it was paper. And when Speaker 3: we had the crash in 87, It took 2 weeks to settle trades that happened on the day, the Friday and the Monday after the crash. So that's, that's the main thing. I think technology is the answer to any question like what's, what's the difference between now and before we would Speaker 8: Right. Right. So, so everything has, It greatly increased in speed. Speaker 3: Yeah. Yeah. But I think getting back to my points and Retail now is a big player, on the street and GameStop, shows How important it is to address that sector? Well, Charles, is that because trades are again, Speaker 0: Soon as those securities had to collateral had to collateralize 55.5 billion out of their entire $63,000,000,000 worth of assets to counterparties in order to secure debt and loans. These can be seized or pledged at any time if they do not meet their margin requirements. Looks like you can't see all that there. Let me move it to a smaller window for you. There you go. This is in, millions. So it's 57,000,000,000,526,000,000 In supposed securities owned at fair value, securities owned approximately 55 1,000,000,000 have been pledged as collateral to counterparties on contract terms which permit the counterparties to sell or re pledge these securities to others. That means securities owned and securities sold, not yet purchased. So these securities owned and sold, not yet purchased are recorded at fair value. That includes this number here. That's how they've been able to come up with it up with it. And those can then be rehypothecated or sold even though they don't own them. And then the other parties can also do the same. And again, as you can see, these are pledged assets. And should the borrower's default, the lender has legal recourse to take ownership of whatever assets are left over and pledged. Speaker 11: For 3 now? I mean, back in 'eighty seven, it would have cost $50 to call your broker a trade. Right? Is that why you need to Well, Speaker 3: their trading was more expensive. The bid offer spreads were wider. And most of the, velocity trading was done by institutions that that had a moral compass. They are not not that the I as a matter of fact, I'm in favor of what, what the Reddit boys did and girls. Who these guys faced? They were right in what they did, So I'm not knocking them. And this Speaker 11: is coming from a hedge Speaker 0: fund manager. So that's But Speaker 3: but an institution would never push the system that far Because the regulators would come down on them and saying in other words, the question you have to ask yourself, well, why didn't the hedge fund do What Keith Gill did and his followers because a hedge fund would do that to a certain point And then cut it because the STC will be in a home. Speaker 11: I see. So when they when the retail players rallied together, there was no I guess, there wasn't a single target? Or is that why the why wouldn't they be, why wouldn't they go after the Speaker 3: Well, if Goldman Sachs tried to Execute a short squeeze. They have executive management that at some point would have said, we've made enough money, not cut it out Because the SEC will be on our backs, and we don't need those 2 bit no good. So that's the point. One of the retail guys just said, hey, if Plotkin can short You know, over 100% or Plotkin and his cohorts could short over 100% of the float. Why can't we by enough calls equal to a 100% of the outstanding or the flow. So, it wasn't even up Plainfield is that the moral compass is different. The hedge funds got a little bit of a moral more moral compass, not that much more, but Speaker 11: And Charles, I think you told me that it didn't that it doesn't take a rocket scientist to realize there's a risk of a squeeze when you have over a 100% of Speaker 5: the Yeah. Speaker 1: You know, Speaker 3: I was surprised when they had the congressional hearing that they didn't they they they tried to set the retail side up for a fall, But it's really the, you know, the the hedge fund world. I mean, they poor risk management. You know, once you see, the exchange is reporting that a 100% of the float is being shorted, and you know there's synthetic shorts to carry it up to 140% or thereabouts. It only takes a 10% move in the stock to start some shorters to think about covering the short. Most hedge fund managers will start covering their losses if they're long and the stock goes down 10%, at 10% is sort of The demarcation. And if they're short and it goes up 10%, they start covering. This is a simple mathematics. If the stock goes from 100 To 90, you only need 10%, 10.5% to get back to break even. So you start cutting the most of that point. At 20%, you either double down Or cut the position altogether. Now Charles, I want to ask you about something I Speaker 11: think we've discussed in the past. We're big we're obviously very, very big fans of NASDAQ But I was talking to a nicey market maker and he said he felt sick to his stomach that day when you could only put in sell orders to that list of stocks. How did that come about? Speaker 0: Well, like I was alluding, even the market makers on the New York Stock Exchange were sick to their stomach that broker dealers and clearing houses were not allowing retail investors to buy. Did you just hear that? Speaker 11: Well, he didn't say NYSE, he said NYSE, NYSE, New York Stock Exchange. Nice, the market maker. And he said he felt sick to his stomach that day when you could only put in sell orders for that list of stocks. How did that come about? Well, like I was alluding to before, Speaker 3: the market makers, we're basically selling to Robinhood and and the Reddit crowd Naked calls, long. And they were short the call because it's double entry accounting. Somebody's long and somebody's short. And the market makers did not hedge in the beginning. But then when they started hedging because the volume of calls went to the point where it became dangerous, The hedge to a short call is to either buy another call or buy the stock. Speaker 0: I want you to know right now that if you watched any YouTuber or Rumble or anybody else on social media that told you that buying calls is not the way and that buying calls just gives free money to the market makers, that person is either 1, uneducated in the manner or 2, a paid shill Because call contracts force hedging by the market makers. Mom's down there with her. Don't worry about her. She'll be okay. You're just a little pissed off. But if you ever heard any YouTuber say that you should not buy calls, You need to reassess if that's someone that you should be listening to and if they even have your best interest in mind. I'm not telling you to go out and buy weekly, you know, Call contracts expire in a week. But I'm telling you that anybody that was pushing that agenda was either 1, uneducated or 2, purposely trying To get you to stop buying the call contracts because they are the biggest threat to the market makers and short hedge funds. Because when retail buys Call contracts, the market maker can do 2 things: they can either do nothing or they can hedge for it. And a lot of times, even up until now, they've done nothing. But when that volume gets out of control, they have to hedge for it as well as the broker dealers and clearinghouses, etcetera. Speaker 3: And it's much easier to go in and buy the stock electronically than buy another call, became dangerous. But then when they started hedging because the volume of calls went to the point where it became dangerous, the hedge to a short call Is to either buy another call or buy the stock and it's much easier To go in and and buy the stock electronically than the stock. So they bought the stock and in buying the stock, they were moving the price up. And their attitude was this call buying will stop. So let's buy the stock, hedge our current position and hope that The buyers of these calls stopped, but they didn't. They just kept going and going and going. So the buying of the long stock on the short call became the issue. And so it got to Speaker 6: the point where the Speaker 0: exchanges and regulators were aware that market makers becoming illiquid, they have it. Now, you just heard the chief executive officer of Interactive Broker tell you that call contracts and exercising call contracts Speaker 1: are the most dangerous thing for short hedge Speaker 0: funds and broker dealers and so on. Then you heard Janet Yellen, and Jerome Powell state that, Overleveraged hedge funds and, shadow banks are the greatest threat to global financial stability. And now you're hearing a hedge fund manager of over 40 years explaining to you that call contracts and volume buying of call contracts and exercising, is literally the worst thing for a short hedge fund and a market maker. Speaker 3: Settle these trades and they need capital to do that. And they were spending their capital, which is on the, To cover the short call. And then that's what blew it. And then they had to tell, stop buying the stock, no more buying the stock unless you're a plot Ken or hedge funds. Speaker 0: William, look at dollar store Liam Neeson over here. This motherfucker works for Citadel, and look at his gulp When Charles Grandante states that they they forced the broker dealers to pull the buy button. Watch this. Look at his Adam's apple. Right? Speaker 3: Cover the, the, the, the short call. And then that's what blew it. And then they had to tell, stop buying the stock, no more buying the stock unless You're a Plotkin or a hedge fund where you're short. Right. And you want to reduce your risk, but no more buying for speculation. You can buy to cover a short. Speaker 0: That's right, ladies and gentlemen. Speaker 3: This man is a fucking alpha. Speaker 0: And look at dollar store d Liam Neeson and his cohort over here that work for Citadel, absolutely Nervous as all hell, hoping that this guy would shut the hell up. Here's a hedge fund manager. This is unrelated to AMC and GameStop, I think because I don't know who this guy is, but here's a hedge fund manager that this year is down $3,500,000. Speaker 1: I'm just doing a hedge fund. I own a trading firm at Ox Trading. And how much did you make per year or did you make this past year? Oh, you don't wanna know. Down about 3 and a half $1,000,000. You're down about 3 and a half million? And how long have you been in the stock trading industry for, managing a hedge fund? Oh, managing a hedge fund? Twenty plus years. I've been in the industry before you were born. 1986, MBA from Morgan Stanley. And why has this year been such a bad year for you Speaker 12: with the current market conditions? What what happened? Speaker 1: So I make money when things go up and down, but, unfortunately, things went straight down. Positions, some of them are down 70, 80, 90%. It's very Speaker 0: Even hedge fund managers can find themselves in positions where they're down 70, 80, 90%. And, it's unlikely that they have as much upside as a great value stock Like AMC or GameStop. Speaker 1: Very hard to hedge and make money when things go straight down. Speaker 7: I don't have time Speaker 0: Now we've heard from Thomas Peterffy of IBKR, we've heard from Janet Yellen, we heard from Jerome Powell, we heard from Charles Gridante, hedge fund manager $100 Speaker 13: is a Big number to start with. Very few Speaker 0: And his tool bags over at Citadel. Now you're gonna hear, Hedge funds and Robinhood get grilled in front of the, committee on United States Committee on Financial Services. Speaker 7: I just need a yes and no answer. Wall Street hedge fund managers and the CEOs of Robinhood and Reddit were among those grilled by U. S. Lawmakers Thursday about the recent Reddit fueled trading frenzy that sent shares of GameStop soaring. But amid the often fiery exchanges and finger pointing, the most clarity may have come from Reddit user Keith Gill who promoted his investment in GameStop on social media and who was otherwise known as YouTube streamer Roaring Kitty. Speaker 14: A few things I am not. I'm not a cat. I am not an institutional investor nor am I a hedge fund. I'm just an individual whose investment in GameStop and posts on social media were based upon my own research and analysis. Speaker 7: He's one of 5 men at the center of the saga, which which roiled Wall Street in January prompted probes by several federal and state agencies. Billionaire Republican megadonor and Citadel CEO Ken Griffin was among those who defended their businesses to the Democratic led House Finance Committee, which probed how Reddit users trading on retail such as Robinhood squeezed hedge funds that had bet against shares of GameStop and other companies. Griffin, majority owner of Citadel Securities, a Robinhood market maker, was castigated for evading his question about whether market makers provide the same prices to All brokers. Speaker 15: The Robinhood order comes from a community a community of traders who tend to trade in smaller size. Speaker 6: That isn't my question, sir. You're abating my question by making some other questions. Speaker 7: The Reddit rally drove massive volatility in GameStop and other shares, prompting the post trade clearinghouses that guarantee trades to call for 1,000,000,000 of dollars in extra collateral from Robinhood and other retail trading platforms. In response, Robinhood and other platforms suspended buying in GameStop and other affected stocks on January 28. Lawmakers from both parties were outraged and questioned if the trading platforms were siding with hedge funds over retail investors something Speaker 0: Of Of course, they were. That's why we're working on Lit Exchange. We've been working on it for over 2 years. You can go to litexchange.comorlitexchange.app, with no e at the beginning of exchange in order to sign up for more information when we are able to release it, our founders program, so you can an owner in the company if you'd like and for beta testing opportunities as well. We are almost out of slots. We have almost 15,000 people signed up, and we will no longer be allowing, sign ups to occur once we hit that number. So if you wanna pop your email address there, feel free to do that. But this I didn't start doing YouTube or Twitter or anything like that with the intentions of creating a corporation or a company or a brokerage firm. But I realized that if we want to make the changes that we want to see in our stock markets we've got to do it ourselves because nobody's going to do it for us. Not this fucking asshole. Not that asshole. None of these guys are gonna could could give a shit about us or whether we're making money or whether we're losing money. They are only looking out for themselves. That's why Ken Griffin didn't wouldn't answer question, that's why the little boy from Bulgaria pulled the buy button, that's why Thomas Peterffy, the CEO of IBKR, was so fucking scared that's why Janet Yellen says that over leveraged hedge funds and shadow banks are the greatest threat to financial stability. That's why Charles Grandontay and his 2 cronies over here, These 2 cronies of Citadel, I should say, were freaking out when Grandontay was spilling the beans on what's actually fucking happening. Lootexchange.com. Speaker 4: Hey. We Speaker 12: don't answer to hedge funds. We serve the millions of small investors who use our platform every day to invest. Speaker 7: Tenants said the situation would have been significantly worse had Robinhood not suspended buying. Speaking of which, Buyers briefly scooped up GameStop shares on Thursday, reversing the stock's morning losses after Gill, a. K. A. Roaring Kitty, said he remained bullish about the stock following its recent rally and sell off. Speaker 14: As for me, I like the stock. Speaker 7: Behind him while he spoke was a poster of a kitten with the caption, hang in there, and a parent message to fellow GameStop investors. Speaker 0: Badass. In case you're unaware, There are 5 entities that have $2,100,000,000 invested in Choluchy Capital. Of that, 2,100,000,000, Over 28% of that entire $2,100,000,000 is short AMC stock. They have over $590,000,000 worth of puts. These are people who are absolutely desperate to win or lose on this because they don't have any other choice. John Ackerby is with formerly with the Harbour Trust, it seems, And he is with this company here in the Cayman Islands called Carney Group. Here's his photo right here so you can see what this guy looks like. Oh, that's not the right one anyway. Oh, would you look at that? There's his contact details. But don't reach out to him. I I don't think that's a good idea. Oh, well, it's just out there on the web. And this is Leanne Golding. She's a former vice president for Goldman Sachs and now works for the Harbor Trust. There she is with with the Hedge Fund Association, hedgefund association.org, board of directors. For the Cayman Islands, They have over $590,000,000 short position against AMC currently. As you can see here, this might be a little small, but it says here the Choluchy Offshore Fund is the master feeder arrangement to Choluchy, Capital. And this is Leanne Golding and John Ackerley are the general partner, manager, trustee, or director of the Triluci Offshore Fund. This is the address in Puerto Rico for Triloci capital. Here's their phone number. They're open 9 to 5, Monday through Friday. They have another address at 250 Park Avenue, New York, New York, Suite 1476, to be specific, with their other offices. But when you look online, you can't find out who's in that office. They have 1 employee, actually 2 employees now, a website with 0 pages, just a splash page, and 16 followers on LinkedIn. It was created by Jared Dubbin. He's currently with was with ExodusPoint and he left ExodusPoint to start this company, Trolluci, January 13, 2021. That was 2 day sorry. Yeah. That was 2 days before AMC completed their share issuance. And just about 2 weeks before they pulled the buy button on January 28, 2021 of AMC and GameStop. He was then joined by Paul Michael Zucker in April of 2023 as the c o o, CFO of that company. Let's backtrack a little bit here. These broker dealers and these corporations that were created in January of 2021 have held that same short position that almost half a $1,000,000,000 plus. It's more than half a 1,000,000,000 in short position against AMC since January of 2021 because as I've said before on this channel they can't close their position. They don't have enough shares. And if they do close the position, they will have to buy contracts and or shares or both. Mr. Plotkin, you're not right. Looks like Gabe Plotkin believes he was not bailed out Bye, Citadel. Here's Robinhood CEO, Vlad Tenev, getting grilled Again on CNN. Speaker 6: I want you to address the obvious. This looks like a move by an outfit called Robinhood, which is supposed to be taken from the rich and given to the poor and doing exactly I want you to address the obvious. This looks like a move by an outfit called Robinhood, which is supposed to be taken from the rich and given to the poor and doing exactly the opposite. That when the big guys including one of your main investors in your company started to lose, you shut down the game to starve the little guy. Fair criticism. Speaker 12: That's not what it is at all. And I know you started this segment. It really resonated with me because you described the story of Robinhood. Robinhood started 5 years ago by pioneering commission free no account minimum mobile investing And we've been the spokesperson of the individual investor, and our whole goal as an institution is to enable those customers, empower them, and give them access to the markets because for the longest time, markets have been only accessible to the wealthy. And so Do Speaker 0: you feel empowered when the broker dealer takes away your right to trade, takes away your right to buy the stock, colludes with hedge funds and market makers and clearing houses To make you lose money? Does that empower you? Speaker 12: The entire industry adopted our business model in 2019. And in 2020, We added millions of new customers. The entire industry added millions of new customers who took advantage of the market rally and became investors for the very first time. So, you know, we had to make a very difficult decision to protect, our Our customers and our firm. Why? But we in no way, when they Speaker 6: Explain why you had to do it if it wasn't to protect the guys Who had shorted, the stocks which are the big hedge funds. How are you helping the little guy investors? Speaker 12: Well, I know that there's rumors around that, you know, we were directed by market makers or other market participants to do this. And I wanna be a 100% clear. This decision was not made on the direction of any market maker or, other market participants. So why'd you do it, Sajid? Robinhood, as a brokerage, has lots of financial requirements, As we see requirements, we have to put up money at clearing houses. The amount of money that we have to put up depends on market volatility. And We're in historic, we're in a historic situation where there's a lot of activity and a lot of buying concentrated in a relatively small number of symbols that are going viral on social media. So we haven't really seen anything like this before. And to to prudently manage, The the risk and the deposit requirements, we had to restrict buying in these 13 stocks. What customers that held them could sell? Speaker 0: 13 stocks, not just AMC and GameStop. 13 stocks like I told you guys. And Vlad Tenev says that they did not collude with anybody else. But it looks like the chief operating officer and the president of Robinhood joined Jim at 5 PM, on a call with Citadel, I should say. So they had a call with Citadel on January 27, 2021. They reached out and want to speak this evening, and we believe that they will make some demands on limiting payment for order flow across the board. Black Tenev says, maybe this would be a good time for me to chat with Ken Griffin. And then they said that anecdotal evidence says that several very large firms are having very bad nights 2. And Jim Swartwart, 2 hours later comes back and says, everyone is. You wouldn't believe the convo we had with Citadel, total mess. Speaker 12: There's a lot of activities I made on the direction of any markets to do this. And first, around that, You know, we were directed by market makers or other market participants to do this. And I wanna be a 100% clear. This decision was not made on the direction of any market maker or, other market participants. So so why did you do it? Robinhood, as a brokerage, has lots of financial requirements. SEC requirements, we have to put up money at clearing houses. The amount of money that we have to put up depends on market volatility. And we're in historic, we're in a historic situation where there's a lot of activity and a lot of buying concentrated in a relatively small number of symbols that are going viral on social media. So we haven't really seen anything like this before. And to to prudently manage, The the risk and the deposit requirements, we had to restrict buying in these 13 stocks. What customers that help them could sell throughout, thousands of other securities and stocks on our platform were available to freely trade. And our number one priority, as you mentioned, is to make sure our platform is reliable, stable for our customers. We're serving our customers and giving them the tools Speaker 3: That's exactly what the question Everything in our power Speaker 12: to turn it back on as soon as rooted. Speaker 6: But that's the thing is that the trust is in question because it seems like The only people who are getting hurt were the big shots. And that if they were benefiting from this, your small investors now believe that you wouldn't have shut down the game. And just one thing without getting in the weeds, here. You don't control the listing venue for game stuff. Now, I used to work in finance, so I know this stuff, but the audience doesn't need to. The New York Stock Exchange Speaker 0: Listen to this. This guy makes an amazing point right here. Says, Oh, well, you guys don't control the listing venue. So well, just take a look at Speaker 6: Change to work in finance. Roll, the listing venue for GameStop. Now, I used to work in finance, so I know this stuff, but The audience doesn't need to. The New York Stock Exchange does. So if anybody was gonna control the listing and shut it down, It should have been them, but it wasn't. It was you. And the reason that they do it is very limited. They do it because they think there's evidence of fraud Or they think that there needs to be a material disclosure by the company that hasn't been made. And that's done to protect the investor. You check none of those boxes here because you don't control the venue. You didn't know about any information that GameStop or any of these other stocks needed to put out. You don't have any reason to believe there's fraud that you've articulated and you're certainly not protecting these people who've been living the dream of making money, Especially, it's been expensive to the big guys. So why should people believe you did this for the right reasons? Speaker 12: Well, we we have no choice. We have to comply with all financial, requirements and Yes. Speaker 4: The FTC hasn't said you had Speaker 0: he said we have to comply with financial requirements. That means we got margin called, Couldn't handle it, had to pull the buy button in order to get ourselves back under control and request from FINRA an exception of 1,000,000,000 and 1,000,000,000 of dollars in margin call requirements. Speaker 12: You comply with all financial, requirements and Yes. Speaker 4: They they as you said, you Speaker 6: had to do this. Speaker 12: Well, lots of brokers, have to comply with these financial requirements. Margin calls. Restriction issued restrictions on The Speaker 0: The NSCC margin called Robinhood for tens of 1,000,000,000 of dollars and they had to go to the NSCC Asset Center a moment ago, I just misspoke. The NSCC, the Clear Corporation, gave them an exception to a limited extent. And in order to meet the rest of that, They've pulled the buy button so that you can no longer buy shares of stock in AMC or GameStop or at least 13 secondurities? Speaker 12: Some of these names, and This is a industry wide thing. You yourself met mentioned that other brokers this week have imposed restrictions. And not speaking for other firms, but For Robinhood in particular, this isn't because there's, you know, deals happening with market makers we route to your market participants Speaker 3: Why did you allow people Speaker 6: to keep selling but not buying? The reason that is so troubling to people is that they were making money buying the stock because they were against the short side. And so by enabling them to sell but not buy, It sounds like you were allowing the hedge funds. And again, one of them owns a piece of you. And they had a big short position. And that looks like the stinky conflict that you didn't come out straight on from the start. Address that. Speaker 12: Well, none none of that had anything to do with our decision to do this. Again, this is Just looking at regulatory requirements, financial requirements. And we, 100% will always protect our customers where the entire business is operating to empower individual investors and has been since its founding. And that's what is committed to continue to do. So we want we don't wanna restrict buying these 13 stocks. We're doing the best we can to re enable it As long as it's operationally and, and and proven from a deposit standpoint. Speaker 0: There was absolutely no choice because they were margin called. And if they hadn't done it, They would have gotten they would have been bankrupt and insolvent anyway. Take now for 5 minutes to present your oral testimony. Speaker 8: Chairwoman Waters, Ranking Member McHenry and members of the Committee, I would like to thank you for this opportunity To share Melton Capital's perspective on the recent trading activities in GameStop. I'm the Founder and Chief Investment Officer of Melton Capital. I'm humbled by these unprecedented events. My investors on all many investors on all sides have experienced losses. I'm here today to share my own personal experience and be helpful in this conversation. I understand that part of the focus of this hearing is the decision of stock trading platforms to limit trading in GameStop. I wanna make clear at the outset that Melvin Capital played absolutely no role in those trading platform decisions. In fact, Nelpin closed out all of its positions in GameStop days before the platforms put those limitations in place. Like you, we learned about those limits from news reports. I just wanna make clear at the outset that contrary to many reports, Melvin Capital was not bailed out in the midst of these events. Citadel proactively reached out to become a new investor. Similar to the investments others make in our funds, there was an opportunity for Citadel to buy low earn returns for its investors if and when our funds value Speaker 0: Remember, this guy says they weren't bailed out, but, that's not the case. The hell is going on with this thing? The firms of billionaire investors, Steve Cohen and Ken Griffin, On January 26, 2021, poured $2,800,000,000 into a GameStop short seller that had already lost 30% that year. They invested $2,750,000,000 in Melvin Capital that was 0.72 and Citadel on January 26, 2021 Because they needed to bail them out. On GameStop, Bed Bath Beyond, AMC and other short positions, They plowed at $2,750,000,000 and they have received non controlling revenue shares in Melvin in return for their money. AMC was up 39% 2 days before 28th. GameStop was up 145%. And as we all know, over the following 2 days after this article and that this occurred, the stocks went up thousands of percentage points. So, yes, they were absolutely bailed out. Speaker 8: And went up. To be sure, Melvin was managing through a difficult time, But we always had margin access, and we were not seeking a cash infusion. I am here testifying today far removed from my background. Grew up in a middle class family in Portland, Maine. I went to a public high school. I studied hard and got into a good college. Upon graduation, I did not have a job. Today, I'm married with 4 children and my time is spent with my family and our Melvin Capital, which I founded 6 years ago. I named Melvin after my grandfather who ran a convenience store. I wanted the firm to represent his values, integrity, hard work, taking care of customers and employees, and commitment to excellence. Mellon Capital manages a hedge fund. Investors such as academic institutions, medical research and other charitable foundations, Pension funds, retirees and others invest with us. We have 36 employees and hundreds of investors, and I feel a personal duty to all of them. Melton specializes in the consumer and technology sector, including companies like GameStop, AutoZone and Expedia. Most of our investments are long. In other words, we buy stock in companies that create jobs, grow the economy and develop new products for consumers. We do this after extensive fundamental research, sometimes literally for years. When our research convinces us that a company will grow relative to expectations, We make a long term investment. When our research suggests a company will not live up to expectations and if stock price is overvalued, we might short a stock. Like with our long positions, our practice is to short a stock for the long term after extensive research. We also short stocks because when the markets go down, we have a duty to protect investors' capital. There are laws governing shorting stock and, of course, we always follow them. In addition, it's very important to understand that analysts not have been in short positions as Part of any network to artificially depress and manipulate down the prices to stop. Nothing about a short possession prevents a company from achieving its objectives. It is just Melvin's view about whether or whether Speaker 0: Everything this guy has said is a lie. Listen to him read his script. It could not be more bullshit. They were bailed out. Their short position was ridiculous. They were trying to short AMC and GameStop out of business because then they could keep all the profits from selling those shares and never having to buy them back and therefore, not having to pay any taxes on it either because they never had to buy back any of the shares to close those short positions. They received the bailout, and then they had to close down their, their fund. But that doesn't mean that those positions weren't simply transferred over to another entity, to another broker dealer, to another family office, to another short hatch fund. That's very easy to do. Speaker 8: Partly got into a good college. Upon graduation, I did not have a job. I named Melvin after my grandfather who ran a convenience store. I wanted the firm to represent his values, integrity, hard work, taking care of customers and employees and commitment to excellence. Melvin Capital manages a hedge fund. Investors such as academic institutions, medical research and other charitable foundations, pension funds, retirees and others invest with us. We have 36 employees and hundreds of investors And I feel a personal duty to all of them. Melvin specializes in the consumer and technology sector, including companies like GameStop, AutoZone, and Expedia. Most of our investments are long. In other words, we buy stock in companies that create jobs, grow the economy and develop new products for consumers. Sure. We do this after extensive fundamental research, sometimes literally for years. When our research convinces us that a company will grow relative to expectations, we Speaker 1: We make a long Speaker 8: term investment. When our research suggests the company will not live up to expectations and if stock price is overvalued, we might short a stock. Like with our long positions, our practice is to short a stock for the long term after extensive research. We also short stocks because when the markets go down, we have a duty to There are laws governing shorting stock and of course, we always follow them. In addition, it's It's very important to understand that absolutely none of Melvin's short positions are part of any effort to artificially depress or manipulate down the price of the stock. Nothing about a short possession prevents a company from achieving its objectives. It is just Melvin's view about whether it will. Specific to GameStop, we had a research supported view well before the recent events. In fact, we've been short GameStop since Melman's inception 6 years earlier. Speaker 0: You just heard this man say that they've been shorting GameStop 6 years before 2021. These guys do this for the long haul. And it took 6 years, 7 years actually, for Melvin Capital To 1, get margin called and then 2, have to close out, have to close their company after losing 53% in 1 month. They went from 12,000,000,000 to less than 6,000,000,000 very, very quickly and needed a $2,750,000,000 bailout from Citadel and 0.72 just to maintain what they had left so that it wouldn't blow up in the faces of the other shorts and the other market makers. Speaker 8: Because we believed and still believe that its business model, selling new and used video games in physical stores, is being overtaken by digital downloads through the Internet. And that trend only accelerated in 2020 when because of the pandemic, people were downloading video games at home. As a result, the gaming industry had its best year ever but GameStop had significant losses. In January 2021, a group on Reddit began to make posts about Melvin's specific investments. They took information contained in our SEC filings and encouraged others to trade in the opposite direction. Many of these posts were laced with anti Semitic slurs directed at me and others. The post said things like, we're clearly we need the 2nd Holocaust. The Jews can't keep getting away with this. Others sent similarly profane and racist text messages to me. In the frenzy during January, GameStop stock rose from $17 to a peak of $483. I did not think anyone would claim that the price of any relationship to the intrinsic value of the business. The unfortunate part of this so it is that ordinary investors who were convinced by misleading frenzy to buy GameStop at a 100, 200, or even $483 have now lost significant amounts. When this frenzy began, Melvin started closing out its position in GameStop at a loss, not because our investment thesis had changed, but because something unprecedented was happening. We also reduced many other Melbourne positions at significant losses for long and short that were the subject of similar posts. I'm personally humbled by what happened in January. Speaker 0: Notice how he tries to make himself seem like a good guy. How the retail investors are such bad people who are calling him names and being so mean to him. They made him lose 1,000,000,000 of dollars that belonged to pensioners and other investment funds because we were so evil As retail investors for buying up stocks of companies that we love like AMC Entertainment and GameStop. Absolutely not. This piece of shit along with the rest of the short hedge funds and the market makers that are doing this, are the ones that have invested that money to try to break these companies, so that they can keep those profits without having to pay taxes on them if they go bankrupt. Just like what happened to Toys R Us, just like what happened to Blockbuster. Retail investors have had enough. They said no fucking more. These stocks have squeezed multiple times Since January 28, 2021 and multiple times since this video. And in my opinion, they were just getting started. That was just the beginning. It was just a taste of what's really to come because the short interest has not gone down significantly. Not the real short interest anyway. Speaker 8: Investors in Melvin suffered significant losses. It is now our job to earn it back. And while I do not think that anyone could have anticipated these events, I've learned much from them, and I'm taking steps to protect our Yeah. Speaker 0: Shut the fuck up. As you guys can see here, On May 18, 2022, they closed the fund down, right. Gabe Plotkin and Steve Cohen of 0.72 That, went short AMC and GameStop GameStop and AMC and other mainstays during the 19 nineties. Instead, Stocks skyrocketed. Melvin lost had more than $12,000,000,000 and lost 53% of it all in January of 2020, one. And they scrambled to close their short positions. It was propped up by a $2,750,000,000 bailout from 0.72 and Citadel as well as requiring fresh capital from new investors. Citadel redeemed their investment a k a taking the money those pensions that were left in, in that company so that they could get their investment back. 0.72 also redeemed the infusion that they made. And then they gave what little was left back to the retail investor, to the retail investor that was invested in Melvin Capital. Here are Another interview with Charles Granante in which he talks in-depth about the AMC and GameStop situation. This is the last video that I'm gonna play tonight, and I'm gonna play this one without speaking because I think that you guys need to hear what he has to say. This is another interview from CorpGov, with Charles Gridante, the hedge fund manager of, like, 40 plus years. Historical context. Charles, as a story Enjoy, ladies and gentlemen. I wish you peace and wealth. WGBSFR. Speaker 11: Great history on Wall Street going back to Drexel Burnham in the eighties. I'll let him tell you a bit about his his history, including some Speaker 16: of that, wooden hedge funds like LTCM, and then he can weigh in on what he saw happening in the last couple of weeks. Charles? Speaker 3: Well, I think, I think the write up on my hello, everybody, First of all, but I think the write up on my background covers Drexel Burnham and and long term capital. I'll weave in long term capital and some points I'd like to make. This historic event is is historic in in in one dimension, and that is the retail side of the fence, played a major role in, in moving the market. I'd like to talk about 3 areas, the efficiency of the markets, Risk management and clearing and settlement, all 3 are involved in in the GME debacle. I'm using GME as just a generic term for the whole situation. With respect to efficient Speaker 0: As you can see, they're well aware that this occurred in multiple stocks, 13 different stocks and he's using GME as the generic term this entire situation. Speaker 3: Or involved in in the GME debacle. I'm using GME as just a generic term for the whole situation. With with respect to efficient markets, they always correct excessive behavior. And I think With the GME situation, we saw that, the hedge funds were muscling retail holders of GME and AMC. Speaker 0: I said I wasn't gonna speak during this one, but I think I remember I've watched this in the past. There are some parts in which he's very clear and others in which he's talking like a hedgie. That's not to be diminutive to Charles whatsoever, but the man speaks like a professional. And there are some things, some financial terms such that are pretty hard to understand. So I will try to clarify those when I hear him say something that I think is really important and you guys need to understand in different terms. Speaker 3: And the other stocks, retail holders of GME and AMC and the other stocks into submission. And, they got a little greedy, and this this usually, precedes A major correction in the situation, and I read it, and and Robinhood day traders saw an opportunity for the short squeeze. But let's be clear. The short squeeze was was executed by the retail side, but it was but it was created by the institutional side. The hedge funds created their own debacle, and that's a great segue into the concept the risk management. And In my mind, it's the something I learned at Drexel Burnham. It's the most important aspect of money management. You know, picking stocks is is a difficult game, but, risk management is the is the most difficult, the most important, and greed usually trumps risk management, and we're getting back to the concept of of How does a hedge fund get into a situation where they have to run to mommy and daddy for $3,000,000,000 to bail them out? Long term capital, same situation. And at the essence of their issues I mean, they had structural issues in their portfolio. We can talk about the Russian default in 1998, which led to the, debacle with long term capital. You can talk about other things with respect to the hedge funds, shorting GME, but the bottom line is greed. They overshorted. They they they shorted so much of the stock That, it wasn't it didn't take too much of, mediocre mathematics to figure out how to conduct a short squeeze. And, black swine events usually precede a liquidity crisis, and this whole GME thing, It's really a liquidity crunch. We could talk about how many shares were sold short of the whole the entire flow, which is evidence of of the greed. You don't I mean, I would never have a guy trading for me, a Drexel Burnham, wanting to show up a 100% of the float, and it's just I find it just amazing. It's it's it's greed. It's avarice. It's hubris. It's all of those things, and And, the GME was essentially a liquidity crunch, to get the as the bottom line at the stock level with Shorting the float at the hedge fund level with being over levered and over devoted into one position And at the broker dealer level, I mean, Robinhood wasn't prepared for this from a a capital point of view. And on all 3 levels, we had a liquidity crunch which resulted in, the fiasco, and everybody was pointing their fingers at everybody else. And The hedge fund guys were saying, what the hell are retail guys coming up against us for? And the retail guys are saying, what the hell are you guys Shorting the stock is it is worth more than $10, and and, you had, you know, And then you have the the broker dealer saying, do I have enough capital? Now the bottom line of all of this is and this is not the only, solution, but is that if they had same day settlement and clearing, the broker dealer would have known exactly what their risk were and they wouldn't have had to shut down trading. So I'm sure they shut down trading for many more reasons than that. I don't have the the the facts. I have opinions, But I do know that if you peel away the facts, you'll find out that, trading on a t plus two basis Results in in a in a dilemma. I mean, the dilemma is the day traders are generating profits on a real time basis. They're using those profits. They're plowing them back in whether they're making them on the derivative side using options or on the cash side using positions and stocks, And they're plowing those profits back into more positions. Meanwhile, those trades have not cleared and settled. The assumption is they will clear and settle, and you had the backing of DTC and the government behind that. But in reality, If somebody on the street is going to default, go under, go into liquidity, all those trades get busted, and you have a domino effect. So it It's it requires every broker dealer to take that settlement risk, and that's what we call it now, settlement risk, to a degree, and, they couldn't, you know, take it beyond what they did. Just as a as a backdrop from a commentary point of view, back in 1987, I was around when the crash happened. And, those days, it was t plus 5. So it took 5 days to clear and settle, And we had to shut down Wall Street for, I think, 3 3 days in order to for the back office to catch up with the trading. So that is an anecdote. So you can imagine when you have t plus 2 and you had all this wild trading going on, and the hedge funds got into a frenzy too, insurance companies and and other things. So so, the no one knew their balance sheet. The hedge fund wasn't sure of his balance sheet. The retail guys weren't sure of their balance sheet. Were they making money or losing money? And what their what was their margin? How much were they paying for the margin? And would the margin last, and would they be allowed to continue, buying calls and all that stuff? So, clearing and settlement It's something that I haven't heard on CNBC. If anybody has heard that discussed, I'd like to hear what they've heard. But that, to me, is one area that I'd like to contribute that needs some work in the system. They had to get it down to, same day clearing a settlement, and blockchain technology in my mind is the only way to go. Of course, it'll take, a couple of years to do all this, maybe a decade, but that is the vision that the people running Wall Street should have for, the environment when if you're gonna have real time trading, you gotta have real time settlements. So with that, I give it back to John. Alright. Speaker 16: Great. Charles, that's that's that's great. You might not hear it on CNBC, but you're we're hearing it from you, Charles. That's that's perfect. Why don't we why don't we bring Lawrence back in here too and, open us this up to a little bit more of a discussion. I mean, one thing I was gonna ask is, You know, is and maybe hope you can kick this off with them. Do we know I mean, I the people I've spoken to all seem to agree unanimously that After settlement would work. But I guess as Charles mentioned, you know, there's some structure in in place there that can't just be ripped out and replaced instantly. So maybe we just it's just gonna take some time. Hope? Speaker 13: Why is it still t plus 2? I mean, why don't we have it yet? Speaker 3: It's it's it's a it's a matter of technology, you know, the process. The, on trade date, everybody sets up to settle the securities and the money. So let's assume there's 2 broker dealers involved. Someone at Robinhood is, buying, GME, and someone at Charles Schwab is selling it. So Robinhood is is buying for their client, and they have to have the cash. And Charles Schwab is selling the security for their client, and they have to come up with the securities. Now mind you, the security could have been loan lent out on a on a short sale borrow. So if that's the case, I think there was some of this, buy ins, we call them, where a short seller and I'm sure it happened in this case. If you're short a 100% of the float And people start buying the stock, the stock has to come up somewhere for settlements. So the short sellers got bought in. In other words, they had to give up their their securities, and that starts a snowball. But It's it's t plus 2 because on day 1, everybody sets up. Robinhood has the money to buy the stock. Charles Schwab has the stocks. And then on Trade date plus 1, the money and the shares cross over, and the trust on on trade date plus 2, everybody reconciles their balance sheet. Charles Schwab says, I got the shares, and they wire, Robin's I got the and they wire Charles Schwab. And Charles Schwab says, I got the money, and everybody is is whole. In the middle of that whole process, you have DKs, which stands for don't know. So one side of that trade could say, wait a second. We didn't do that trade, or we didn't do that at that price, or we didn't do that many shares. The frequency of decays is a lot lower. I don't know the number, but that is, a monkey wrench that can come in and delay the process more. So right now, with with all of the, as John put it, the old world processing steps, which had been automated as as well as possible in my mind. The next level of automation is gotta be a complete wipe out of the old way of doing things. Speaker 13: And and you mentioned to us yesterday it's like doing manual accounting when you have the ability to, you know, order McDonald's within half an hour. So we're we're living in in sort of a a world that that seems especially for the Robinhood users of the world, Very, incongruous to what we expect. How did we get to this point? Speaker 3: Point. But phone call. I wanna just, the thing is we didn't have day trading at we always had day trading, but we never had it at the level we have it now, and it always existed At the institutional level, you had day trading at Goldman Sachs and and those guys, the investment banks, and and you had day trading in in the hedge fund world. But the retail world, the the amount of day traders was few and far between. So what I'm saying is those other day traders could have been controlled. They were controlled by the internal risk risk management system and the regulators. The retail day traders had no oversight. Speaker 16: Hope it's almost time for us to move on. But Charles, let's just give you a Chance to weigh in here. I mean, Charles, you seem like a free markets kinda guy. I mean, presumably you think the market should acts, according to what the participants wanna do. I mean, do you have any thoughts on, you People making trades when there's obviously something artificial happening. Speaker 3: Well, you know, I am a free market guy, but I do see the need for You know, supervision on these things. And, well, we we were talking a moment ago about Floating more stock. I was thinking about GME, and and the question comes up, why didn't they float some stock when it was trading at $300 a share? And, that's been a that's been a question that's I've seen quite a bit, come up these past few days, but Probably, let Lawrence, address the legal side of it, this potential class action lawsuit by issuing stock on GME when that was up at several $100 a share, especially if you feel there's there's no way to use the money to save the company. So if you if you take if you if you float more equity And you take the money in and you use that money to delay your bankruptcy and you can't use it to grow your business or reshape your business, Then you're opened up to lawsuits for, you know, taking advantage of the of the situation, only to go to 0 anyway. Speaker 16: Right. Okay. Hope, why don't you jump back in here? I think I think we got a couple questions, coming in maybe for Charles and the others. Speaker 13: Yeah. Charles, while we still have you for, this portion and we're all having more time with you, We'll have more time with you in in the 2nd hour. I I guess, just remind us how we got to this point where these short sellers became so confident in themselves that they were floating Or they were shorting more than the float? Speaker 3: Well, typically, a short seller, you know, does the analysis. I'm I'm a firm believer that short sellers know the stock better than guys that own it long. So they they do their analysis, And 9 times out of 10, 99 out of a 100, they're right. Then they test the water. They short some stock and see what the reaction is, The price volume action. And, obviously, they hit Jell O and they just kept shorting more and more. And The retail investors, you know, were dumping the stock out of fear the stock was going in down, and They also come out with their research. We we know now that several hedge funds publicize their negative research, which was really targeted not at institutional money but at retail investors, you know, why are you holding the stock? And they list all of the issues with the company, And and they just keep shorting, and nobody was was backstopping it on the long side, So they kept shorting it, and that's when the greed comes in. Because there is a point where you should stop. From a risk management point of view, you always have to worry about What's the black swan of this short? And the black swan is a short squeeze. The question is then at what at what size of a short In aggregate, everybody in the street, does it open the way for short squeeze? Find out the hedge fund even. I'm sure there were hedge funds, involved on the, short squeeze side, and they didn't I can't believe they didn't make the calculation properly. It's not a difficult calculation on what what it would take to move the short against you, and, That's how we eat bottles. So like I said, it's it's it's risk management that's just trumped by greed. They felt they had the retail side against the wall and they pressed it. And then when in his John's point, and here's the free market, when the reverse was put into place And the retail day traders went against the hedge fund managers who were short. They should have let them ride it, And I think they did because a certain hedge fund, had a had to seek more, capital, And they're likely going to, you know, dissolve. And so on that way, the the retail investors won, but The other point is regulators stepped in because the street was at risk. Speaker 9: Right. Speaker 1: So Speaker 3: I think the system worked the system worked fine. It it can be better With the settlement issue, that was the that's the thing. I get back to the settlement issue. Speaker 13: Well, it sounds like you believe that short sellers do still play a role in this marketplace. Speaker 3: Yeah. That came up in the 29 crash. Yeah. Short sellers play a role because they help make the market efficient. Now I'm not, you know, short sellers that speculate because they see a price like day traders can short stock Because the price volume action indicates the stock is going down, they don't do the analysis, and, those are the ones that get hurt. But short sellers play a role. They provide liquidity. They provide, pricing, and, you know, I think they they're value added. I I think there needs to be some sort of, limitation placed on To prevent someone from shorting a 120% of the flow. Speaker 16: I wanna just go back to that fateful Friday a couple weeks ago when we saw Robinhood, shutdown trade of lot of stocks and all of a sudden you had Charles Schwab, Merrill Lynch, Morgan Stanley. All of them were stopping by orders in at least this list of a dozen stocks. And so, you You know, people are, you know, talking amongst themselves. Is this fair? Is it the right thing? So, Nasdaq was not able to be with us today, but we've got a a comment here from Karen Snow, head of US listings And capital services at Nasdaq who says one of our main responsibilities, the exchange to ensure the capital markets are operate fairly and efficiently for all participants. Right now we're seeing the ecosystem try to balance some optimization in the markets with investor protection. But I'll tell you this, some people I spoke to who didn't wanna be on the record Told me it was frankly disgusting when you could see hedge funds cover their shorts and retail investors couldn't buy stocks that they liked and wanted to wanna support and learn more of. Charles, what what did you feel about that when you saw it happening? Speaker 3: Well, you know, I agree. I I think It was unfortunate that while the the institutional players were trying to muscle the retail side by shorting stocks, Inviting them to sell into the short, publicizing their research that they were holding on to weak paper, pressing the short continuously when the retail side, Namely Reddit. Speaker 0: You noticed that, Charles says that the shorts were trying to convince retail that they were holding on to weak paper. What that means in financial terms is that the short hedge funds and the mainstream media were pushing the agenda, that AMC and GameStop were bad investments. Speaker 3: It was tend to sell into the short. Speaker 0: Inviting people to sell into the short By pulling the buy button Speaker 3: Publicizing their research that they were holding on to weak paper, pressing the short continuously When the retail side, namely Reddit and and Robinhood, traders, Did their own analysis. They realized that they could execute a short squeeze. As I said earlier, the the the hedge fund side of the fence created their own problem. So I I believe the retail should have pressed their bets the same way the short side pressed their bets. The short side pressed their bets to a 100 plus percent of the float. Obviously, they were using more, synthetic shorts, to get above a 100%. And the retail side, when they started going long using calls and buying stock in the cash market, they were cut off short, and could not execute their strategy, to the fullest. Now it remains to be seen how much of a street problem existed In terms of the balance sheet, that would be the only excuse to have stopped the retail side from buying the stock. And the second factor is, I'm sure the the short sellers had buy ins. Here they are short the stock, And the true owner of the stock, say, it's some, institution, say it's a it's a pension plan. The stock hits $300 a share, and the pension plan says, sell my 40,000 shares at $300. Meanwhile, the hedge fund I'm not gonna name hedge funds, but they were sitting on the stock. They had borrowed it, shorted it, and now they had to go out and get it. Maybe they didn't have cash. Maybe they had to go back to their broker deals and say, we've we've gotta borrow money against our other positions with you To buy the stock and return the borrow, that ends up creating a a cog in the street. And so, with the as we said earlier, with the t plus two settlements, it doesn't take much for the street to say, Wait. I don't know where the risk is. I don't know who is holding a balance sheet filled with margin risk. We're not even sure these hedge funds can meet their margin call. Their LPs are not gonna come up and give them more money. You're not dealing with the Citibank or JPMorgan where the government will bail them out if they get into a margin squeeze. You're dealing with a hedge fund that will say, I'm out of business. Speaker 16: Right. Speaker 3: So, in summary, I agree with the retail side. I think they got, hammered a little bit too much, But once we get to see the whole picture, there may be a very good reason why it had to happen. Speaker 13: Charles, there's a related question here for you from an audience member, Tony, if you're still on, this is your question. The question is what happens with a short when the stock becomes delisted? Do you know? Speaker 3: Well, that's a good question. When the the short is still in place, But typically, when it's delisted, you have, once again, the original owners of the stock that have lent their stock out to the short sellers calling for the stock to come back because they wanna dump it. So you get you get a lot of buy ins or the hedge funds gotta cover their shorts to close out the position. And I think the prime brokers, that's another area that hasn't been talked about at most. The prime brokers knew should have known the balance sheet even though Hedge funds use multiple prime brokers. They should have known the balance sheet in terms of what their short position was. And and the problem with shorts is that as the short goes against you, it becomes a bigger portion of your portfolio. It's it's a lot better to be long a stock going down than to be short a stock that's going up. So, as the short became a bigger percentage of the hedge funds portfolio, the prime broker had to know it. And I haven't heard I haven't read anything yet. Maybe somebody has where It's Speaker 0: a lot better to be longer stock when it's going down than to be shorter stock when it's going up. Speaker 3: Any of the prime brokers or the hedge funds stepped in and, and stopped them from from acting, as well. So The the the main thing is that the whole system came to a screeching halt, and I get back to my t plus 2. If we have blockchain settlements And we can do it if we can trade real time, why can't we settle real time? We can't, but that's the ideal world so that everybody knows where they stand From a balance sheet point of view and a portfolio point of view, when you have t plus 2, there's too many question marks. That's a good point, Michael, and I think, there's a potential conflict of interest because you had You had somebody who's involved with Citadel, who was also involved with the hedge fund, right, that was shorting the stock. And 1 other player we need to bring into the picture who I I know made a phone call when They got the wind of this fight between the short sellers and the retail side, and that is the banking system. You know? The prime brokers are funded by the banks, Citibank, JPMorgan, and they make a phone call to, Citadel or to other players. And if they didn't give them a comfortable feeling that they understood the risks, Then the bank says, well, your credit line is going to be, you got 42 hours Speaker 1: Mhmm. Speaker 3: 48 hours to resolve this question because we're pulling the credit line. So you get that kind of, you know, cog in the wheel too. So there are a lot of players. And, Michael, that's a good point. The the banks behind all of that, had a play and should be at the table as to what their role was. Yeah. I think the the the key phrase here is Redistribution of wealth. The left let's use AOC as just a metaphor for the entire crowd. That side of the fence will start with the following rationale. What percent of the population Own stocks directly. What percent own stocks indirectly, but not directly? It's for like a pension plan. And what percent don't own stocks at all? And they will focus on the 3rd, party. And I don't know the number, but I imagine it's millions and millions of people that don't have any stock investment either through a pension plan. Obviously, no four zero one k, no hirer. And, these are the people that they represent. These are the people that they live across the border. So that'll be the focus. I mean, if I was advising her, I would say, let's get the numbers. And let's then talk about how can we help those people by taxing capital gains more, number 1. How about they're even talking about taxing, unrealized capital gains. I don't know how they're gonna do that from my county point of view, but that's come up. So, I mean, Janet Yellen said she's She's willing to think about it. So they're gonna think about ways of taxing the people in the markets, especially those directly in the markets like us, And, that is not good in a not so much from a selfish point of view, but From a GDP growth point of view, you want free markets that are regulated so that we have a level playing field, but you want free markets so that Capital, formation can take place and and flow where growth is. Now it happens to be technology, and you want that that play to take to take on. They'll stop that or slow it down tremendously By, by changing the tax structure, look what happened to Europe. I mean, Europeans didn't elect own equities until about 20 years ago, Did not own any equities directly till about 20 years ago. So, that's what socialism and that kind of thinking brings. Speaker 13: Alright, Charles. I think we'll have you leave us with these last Speaker 0: Alright, ladies and gentlemen. There you have it. Really good insider information from hedge fund manager Charles Ferrante speaking directly on the AMC and GameStop situation when it occurred, starting months after it occurred, and give you some really great insights and pretty much letting you and I know That this isn't over. This isn't the kind of thing where companies just close their positions and move on. For example, Melvin Capital was short GameStop for 6 years before the issues that happened in January of 2021 and AMC as well. And then it took them another year and a half on top of that, seven and a half years before they finally shut down and Lou lost over $6,000,000,000 of their clients' funds. So I want to leave you with that. Please make sure you do me a favor, drop a like, Feel free to subscribe if you want to learn more and check out lootexchange.com. I wish you peace and wealth. We're going to be so fucking rich. That's the TLDR. Let me show goddamn rich. Speaker 8: Okay. 3, 2, Speaker 2: I want my fucking money. Griffin, I want my fucking Listen, I want my fucking money. Speaker 3: You're an original. Right? Speaker 2: I'm yelling. How do I put me the fucking money?
peruvian_bull
Posted - March 17, 2024 at 4:47 PM
Saved - March 17, 2024 at 7:48 PM
reSee.it AI Summary
Some tradfi bros disagree with me, but they're wrong! Let's talk about $GME, DRS, and the morality of markets. The GME phenomenon isn't just angry retail investors, it's about squeezing big whales. The SEC admits retail caused the volatility. Shorting over 100% is abusive. Liquidity isn't everything, and phantom shares shouldn't exist. There are examples of manipulated markets. DRS doesn't improve things. Hedge funds shouldn't force outcomes on companies. The markets are broken. Rules are unfair. They keep getting away with it because the damage is widespread. I believe in the fundamentals of Gamestop and will continue to hold.

@peruvian_bull - Peruvian Bull

some tradfi bros like @ConwayYen disagree with a lot of what I say. since they are intelligent, their points are worth considering. but they are WRONG! Time for a thread on $GME, DRS, and the morality of markets. 🧵⚡️👇

@peruvian_bull - Peruvian Bull

@ConwayYen As someone who went to college, got degrees in finance and economics, and went to work in corporate fintech I understand these people. What the Gamestop Apes say sounds ridiculous. We were taught that markets are efficient. Regulators are good.

@peruvian_bull - Peruvian Bull

@ConwayYen These facts were pounded in our heads so often that we developed rationalization mechanisms to explain why things happened. On the face, the GME phenomenon seems like a bunch of angry, uninformed retail investors who want to shake their fist at a system they do not understand.

@peruvian_bull - Peruvian Bull

@ConwayYen The truth is, the tradfi bros who speak like this do not understand $GME and were not there during the runup. What they understand is what they've heard in the media- what they were told. And they filter the world through their own biases that the market is "always right"

@peruvian_bull - Peruvian Bull

@ConwayYen To them, the GME fiasco was an overly shorted company that got a bunch of retail attention, and the shorts covered, and now these investors are bitter and angry at the system and wished they had made more money. But this isn't the truth!

@peruvian_bull - Peruvian Bull

@ConwayYen In fact, the SEC themselves admitted as much in a report released in October 2021. The massive volatility and price swings in Gamestop in January was a result of retail buying, not of short covering. https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf

@peruvian_bull - Peruvian Bull

@ConwayYen The SEC admits that this was retail, and perhaps other institutions, who wanted to squeeze some big whales who got caught with their pants down. See that last sentence- very telling!

@peruvian_bull - Peruvian Bull

@ConwayYen Whatever the reason, we remember in real time what was happening- as the stock price went up, a cacophony of media began to sound about the "stupidity" of retail and why this squeeze was never going to work

@peruvian_bull - Peruvian Bull

@ConwayYen This psyop continued, to the point that Ortex who published short interest data CHANGED they way they calculated it, since many retail investors saw the 140% SI and aped in. https://www.reddit.com/r/FWFBThinkTank/comments/wbo3de/reminder_reported_short_interest_si_will_never/

From the FWFBThinkTank community on Reddit 363 votes, 26 comments. Short Interest Reporting is now calculated differently GME Borrow Fees Shorts never closed - they covered through… reddit.com

@peruvian_bull - Peruvian Bull

@ConwayYen But the 140% wasn't even the true number. some FINRA data feeds had the number above 220% https://t.co/8LAY9AXVF7

@peruvian_bull - Peruvian Bull

@ConwayYen And as @Cancelcloco points out, even others had the SI at 313%! https://t.co/uwJ3GHrBEl

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco This begs the question- to what extent does shorting become abusive? Over 100% short interest means by definition that not every short has a locate, because by that logic you would would only be able to short the float once over and then run out of borrows.

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco And this is the issue. @ConwayYen claims that "phantom or real it doesn't matter" because shares are fungible. This is illogical on its face. The entire point of buying a share in a company is that you believe you are getting a piece of ownership in it- https://t.co/gOdxs7vO1M

@ConwayYen - Conway

The reality is that markets have evolved far beyond this quaint notion of phantoms vs "real" shares. Shares are fungible. DRS does nothing to stop the creation of phantoms that trade on the market, completely ignoring shareholders that were actually led to believe that DRS was supposed to do something. GME is a great example of this. All of the frankly suspicious and egregious pushes to DRS as a means to halt shorting in the hopes of a rising share price have not done anything to stop the descent of share prices instead. We are now at a point where price is testing the lows from before DRS was even on a typical household investor's radar. All DRS has really done is to distract the household investing public from a major source of real price discovery: dealer flows, and the hedging thereof. Incidentally, DRS has also robbed retail investors of the ability and right to use shares they've already purchased with their hard-earned money to provide stabilizing hedging forces and liquidity (dealer long delta and gamma, organic ask, bids below spot). This is a major reason why retail-heavy stocks end up being so unhealthy and illiquid. Try telling a market maker that DRS will stop them from doing their job. They will laugh in your face if they even bother to respond.

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco You believe in the fundamentals, and you want to see the company succeed. The company has a limited number of shares authorized, so if more and more market participants view the company as valuable and buy, then prices go up. Too bad, so sad for the shorts!

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco Instead, imagine if Conway bought a share of Apple. Let's say Apple has 100 shares. But instead of buying a real share, he buys it from me. I am a new broker- PB Brokerage! I create a naked short, out of thin air, and sell it to you. Now, there are 101 shares out there

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco I provided you "liquidity" in the form of a new share that you wanted right away, but I also de facto diluted the share count of the company. With more shares trading, the stock price doesn't move. The company, which would have seen higher prices and could get the option to ...

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco raise equity now does not have that option. and the broker, me, gets to pocket the money! Pretty neat ain't it? So you pay money to buy a share, and the company doesn't benefit, and the stock doesn't go up, and therefore the fundamentals don't improve.

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco Tradfi bros want to sacrifice everything on the altar of liquidity. Is liquidity really everything? ake the argument to the extreme- allow infinite share creation of every stock. allow infinite money to buy the stocks. would the prices be representative of anything?

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco clearly not! so why then, is everyone so focused on liquidity. why are FTDs allowed to such a large extent within our markets- again, by definition, a stock shorted over 100% means there are phantom shares out there? if markets are efficient, why do we need phantom shares?

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco There are countless examples- but another is Global Links, a Nevada based real estate company. An investor bought 111% of the float and moved the shares into his brokerage, cash account. 50 million shares traded the next two days. https://t.co/1PaxdjufZ3

@peruvian_bull - Peruvian Bull

Man buys ALL OUTSTANDING shares of a publicly traded firm, and yet 50 MILLION shares trade. This isn't the "free market capitalism" you think it is. https://t.co/bWpO0nLOR0

Video Transcript AI Summary
In March 2005, the senate banking committee questioned SCC chairman William Donaldson about Global Links, a real estate company. An investor bought $5,000 of stock, acquiring all 1,100,000 shares available. Despite no shares to borrow, over 50,000,000 shares were traded in 2 days. Another investor bought 1,282,050 shares, exceeding the total issued shares by 111%. This raised concerns about abusive naked short selling in small companies.
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Full Transcript
Speaker 0: In March 2005, the senate banking committee confronted then SCC chairman William Donaldson with a story about Frank De Brookey's company, the Nevada based real estate holding company Global Links. An investor named Robert Simpson had set out to prove that small companies were indeed frequent targets of abusive naked short sellers. Simpson placed an order for $5,000 worth of stock in Global Links that got Simpson ownership of all 1,100,000 Global Link shares in the market. Not some of them, all of them. Speaker 1: There were no shares available to be borrowed, and yet in 2 days, there were over 50,000,000 shares traded. That's clearly something that needs needs work. Speaker 0: I was absolutely blown away when I bought 1,282,050 shares, which equated to 111% of the issued and outstanding.

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco this is one example of many - if you like, I can find dozens of companies that this has happened to. and the "derivative" argument is equally wrong. why should derivatives be allowed to trade if the underlying isn't even circulating?!

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco Conway thinks I'm ragebaiting people. I see it the other way- there is a massive grift going on in the market, and I am calling it out. Along with others. Is there a crime that you would get angry about, @ConwayYen ? What would that be? https://t.co/CYhvSk8Zox

@ConwayYen - Conway

not at all because it works both ways. that's literally how the derivatives market works. the price of stocks get driven down "unfairly" when there is a complete absence of response from the side that would rather not see prices get driven down. DRS makes it worse, not better!

@peruvian_bull - Peruvian Bull

Some people say, look, DRS hasn't moved the price, GME has trended down! umm, that proves our point. that the market is fraudulent. we are removing real shares from the DTC, and buy pressure is still high, and yet prices trend down. they changed short interest calculation

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco ... for a reason! Finance PhDs like @lawsondt used to be on the side of @ConwayYen ... until he saw the Brazilian puts amounting to 70% of the float appear on bloomerg and then disappear a day later. they claimed it was a glitch https://t.co/dfUna0tSjr

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco @lawsondt markets exist to provide capital to companies to fuel innovation and economic growth. they are not ends in and of themselves. the entire point of them is utility for other things! perhaps you need to buy a house. maybe compound your money for college.

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco @lawsondt hedgefunds should not be able to use derivatives to force outcomes on companies. Imagine if I went and took out an insurance policy on a tradfi bro's house. and then I paid an arsonist to burn it down. and collected the money. is that a free and fair market? No!

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco @lawsondt But yet, when we talk about excessive naked shorting, the counterarguments abound for "liquidity", "operational efficiency", "derivatives" etc These are not ends in and of themselves. they are supposed to serve a purpose. and that purpose is forgotten.

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco @lawsondt The markets are fundamentally broken. $55 billion of ECP was waived over the course of the "sneeze". does that sound fair? why can't I get a margin exclusion when my trade goes the wrong way? https://t.co/LWlubhH0Rz

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco @lawsondt Rules for me, not for thee. since the damage caused by things like naked shorting and inflation is ephemeral and ubiquitous, it is hard for tradfi bros to grasp it. well, they only stole 1% of everyone's wealth this year, so I didn't really feel it!

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco @lawsondt this is why they can keep this up for so long. if instead they came to your house and robbed you directly, you would think very differently!

@peruvian_bull - Peruvian Bull

@ConwayYen @Cancelcloco @lawsondt I do not pretend to know what happens if a stock is 100% DRSed. I do not pretend to know when shorts will close. I just know that the fundamentals for Gamestop look good, much better that the stock price, and I will continue hodlng! (//END).

noctis_research
Posted - March 29, 2024 at 1:47 PM
Saved - March 31, 2024 at 12:18 AM

@noctis_research - Noctis Research

$GME Short sellers covered ~2/5 of their 🩳and the price went to 500$. How do I know? Because I reverse engineered this graph from the @SECGov staff 'GameStop Report'. https://t.co/GKuzRB7rsF

KobeissiLetter
Posted - May 13, 2024 at 2:22 PM
Saved - May 13, 2024 at 3:32 PM

@KobeissiLetter - The Kobeissi Letter

BREAKING: Gamestop, $GME, short sellers have lost $1 billion in the first hour of trading today. https://t.co/Zc3EOovqTN

JohnLeFevre
Posted - May 13, 2024 at 2:53 PM
Saved - May 13, 2024 at 8:09 PM

@JohnLeFevre - John LeFevre

GameStop ($GME) was halted. Up 69% on the day. Because a guy named RoaringKitty posted a picture on X. https://t.co/SssXe8pXni

peruvian_bull
Posted - May 13, 2024 at 3:43 PM
Saved - May 13, 2024 at 4:51 PM

@peruvian_bull - Peruvian Bull

REMEMBER. They never closed their shorts!

@peruvian_bull - Peruvian Bull

3 YEARS AGO TODAY, JAN 28th 2021: Price was going parabolic, and then Robinhood turned off the BUY BUTTON on $GME. What was revealed would shock the financial world- and the story still isn't over! A THREAD 🧵🔥👇 https://t.co/47rH6RoFVV

GriffinsMayo
Posted - May 13, 2024 at 5:57 PM
Saved - May 13, 2024 at 8:23 PM
reSee.it AI Summary
GameStop's stock had a significant surge of 118%, the largest in over three years, following a post by Keith Gill, also known as Roaring Kitty. This caused short sellers to suffer losses of over $1 billion.

@GriffinsMayo - Ken Griffin’s Mayo PARODY*PARROT TEE*PARROTY

GameStop's 118% spike is its biggest in 3-plus years after Roaring Kitty returns with a meme 🎮 GameStop's stock soared Monday as much as 118%, its biggest intraday gain in over three years. 🎮 It soared after #KeithGill, aka #RoaringKitty, posted on social media for the first time in years. 🎮 #GameStop’s massive surge Monday sent #shortsellers reeling, creating over $1 billion in losses. https://markets.businessinsider.com/news/stocks/gamestop-stock-price-gain-biggest-sice-2021-roaring-kitty-return-2024-5

GameStop's 118% spike is its biggest in 3-plus years after Roaring Kitty returns with a meme Short-sellers betting against GameStop lost more than $1 billion on Monday. markets.businessinsider.com
Cancelcloco
Posted - May 13, 2024 at 10:37 PM
Saved - May 13, 2024 at 11:00 PM

@Cancelcloco - Ian Carroll

In case you’re wondering why the whole internet is talking about $GME today. Can’t stop Won’t stop #GameStop https://t.co/t16Bp8JUdL

Video Transcript AI Summary
The media lies about GameStop and Roaring Kitty's impact. Short sellers drove the meme stock mania in 2021. Archegos' collapse revealed complex market manipulation. Retail investors face market volatility due to shorts and ETFs. The term "meme stock" hides market manipulation. Retail investors hold GameStop shares despite price fluctuations. The stock acts like a meme stock due to shorts not closing. Buying and holding disrupts Wall Street. Market manipulation is illegal but prevalent. Hedge funds manipulate stocks to control the market.
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Full Transcript
Speaker 0: You're about to watch the media lie through their teeth like their life depends on it. That's because Roaring Kitty just came back, and GameStop broke the Internet. And then this morning, it broke the stock market. And it turns out that GameStop investors are everywhere. So I'm a catch you up on everything they've been hiding from you for 3 years that we dug up. 1st and foremost, we learned that all mainstream media is just the propaganda arm of the big money trying to short this company. Just a small collection of articles regurgitating that you need to forget GameStop. Surprise. And today, the lies have already started. They are trying to smear Keith Gill as though he drove the meme stock mania. We'll talk about this whole meme stock word in a second. But first, let's remember, no. He didn't drive anything. Short sellers drove the meme stock mania of 2021. By borrowing and short selling more than double the number of shares that even exist all at the same time. Most short squeezes happen between 10 20% short interest, meaning 20% of all the shares that exist have been borrowed and short sold. Well, we're at 27% short interest on GameStop right now today, and that's after they've learned to hide all their giant short positions. This is just everyone that didn't get the memo that you're not supposed to report that shit correctly anymore. Allegedly. Obviously. Because back in 2021, they had 226 percent short interest going into that squeeze. And then in the official SEC report, they showed that short sellers never really bought the stock. Red bars show short sellers buying. No. What they actually did is they committed crime in front of all of us, turned off the buy button, shuffled a bunch of things around, never bought back in because they couldn't have afforded to cover those positions. We're talking at least 100 of 1,000,000,000 of dollars worth of losses Had that all played out according to actual market mechanics. And then they colluded behind the scenes about turning off payment for order flow brokers like Robinhood, allegedly. But now let's talk about this term meme stocks. Right? You know, the word they invented to describe all these stocks that act really weird, obviously, all because of you buying because of social media. You and your $20 totally moves markets. And then they use that term meme stock to sort of precondition your mind when they're reporting on it to think of them as some special type of stock. Then they lie to you by telling you things like have been in a persistent and largely uninterrupted decline. Yeah. Persistent and largely uninterrupted except for that day and that day and that day and that day. See what this term meme stock refers to is a basket of highly manipulated stocks that are all tied together through very complex financial things behind the scenes that for a long time, the GameStop community was only speculating about until out of nowhere one day, this firm called Archegos run by Bill Huang just blew the fuck up. Basically imploded overnight on 1,000,000,000 and 1,000,000,000 of dollars worth of trades. And when we started to analyze why he blew up, it's because he was trading all kinds of meme stocks and other investments in swap baskets back and forth using all these super complex derivatives to hide the value of his true positions. So the counterparties he was trading with didn't know how much risk he had open and the SEC didn't know what the hell was going on. And you gotta remember, markets take like these trades take a long time to move. Like, a lot of these things are 1 year contracts, multi year contracts. And so, you know, the GameStop play was never gonna be short. And when Bill Hwang blew up, it took a whole year before his counterparty Credit Suisse had to pay the bill and they couldn't. So Credit Suisse blew up. They are no more. UBS was forced to take on Credit Suisse. I don't think they wanted to. Now UBS needs a bailout. This is from what? April of 2024? Yeah. Keep UBS in your prayers. They're gonna need it. And they don't just hide these things with swaps. They also short ETFs and do all sorts of shady ETF stuff. Like, ETFs are where you put a basket of stocks into a fund and then you can buy a piece of the fund. And, somehow this one is the one that contains a lot of GameStop shares. It just happens to be at, like, 600% short interest back in 2021. Probably just a coincidence. All the while for, like, the last 3 years, you can see how many retail investors are buying and selling any given stock on a platform like Fidelity because they publish those numbers. This is one day per bar. Green is the percent that are buying, and red is the percent that are selling of regular people like you and me. This is just an average month over the last 3 years, July. It's like 80% buying every single day. But during this time the stock price went down from what $2.10 or so down to $160 or so. Cause you know, when everyone's buying, that's when stock prices go down. Except if meme stocks were being crazy because of our trades making the market fluctuate like crazy, then when we're all buying, wouldn't that make the price go up? I mean, it's almost like there are some actors out there in the markets that have massive amounts of capital and the ability to manipulate prices through various nefarious means that can make it so that the prices of these mean stocks don't actually do what retail buying pressure implies they would do. I mean, if 2021 actually was just what it was and all the shorts covered and closed and they were all gone and it went all back to normal, why has the stock acted like a meme stock ever since? I mean, this is just my opinion, and this is just speculation based on, like, some evidence. But I mean, probably because the shorts never closed because they couldn't afford to. And when you have a highly shorted stock manipulated by all kinds of crazy swaps and baskets and ETF and all this crazy shit, You get all kinds of bizarre volatility that makes no rational sense if you look at it through fundamental regular market mechanics. And that's why we have this term, meme stock, to make it so you don't think too hard about why are these stocks doing this. And now you've got people like Andrew Tate YOLO ing 1,000,000 of dollars. Although, to be fair, most of us never left because we didn't break Wall Street with all these fancy algorithms or intelligent whatever. Like, we broke Wall Street by realizing that all we need to do is buy and hold and ignore their media manipulation, chivalry bullshit. They have no answer to that because the shorts never closed and someday they have to. And the higher the price goes, the more they have to pay every day to keep those short sales open. Whoopsies. And to be clear, this is not me telling you to buy anything. This is not financial advice at all. This is just me educating you about the history of what's been happening in the stock market. I mean, I'm not selling my shares anyway. I'm not here to make money. I'm here to watch motherfuckers go to jail. And I know what you're thinking. You're like, Ian, that's great, but it just kinda sounds like an out there conspiracy theory. Like, people aren't actually manipulating the markets like that. That would be illegal. Right? Yes. You are correct. That would be illegal. Speaker 1: You really gotta control the market. You can't let it lift. When you get a research in motion, it's really important to use a lot of your firepower to knock that down. Now you can't ferment. That's a violation of of Foment. Yeah. You can't foment. You can't create a yourself an impression that a stock's down, but you do it anyway because the SEC doesn't understand it. So you I mean, it's that's the only sense that I would say this illegal, but a a hedge fund that's not up a lot really has to do a lot. Speaker 0: So now you understand why
Cancelcloco
Posted - May 14, 2024 at 3:38 PM
Saved - May 14, 2024 at 3:57 PM

@Cancelcloco - Ian Carroll

There’s no such thing as a “meme stock” If there was- retail trades wouldn’t go 90% to dark pools and three years of constant buying and DRSing would have made the price go up, not down. Shorts never closed. https://t.co/NE6KtX6IwH

Video Transcript AI Summary
The term "meme stocks" refers to manipulated stocks tied together through complex financial dealings. Bill Hwang's firm, Archegos, imploded due to trading meme stocks with hidden risks. This led to Credit Suisse's downfall, requiring a bailout for UBS. Meme stocks, like GameStop, saw unusual price fluctuations despite retail investor activity. This volatility is attributed to large capital actors manipulating prices through various means, causing irrational market behavior. The term "meme stock" aims to divert attention from these anomalies.
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Full Transcript
Speaker 0: Now let's talk about this term meme stocks. Right? You know, the word they invented to describe all these stocks that act really weird, obviously, all because of you buying because of social media. You and your $20 totally moves markets. And then they use that term meme stock to sort of precondition your mind when they're reporting on it to think of them as some special type of stock. And then they lie to you by telling you things like have been in a persistent and largely uninterrupted decline. Yeah. Persistent and largely uninterrupted, except for that day and that day and that day and that day. See, what this term meme stock refers to is a basket of highly manipulated stocks that are all tied together through very complex financial things behind the scenes that for a long time, the GameStop community was only speculating about until out of nowhere one day, this firm called Archegos, run by Bill Huang, just blew the fuck up. Basically imploded overnight on 1,000,000,000 and 1,000,000,000 of dollars worth of trade. And when we started to analyze why he blew up, it's because he was trading all kinds of meme stocks and other investments in swap baskets back and forth using all these super complex derivatives to hide the value of his true positions. So the counterparties he was trading with didn't know how much risk he had open, and the SEC didn't know what the hell was going on. And you got to remember, markets take like these trades take a long time to move. Like, a lot of these things are 1 year contracts, multiyear contracts. And so, you know, the GameStop play was never gonna be short. And when Bill Hwang blew up, it took a whole year before his counterparty Credit Suisse had to pay the bill, and they couldn't. So Credit Suisse blew up. They are no more. UBS was forced to take on Credit Suisse. I don't think they wanted to. Now UBS needs a bailout. This is from what? April of 2024? Yeah. Keep UBS in your prayers. They're gonna need it. And they don't just hide these things with swaps. They also short ETFs and do all sorts of shady ETF stuff. Like ETFs are where you put a basket of stocks into a fund, and then you can buy a piece of the fund. And, somehow, this one is the one that contains a lot of GameStop shares. It just happens to be at, like, 600% short interest back in 2021. Probably just a coincidence. All the while for, like, the last 3 years, you can see how many retail investors are buying and selling any given stock on a platform like Fidelity because they publish those numbers. This is one day per bar. Green is the percent that are buying, and red is the percent that are selling of regular people like you and me. This is just an average month over the last 3 years, July. It's like 80% buying every single day. But during this time, the stock price went down from what $2.10 or so down to $160 or so. Cause you know, when everyone's buying, that's when stock prices go down. Except if meme stocks were being crazy because of our trades making the market fluctuate like crazy, then when we're all buying, wouldn't that make the price go up? I mean, it's almost like there are some actors out there in the markets that have massive amounts of capital and the ability to manipulate prices through various nefarious means that can make it so that the prices of these meme stocks don't actually do what retail buying pressure implies they would do. I mean, if 2021 actually was just what it was and all the shorts covered and closed and they were all gone and it went all back to normal, why has the stock acted like a meme stock ever since? I mean, this is just my opinion, and this is just speculation based on, like, some evidence. But I mean, probably because the shorts never closed because they couldn't afford to. And when you have a highly shorted stock manipulated by all kinds of crazy swaps and baskets and ETF, all this crazy shit, You get all kinds of bizarre volatility that makes no rational sense if you look at it through fundamental regular market mechanics. And that's why we have this term, meme stock, to make it so you don't think too hard about why are these stocks doing this.
IPEwithSBB
Posted - May 14, 2024 at 5:09 PM
Saved - May 14, 2024 at 8:26 PM
reSee.it AI Summary
During the GameStop trading frenzy in January 2021, it was revealed that not only day traders, but also wealthy players held long positions. The involvement of these players in the upward wave and whether it was a "pump and dump" scheme is still uncertain. Read more in my article.

@IPEwithSBB - Sasha Breger Bush

Just like last time. From my article on #GME in 2021: "Another apparently open secret: that the long positions in GameStop during that crazy trading week at the end of January were not just held by day traders. Some very large and very wealthy players also rode the wave upward, drafting the day traders to turn big profits. Whether this was a “pump and dump” scheme, and who may have been involved, remains to be seen." …andsense.org.user.s436.sureserver.com/blog/2021/02/g…

Cancelcloco
Posted - May 14, 2024 at 11:29 PM
Saved - May 15, 2024 at 3:39 AM

@Cancelcloco - Ian Carroll

. @slave_2_liberty I got you homie- Here’s an explanation of the actual market wide criminal conspiracy that GameStop exposed and how and why short sellers could actually blow up the entire global economy. Cameos by @blockbuster and @ToysRUs No exaggeration. https://t.co/RCmZZ3emCM

Video Transcript AI Summary
The video explains how short selling works in the stock market, focusing on GameStop. Wealthy individuals manipulate failing companies like GameStop to profit from their downfall. They use derivatives and leverage to make large bets, creating a risky interconnected market. When GameStop's stock unexpectedly rose, short sellers faced massive losses. Redditors capitalized on this by holding onto their shares, causing short sellers to scramble. This led to a showdown between individual investors and Wall Street, with the former refusing to sell their shares. Ultimately, the video highlights the power of collective action against financial manipulation.
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Speaker 0: So this homey said, I can't believe this GameStop thing is still going on. Can someone explain this to me? I love Ian and everything he stands for, but I literally have no idea what this is about or how one stock could have any real effect on impacting ultra wealthy people. I'm down to help. I just need to understand what's going on. I got you, Matt. I'm gonna try to put it all into one video right now. I've made lots of videos about pieces of this, but I'm gonna try to, like, actually explain the real thesis of what's going on and why GameStop very well could affect the entire market, bring down corrupt financial institutions on a big scale. Yeah. I gotta put my hair up for this one. Okay. Don't get scared of charts. We're gonna keep it really simple. When you buy stocks normally, you're buying at a lower price and you're hoping it goes up so you can sell it and make some money. Right? Well, there's no rule in the stock market that says you're not allowed to, like, borrow something from someone. Right? So you're allowed to borrow shares from your homie. And if you borrow something, you're allowed to do what you want with it. Right? Like, I can borrow some shares and then sell them on the market right now. I just have to return them later to make sure that homie gets his shares back. Right? So you're allowed to do this thing called short selling where you borrow some shares from whoever right now, and you sell them at the market right now hoping actually the price will go down, and then later you'll buy some and return them to your homie. And you actually make money because you return them for less money than you actually made when you sold them in the first place. So short selling is this thing where you can bet the market will go down, and it's like taking out a loan. And when the market goes down, then you close out the loan and you make some money. You have to pay a little interest to keep that loan open, but you can make a lot of money doing that, especially if you see a company that's, like, obviously gonna die because it's a failing business model and you wanna make some money while it dies. But you want to be really careful because if you have all these loans open and you're paying interest to keep your loans open, you're hoping the price goes down, but then it starts to go up a lot, you could lose a lot of money because you'd have to buy them all back at a higher price to pay back your loan and you had to pay interest to keep your loan open and prices can go up infinitely theoretically. So short selling is pretty dangerous and everyone knows that. And back in the nineties, all these rich people like at Bain Capital, like Mitt Romney, they realized that they can actually take companies down from the inside and basically loot a company from the inside, take all its money, give it to them and their buddies, the shareholders, and then bankrupt it and leave, and there's not really any consequences. You just buy into the company, buy a bunch of shares, get yourself on the board, take it over, start hiring people that'll do what you want, mismanage it, do a bunch of buybacks so the money gets paid back out to you and the shareholder buddies, and you can really just mismanage the company into the ground and basically loot it for all it's worth. And when it goes bankrupt, it's like, oh, well, whoopsies. It was destined to fail. We'll just move on to the next company. Whatever. My mistake. And they made 1,000,000,000 of dollars doing this to Toys R Us, and everyone else was looking around like, damn, that was a pretty solid strategy, Bain Capital. Maybe we could do that to some other companies. And this was just after the dotcom bubble happened. And so there's this whole Internet thing. Amazon was on the rise, and everyone kind of realized, like, you know, there's all these retail stores out there that are probably in big trouble, like Blockbuster and Sears and GameStop, you know, companies that are bound to fail. So why don't we make them fail faster and profit off of that? Plus, it turns out that these dudes that work at places like Bain Capital that can take these places down from the inside out, turns out they have a lot of friends in the market that like to short sell. And the thing about supply and demand is when I'm borrowing, like, 1,000 and 1,000 and 1,000 of shares and selling them into the market right now, all that selling actually makes the price of the stock go down because, like, when everyone's selling something, it gets valued less. But when everyone wants to buy something, the value goes up. Right? So short selling actually makes a stock's price go down. And these guys realize that, like, you know, you like to make money when stocks go down, and I like to make money when companies get destroyed. And when we do those both at the same time, everybody wins, except the company, of course. And then it turned out they were like, hey. We both know a lot of people in the mainstream media that like to report on failing companies. You know, the kinds of reports that make investors scared and make them wanna sell a stock. And they realized they kinda had the dream team for bankrupting companies and they could all make money on the way down and no one would ever stop them because it's kind of legal. And it actually started to work so well that they started to get really greedy and they started to naked short sell which means like no one's checking if we're even borrowing these shares that we're borrowing in order to in order to short sell. So why even borrow them? We can just short sell shares and say we borrow them and the pan company is gonna go bankrupt anyways and when it does go bankrupt, we don't even need to pay that loan back because there's no shares to give back. They're gone. And fun fact, it's all tax free money too because there's no company to the shares are gone. Free money. So some of them got really greedy and started selling without even borrowing the shares in the 1st place. But we'll come back to that in just a second. Because the other thing that's important to realize about the stock market is it's like this big casino game now. So it's not like the big boys aren't just playing with, like, a share of a company. They're playing with these things that are called derivatives, which is like leveraging your assets to take out loans to, like, make big plays, big gambles. So they use all these special kinds of contracts where, like, they put up collateral in order for their bank or whoever to let them trade on a whole bunch of extra money they don't really have, but they've got collateral. So if it starts to go sideways, the bank can just take their collateral and it's all safe. But, like, this way, I can trade with 100 times the money of what I actually have. It's called leverage. And all these different tricks, they're called derivatives, and they let these big players gamble with huge positions in the market. And so this now, when the stock moves by $1, they're leveraged 100 x. And so if the stock goes up by $1, they can make like 100x1 or if the stock goes down, vice versa. And this derivatives market has gotten really big, like 100 of 1,000,000,000,000 of dollars worth of these weird bets just all over the market. These are the top banks. It's like JPMorgan, Goldman Sachs, their names are over there. And this is in 1,000,000 of dollars. So we're talking $49,000,000,000 That is $49,000,000,000,000 worth of these derivative bets open with just JPMorgan, the biggest bank. But the thing about these derivatives is they all have collateral backing them up. Right? And the thing they use for collateral, they're not like you and me. It's not like they're putting up their car for collateral. They're putting up their other assets. So in over here, they're gonna be trading these assets on that collateral. And over here, they're trading the collateral on these assets. And so the whole market is now tied together by all these big financial institutions trading 1,000,000,000,000 of dollars worth of stocks that they don't actually have on leverage that's based on collateral that they're trading for 1,000,000,000,000 of dollars worth of stock over there. You see what I mean? So, like, if they fuck this one up, then that one gets fucked. And there's all these dudes doing this, like, kinda criminal shorting businesses out of existence scheme in the market in kinda in secret. And they've been targeting GameStop for years now. Ever since 2014, the stock was on this endless ramp down. They were short selling it. While they had infiltrated it and were mismanaging the company from the inside out, Amazon was licking its lips, ready to take over the video game online industry, and the people doing all this short selling also have all these other crazy bets open all over the market. And if any of them go wrong, a whole lot of things go wrong. And then out of nowhere this random dude that would like live stream to 4 people about his investment thesis noticed that GameStop had a lot of short sellers, and it wasn't necessarily a bad company. In fact, it had a future if it turned around. And And then this really savvy businessman came and took over the company and started turning it around. And he kicked out all the bad people that had been trying to mismanage it to death. And suddenly, all the people that had just spent years years short selling millions and millions of shares and all those loans were still open because they were expecting it to go to 0 and they wouldn't have to pay them back, suddenly, the price is going up, and they're all in trouble. Because the thing is, when the price goes up and one of the other people that's short selling the company gets scared and closes out their trades, they have to buy all those shares back to get out of that. Right? Because they borrowed and sold, so now I have to buy and give them back. But all that buying makes the price go up even higher. And there were a lot of people short selling this thing. And in fact, they had short sold it so much that they couldn't afford to buy it all back once the price started going up that high. I mean it was down to like 50¢ and they were opening short sales at 50¢. Today, we're at what? $60 times 1,000,000 and 1,000,000 and 1,000,000 of shares that you have to buy back. Each one will make the price go up, and the whole stock market is tied together by all these crazy financial derivatives, and everyone's balance sheets are actually kinda sketchy in the first place. Yeah. And we all realized that all we have to do is buy the shares and just hold on to them because these guys need to buy them from us in order to close their trades out. Whoopsies. And you know the more we thought about it the more we realized, no I don't really want to sell. Fuck you. So then they tried to trick us into thinking that they had already closed their positions and it was all over. And we were like, I'm pretty sure you're lying dude. So we just held on for years and it turns out we were right. Shorts never closed and now we've all got the shares that they need in order to close. And you know, I still don't wanna sell. Fuck you.
_JamesAlmeida
Posted - May 15, 2024 at 3:47 AM
Saved - May 18, 2024 at 4:18 AM

@_JamesAlmeida - James Almeida 🌐

@TheRoaringKitty Great explanation for those wondering why $GME https://t.co/BeIiQy7bxb

Video Transcript AI Summary
A detailed explanation of the GameStop situation is provided, focusing on short selling, market manipulation, and the impact on financial institutions. The speaker highlights how a group of investors targeted GameStop for short selling, but a turnaround in the company led to a surge in its stock price, causing trouble for short sellers. The strategy of holding onto shares to force short sellers to buy them back is discussed, leading to a standoff between investors and financial institutions. The speaker expresses a refusal to sell their shares.
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Full Transcript
Speaker 0: So this homey said, I can't believe this GameStop thing is still going on. Can someone explain this to me? I love Ian and everything he stands for, but I literally have no idea what this is about or how one stock could have any real effect on impacting ultra wealthy people. I'm down to help. I just need to understand what's going on. I got you, Matt. I'm gonna try to put it all into one video right now. I've made lots of videos about pieces of this, but I'm gonna try to, like, actually explain the real thesis of what's going on and why GameStop very well could affect the entire market, bring down corrupt financial institutions on a big scale. Yeah. I gotta put my hair up for this one. Okay. Don't get scared of charts. We're gonna keep it really simple. When you buy stocks normally, you're buying at a lower price and you're hoping it goes up so you can sell it and make some money. Right? Well, there's no rule in the stock market that says you're not allowed to, like, borrow something from someone. Right? So you're allowed to borrow shares from your homie. And if you borrow something, you're allowed to do what you want with it. Right? Like, I can borrow some shares and then sell them on the market right now. I just have to return them later to make sure that homie gets his shares back. Right? So you're allowed to do this thing called short selling where you borrow some shares from whoever right now, and you sell them at the market right now hoping actually the price will go down, and then later you'll buy some and return them to your homie. And you actually make money because you return them for less money than you actually made when you sold them in the first place. So short selling is this thing where you can bet the market will go down, and it's like taking out a loan. And when the market goes down, then you close out the loan and you make some money. You have to pay a little interest to keep that loan open, but you can make a lot of money doing that, especially if you see a company that's, like, obviously gonna die because it's a failing business model and you wanna make some money while it dies. But you want to be really careful because if you have all these loans open and you're paying interest to keep your loans open, you're hoping the price goes down, but then it starts to go up a lot, you could lose a lot of money because you'd have to buy them all back at a higher price to pay back your loan and you had to pay interest to keep your loan open and prices can go up infinitely theoretically. So short selling is pretty dangerous and everyone knows that. And back in the nineties, all these rich people like at Bain Capital, like Mitt Romney, they realized that they can actually take companies down from the inside and basically loot a company from the inside, take all its money, give it to them and their buddies, the shareholders, and then bankrupt it and leave, and there's not really any consequences. You just buy into the company, buy a bunch of shares, get yourself on the board, take it over, start hiring people that'll do what you want, mismanage it, do a bunch of buybacks so the money gets paid back out to you and the shareholder buddies, and you can really just mismanage the company into the ground and basically loot it for all it's worth. And when it goes bankrupt, it's like, oh, well, whoopsies. It was destined to fail. We'll just move on to the next company. Whatever. My mistake. And they made 1,000,000,000 of dollars doing this to Toys R Us, and everyone else was looking around like, damn, that was a pretty solid strategy, Bain Capital. Maybe we could do that to some other companies. And this was just after the dotcom bubble happened. And so there's this whole Internet thing. Amazon was on the rise, and everyone kind of realized, like, you know, there's all these retail stores out there that are probably in big trouble, like Blockbuster and Sears and GameStop, you know, companies that are bound to fail. So why don't we make them fail faster and profit off of that? Plus, it turns out that these dudes that work at places like Bain Capital that can take these places down from the inside out, turns out they have a lot of friends in the market that like to short sell. And the thing about supply and demand is when I'm borrowing, like, 1,000 and 1,000 and 1,000 of shares and selling them into the market right now, all that selling actually makes the price of the stock go down because, like, when everyone's selling something, it gets valued less. But when everyone wants to buy something, the value goes up. Right? So short selling actually makes a stock's price go down. And these guys realize that, like, you know, you like to make money when stocks go down, and I like to make money when companies get destroyed. And when we do those both at the same time, everybody wins, except the company, of course. And then it turned out they were like, hey. We both know a lot of people in the mainstream media that like to report on failing companies. You know, the kinds of reports that make investors scared and make them wanna sell a stock. And they realized they kinda had the dream team for bankrupting companies and they could all make money on the way down and no one would ever stop them because it's kind of legal. And it actually started to work so well that they started to get really greedy and they started to naked short sell which means like no one's checking if we're even borrowing these shares that we're borrowing in order to in order to short sell. So why even borrow them? We can just short sell shares and say we borrow them and the pan company is gonna go bankrupt anyways and when it does go bankrupt, we don't even need to pay that loan back because there's no shares to give back. They're gone. And fun fact, it's all tax free money too because there's no company to the shares are gone. Free money. So some of them got really greedy and started selling without even borrowing the shares in the 1st place. But we'll come back to that in just a second. Because the other thing that's important to realize about the stock market is it's like this big casino game now. So it's not like the big boys aren't just playing with, like, a share of a company. They're playing with these things that are called derivatives, which is like leveraging your assets to take out loans to, like, make big plays, big gambles. So they use all these special kinds of contracts where, like, they put up collateral in order for their bank or whoever to let them trade on a whole bunch of extra money they don't really have, but they've got collateral. So if it starts to go sideways, the bank can just take their collateral and it's all safe. But, like, this way, I can trade with 100 times the money of what I actually have. It's called leverage. And all these different tricks, they're called derivatives, and they let these big players gamble with huge positions in the market. And so this now, when the stock moves by $1, they're leveraged 100 x. And so if the stock goes up by $1, they can make like 100x1 or if the stock goes down, vice versa. And this derivatives market has gotten really big, like 100 of 1,000,000,000,000 of dollars worth of these weird bets just all over the market. These are the top banks. It's like JPMorgan, Goldman Sachs, their names are over there. And this is in 1,000,000 of dollars. So we're talking $49,000,000,000 That is $49,000,000,000,000 worth of these derivative bets open with just JPMorgan, the biggest bank. But the thing about these derivatives is they all have collateral backing them up. Right? And the thing they use for collateral, they're not like you and me. It's not like they're putting up their car for collateral. They're putting up their other assets. So in over here, they're gonna be trading these assets on that collateral. And over here, they're trading the collateral on these assets. And so the whole market is now tied together by all these big financial institutions trading 1,000,000,000,000 of dollars worth of stocks that they don't actually have on leverage that's based on collateral that they're trading for 1,000,000,000,000 of dollars worth of stock over there. You see what I mean? So, like, if they fuck this one up, then that one gets fucked. And there's all these dudes doing this, like, kinda criminal shorting businesses out of existence scheme in the market in kinda in secret. And they've been targeting GameStop for years now. Ever since 2014, the stock was on this endless ramp down. They were short selling it. While they had infiltrated it and were mismanaging the company from the inside out, Amazon was licking its lips, ready to take over the video game online industry, and the people doing all this short selling also have all these other crazy bets open all over the market. And if any of them go wrong, a whole lot of things go wrong. And then out of nowhere this random dude that would like live stream to 4 people about his investment thesis noticed that GameStop had a lot of short sellers, and it wasn't necessarily a bad company. In fact, it had a future if it turned around. And And then this really savvy businessman came and took over the company and started turning it around. And he kicked out all the bad people that had been trying to mismanage it to death. And suddenly, all the people that had just spent years years short selling millions and millions of shares and all those loans were still open because they were expecting it to go to 0 and they wouldn't have to pay them back, suddenly, the price is going up, and they're all in trouble. Because the thing is, when the price goes up and one of the other people that's short selling the company gets scared and closes out their trades, they have to buy all those shares back to get out of that. Right? Because they borrowed and sold, so now I have to buy and give them back. But all that buying makes the price go up even higher. And there were a lot of people short selling this thing. And in fact, they had short sold it so much that they couldn't afford to buy it all back once the price started going up that high. I mean it was down to like 50¢ and they were opening short sales at 50¢. Today, we're at what? $60 times 1,000,000 and 1,000,000 and 1,000,000 of shares that you have to buy back. Each one will make the price go up, and the whole stock market is tied together by all these crazy financial derivatives, and everyone's balance sheets are actually kinda sketchy in the first place. Yeah. And we all realized that all we have to do is buy the shares and just hold on to them because these guys need to buy them from us in order to close their trades out. Whoopsies. And you know the more we thought about it the more we realized, no I don't really want to sell. Fuck you. So then they tried to trick us into thinking that they had already closed their positions and it was all over. And we were like, I'm pretty sure you're lying dude. So we just held on for years and it turns out we were right. Shorts never closed and now we've all got the shares that they need in order to close. And you know, I still don't wanna sell. Fuck you.
ColonelTowner
Posted - May 15, 2024 at 1:26 PM
Saved - May 15, 2024 at 4:14 PM
reSee.it AI Summary
The posts discuss how business channels often portray individual investors, like the GameStop buyers, as the "bad guys" disrupting the market. This is compared to how the West labeled nationalists as communists when they resisted Western control over their resources. The posts also mention similarities between the strategy of destroying companies from within and the savings and loans crash. The same individuals involved in these events were allegedly connected to CIA front banks like Nugen Hand, BCCI, and Castle Bank, with mentions of Operation Gladio and Paul Helliwell. #OperationGladio

@ColonelTowner - ColonelTowner-Watkins

Everyone needs to understand this. What’s interesting to me about this is on business channels they always point to the Ian’s as the bad guys destroying or monkeying with the market with their “meme” stocks. Its sound eerily familiar. When the nationalists ignore the west and their imperialistic grabbing and controlling of their countries resources, the west called them all communists. Now the money controllers are calling the GameStop BUYERS communists destroying their system. Also, fun fact: when you listen to Ian talk about destroying the companies from the inside out…that perfectly describes the savings and loans crash. These same ppl were on the boards, they used black funds from the Operation Gladio drug sales, fractional learning with no collateral to launder the money to themselves. Crash the bank. Rinse repeat. Same ppl. They did it to all the CIA front banks like Nugen Hand, BCCI and Castle Bank. Paul Helliwell was involved in much of it. #OperationGladio

@Cancelcloco - Ian Carroll

. @slave_2_liberty I got you homie- Here’s an explanation of the actual market wide criminal conspiracy that GameStop exposed and how and why short sellers could actually blow up the entire global economy. Cameos by @blockbuster and @ToysRUs No exaggeration. https://t.co/RCmZZ3emCM

Video Transcript AI Summary
This video explains how short selling works in the stock market, focusing on GameStop as an example. It discusses how big players manipulate failing companies for profit, leading to a risky situation with derivatives and leveraged bets. The recent GameStop situation involves short sellers facing losses as the stock price rises, causing a ripple effect in the market. Retail investors have held onto their shares, refusing to sell and forcing short sellers to cover their positions. This has disrupted the market and highlighted the power of collective action against financial manipulation.
AI Similar Videos
Full Transcript
Speaker 0: So this homey said, I can't believe this GameStop thing is still going on. Can someone explain this to me? I love Ian and everything he stands for, but I literally have no idea what this is about or how one stock could have any real effect on impacting ultra wealthy people. I'm down to help. I just need to understand what's going on. I got you, Matt. I'm gonna try to put it all into one video right now. I've made lots of videos about pieces of this, but I'm gonna try to, like, actually explain the real thesis of what's going on and why GameStop very well could affect the entire market, bring down corrupt financial institutions on a big scale. Yeah. I gotta put my hair up for this one. Okay. Don't get scared of charts. We're gonna keep it really simple. When you buy stocks normally, you're buying at a lower price and you're hoping it goes up so you can sell it and make some money. Right? Well, there's no rule in the stock market that says you're not allowed to, like, borrow something from someone. Right? So you're allowed to borrow shares from your homie. And if you borrow something, you're allowed to do what you want with it. Right? Like, I can borrow some shares and then sell them on the market right now. I just have to return them later to make sure that homie gets his shares back. Right? So you're allowed to do this thing called short selling where you borrow some shares from whoever right now, and you sell them at the market right now hoping actually the price will go down, and then later you'll buy some and return them to your homie. And you actually make money because you return them for less money than you actually made when you sold them in the first place. So short selling is this thing where you can bet the market will go down, and it's like taking out a loan. And when the market goes down, then you close out the loan and you make some money. You have to pay a little interest to keep that loan open, but you can make a lot of money doing that, especially if you see a company that's, like, obviously gonna die because it's a failing business model and you wanna make some money while it dies. But you want to be really careful because if you have all these loans open and you're paying interest to keep your loans open, you're hoping the price goes down, but then it starts to go up a lot, you could lose a lot of money because you'd have to buy them all back at a higher price to pay back your loan and you had to pay interest to keep your loan open and prices can go up infinitely theoretically. So short selling is pretty dangerous and everyone knows that. And back in the nineties, all these rich people like at Bain Capital, like Mitt Romney, they realized that they can actually take companies down from the inside and basically loot a company from the inside, take all its money, give it to them and their buddies, the shareholders, and then bankrupt it and leave, and there's not really any consequences. You just buy into the company, buy a bunch of shares, get yourself on the board, take it over, start hiring people that'll do what you want, mismanage it, do a bunch of buybacks so the money gets paid back out to you and the shareholder buddies, and you can really just mismanage the company into the ground and basically loot it for all it's worth. And when it goes bankrupt, it's like, oh, well, whoopsies. It was destined to fail. We'll just move on to the next company. Whatever. My mistake. And they made 1,000,000,000 of dollars doing this to Toys R Us, and everyone else was looking around like, damn, that was a pretty solid strategy, Bain Capital. Maybe we could do that to some other companies. And this was just after the dotcom bubble happened. And so there's this whole Internet thing. Amazon was on the rise, and everyone kind of realized, like, you know, there's all these retail stores out there that are probably in big trouble, like Blockbuster and Sears and GameStop, you know, companies that are bound to fail. So why don't we make them fail faster and profit off of that? Plus, it turns out that these dudes that work at places like Bain Capital that can take these places down from the inside out, turns out they have a lot of friends in the market that like to short sell. And the thing about supply and demand is when I'm borrowing, like, 1,000 and 1,000 and 1,000 of shares and selling them into the market right now, all that selling actually makes the price of the stock go down because, like, when everyone's selling something, it gets valued less. But when everyone wants to buy something, the value goes up. Right? So short selling actually makes a stock's price go down. And these guys realize that, like, you know, you like to make money when stocks go down, and I like to make money when companies get destroyed. And when we do those both at the same time, everybody wins, except the company, of course. And then it turned out they were like, hey. We both know a lot of people in the mainstream media that like to report on failing companies. You know, the kinds of reports that make investors scared and make them wanna sell a stock. And they realized they kinda had the dream team for bankrupting companies and they could all make money on the way down and no one would ever stop them because it's kind of legal. And it actually started to work so well that they started to get really greedy and they started to naked short sell which means like no one's checking if we're even borrowing these shares that we're borrowing in order to in order to short sell. So why even borrow them? We can just short sell shares and say we borrow them and the pan company is gonna go bankrupt anyways and when it does go bankrupt, we don't even need to pay that loan back because there's no shares to give back. They're gone. And fun fact, it's all tax free money too because there's no company to the shares are gone. Free money. So some of them got really greedy and started selling without even borrowing the shares in the 1st place. But we'll come back to that in just a second. Because the other thing that's important to realize about the stock market is it's like this big casino game now. So it's not like the big boys aren't just playing with, like, a share of a company. They're playing with these things that are called derivatives, which is like leveraging your assets to take out loans to, like, make big plays, big gambles. So they use all these special kinds of contracts where, like, they put up collateral in order for their bank or whoever to let them trade on a whole bunch of extra money they don't really have, but they've got collateral. So if it starts to go sideways, the bank can just take their collateral and it's all safe. But, like, this way, I can trade with 100 times the money of what I actually have. It's called leverage. And all these different tricks, they're called derivatives, and they let these big players gamble with huge positions in the market. And so this now, when the stock moves by $1, they're leveraged 100 x. And so if the stock goes up by $1, they can make like 100x1 or if the stock goes down, vice versa. And this derivatives market has gotten really big, like 100 of 1,000,000,000,000 of dollars worth of these weird bets just all over the market. These are the top banks. It's like JPMorgan, Goldman Sachs, their names are over there. And this is in 1,000,000 of dollars. So we're talking $49,000,000,000 That is $49,000,000,000,000 worth of these derivative bets open with just JPMorgan, the biggest bank. But the thing about these derivatives is they all have collateral backing them up. Right? And the thing they use for collateral, they're not like you and me. It's not like they're putting up their car for collateral. They're putting up their other assets. So in over here, they're gonna be trading these assets on that collateral. And over here, they're trading the collateral on these assets. And so the whole market is now tied together by all these big financial institutions trading 1,000,000,000,000 of dollars worth of stocks that they don't actually have on leverage that's based on collateral that they're trading for 1,000,000,000,000 of dollars worth of stock over there. You see what I mean? So, like, if they fuck this one up, then that one gets fucked. And there's all these dudes doing this, like, kinda criminal shorting businesses out of existence scheme in the market in kinda in secret. And they've been targeting GameStop for years now. Ever since 2014, the stock was on this endless ramp down. They were short selling it. While they had infiltrated it and were mismanaging the company from the inside out, Amazon was licking its lips, ready to take over the video game online industry, and the people doing all this short selling also have all these other crazy bets open all over the market. And if any of them go wrong, a whole lot of things go wrong. And then out of nowhere this random dude that would like live stream to 4 people about his investment thesis noticed that GameStop had a lot of short sellers, and it wasn't necessarily a bad company. In fact, it had a future if it turned around. And And then this really savvy businessman came and took over the company and started turning it around. And he kicked out all the bad people that had been trying to mismanage it to death. And suddenly, all the people that had just spent years years short selling millions and millions of shares and all those loans were still open because they were expecting it to go to 0 and they wouldn't have to pay them back, suddenly, the price is going up, and they're all in trouble. Because the thing is, when the price goes up and one of the other people that's short selling the company gets scared and closes out their trades, they have to buy all those shares back to get out of that. Right? Because they borrowed and sold, so now I have to buy and give them back. But all that buying makes the price go up even higher. And there were a lot of people short selling this thing. And in fact, they had short sold it so much that they couldn't afford to buy it all back once the price started going up that high. I mean it was down to like 50¢ and they were opening short sales at 50¢. Today, we're at what? $60 times 1,000,000 and 1,000,000 and 1,000,000 of shares that you have to buy back. Each one will make the price go up, and the whole stock market is tied together by all these crazy financial derivatives, and everyone's balance sheets are actually kinda sketchy in the first place. Yeah. And we all realized that all we have to do is buy the shares and just hold on to them because these guys need to buy them from us in order to close their trades out. Whoopsies. And you know the more we thought about it the more we realized, no I don't really want to sell. Fuck you. So then they tried to trick us into thinking that they had already closed their positions and it was all over. And we were like, I'm pretty sure you're lying dude. So we just held on for years and it turns out we were right. Shorts never closed and now we've all got the shares that they need in order to close. And you know, I still don't wanna sell. Fuck you.
0x3ny
Posted - May 27, 2024 at 1:21 AM
Saved - May 27, 2024 at 6:17 PM
reSee.it AI Summary
During the volatile period in January 2021, margin requirements for short selling GameStop (GME) stock were significantly increased. Initial margin requirements were raised to 80% and then 100%, while maintenance margin requirements started at 80% and were later raised to 100%. Temporary trading restrictions were imposed by broker-dealers like Robinhood due to the extraordinary volatility and increased deposit requirements. The cost to borrow GME shares was exceptionally high, exceeding 100% at times in 2020 and around 25% in January 2021. GameStop had a high short interest ratio, surpassing 100% of the float.

@0x3ny - 0x3ny

The specific margin requirements for short selling GameStop (GME) stock during the period of high volatility in January 2021 were notably elevated due to the exceptional market conditions. Here's a detailed breakdown based on the SEC report: Short % Margin Requirements for GameStop Initial Margin Requirements:Initially, brokerage firms began increasing both initial and maintenance margin requirements. For example, one broker-dealer increased the initial margin requirement to 80% and then to 100% the following day​​. Maintenance Margin Requirements:Maintenance margin requirements for customer margin accounts holding GME also saw significant increases. These requirements began at 80% and then were raised to 100%​​. Temporary Trading Restrictions:Due to the extraordinary volatility and increased deposit requirements imposed by the National Securities Clearing Corporation (NSCC), several broker-dealers, including Robinhood, restricted trading in GME. These restrictions were reactions to margin calls and capital charges imposed by the NSCC in response to the market volatility​​. Key Points Increased Costs: During the period, the cost to borrow GME shares was exceptionally high, reaching lending fees greater than 100% at some points in 2020 and around 25% in January 2021​​. High Short Interest: GameStop had a notably high short interest ratio, exceeding 100% of the float at its peak. This was due to the same shares being lent multiple times​​. Source - Comments from Chat GPT 4o reviewing this source https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf

tacostacostony
Posted - May 29, 2024 at 4:50 PM
Saved - May 30, 2024 at 4:11 PM
reSee.it AI Summary
My theory on $GME: 1. Ryan Cohen or his proxy pays $500k for @TheRoaringKitty twitter account. 2. Ryan Cohen spends $500k on troll farms to create meme clips and pump the stock. 3. $GME hires a law firm to draft a prospectus with disclaimers and risk factors. 4. @TheRoaringKitty and @stoolpresidente join the conversation. 5. Stock spikes. 6. Gamestop sells $1 billion in stock on the same day as the spike. 7. Gamestop's 10-q shows declining sales and earnings, along with burning $250 million in cash. 8. Ryan knows stock sales are necessary for survival and keeps the FTD short story alive. 9. HODLERS realize they are no match for Ryan Cohen.

@tacostacostony - Tony Miller

Here is my theory on $GME and how it has unfolded: 1. Ryan Cohen or his proxy pays $500k to Keith Gill for @TheRoaringKitty twitter account 2. Ryan Cohen spends $500k for troll farms to make meme clips like old WSB posts. . The troll farms pump incessantly with charts, FTD claims etc, posts on reddit r/WSB r/GME 3. $GME hires law firm to draft prospectus with many disclaimers and risk factors including investors losing everything, stock sales needed to survive etc 4. @TheRoaringKitty comes to life. @stoolpresidente chimes in 5.. Stock spikes. 6.. Gamestop sells $1 billion in stock just COINCIDENTALLY of course on the same day the stock spikes 7. Gamestop files 10-q showing sales and earnings evaporating. 10-q also shows $GME burned $250 million in cash in 4 months. . Turns out selling games in mall takes longer and costs more than selling to kids traooed on their couch while mommy and daddy work. If Ryan had waited to file offering after earnings it would have shown a shorter runway of days of liquidity remaining. 8. Ryan knows stock sales only way to survive and he knows the FTD short story must be kept alive so cost of troll farms are small price to pay vs taking $1 billion from redditors. It might even be the best business model. 9. After 5 years of holding stock HODLERS realize they are no match for @ryancohen. . They could have just read SEC filings for $BBBY but most don't know what the SEC does. @SEC @CNBC @jimcramer @YahooFinance @Investingcom @GaryGensler

shortdestroyer
Posted - June 4, 2024 at 5:20 PM
Saved - June 5, 2024 at 11:36 PM
reSee.it AI Summary
GameStop's narrative is being manipulated by the media, but there are two important things they're not sharing. Firstly, GameStop went from losing millions to becoming profitable in 2023. Secondly, Ryan Cohen will invest $2 billion in GameStop's transformation. Prior to the rally, GME was heavily shorted and experienced a significant stock price drop. The truth is, they picked the wrong company to short and now they have to face the consequences.

@shortdestroyer - Professor

The narrative of the media is that the price of GameStop has been manipulated but here's the two things they aren't telling you. #1 GameStop went from losing hundreds of millions of dollars per year to net profitability in fiscal year 2023. https://t.co/yk3zcX5FCZ

@shortdestroyer - Professor

#2) In the latest 10k, Gamestop announced "a new phase of transformation" in which Ryan Cohen will invest GameStop's 2 billion dollar portfolio. The Board anticipates that such investments will align the interests of the Company. https://t.co/Q39rw3DAE0

@shortdestroyer - Professor

Prior to the rally, GME was aggressively shorted. In 2023 the stock price fell -70% without any negative news. GameStop just underwent the greatest turnaround story of all time, and is right at the pivot point of becoming something great. https://t.co/xJM9zuHOnw

@shortdestroyer - Professor

They want to paint this narrative of "price manipulation" but they will never tell you the full story. The true story is they picked the wrong company to short and they didn't manage risk. It's that simple. Shorts were wrong. Now it's time to pay up.

shortdestroyer
Posted - June 4, 2024 at 6:46 PM
Saved - June 5, 2024 at 11:37 PM
reSee.it AI Summary
In 2021 and 2022, there were several concerning events surrounding $GME. These include a misinformation attack by Citron Research, high short interest, Wall Street suspending buying but allowing selling, a media campaign against GameStop, Robinhood CEO lying to Congress, a fake hedge fund warning investors, a fire at a secure financial document storage facility, securities fraud by the DTCC, and the SEC mocking retail investors. Glitches and further incidents in 2023-2024 are also mentioned.

@shortdestroyer - Professor

Dear SEC @SECGov , I heard you were concerned about the manipulation surrounding $GME. Here’s a list to make your investigation easier, we'll start with 2021 and 2022:

@shortdestroyer - Professor

January 19-20, 2021: Citron launches a misinformation attack against GameStop promising a report that proves why “GME will fall back to $20 soon”. Citron Research cancels the planned report at the last minute. Indicating everything was just a scare tactic. https://t.co/YVW52xzPYU

@shortdestroyer - Professor

January 22, 2021: GME’s short interest stands at around 140%, meaning 40% more shares had been sold short than actually existed on the open market.

@shortdestroyer - Professor

January 28, 2021: Wall Street suspends the buying of GameStop but continues to allow sell orders. https://t.co/r0XnAzsp1J

@shortdestroyer - Professor

February 1, 2021 The start of a massive news article campaign telling people to “Forget GameStop”. This media attack is still ongoing in 2024 https://t.co/v8M0cKpf62

@shortdestroyer - Professor

February 18, 2021: Robinhood CEO Vlad Tenev lies to Congress about what happened when they restricted Gamestop stock from trading. https://t.co/PT4Liz41e6

@shortdestroyer - Professor

May 17, 2021: Fake hedge fund Glacier Capital publishes letter warning GameStop investors that the stock will fall. https://t.co/enqrfaLJd1

@shortdestroyer - Professor

February 4, 2022: Secure Financial Document storage facility catches fire. https://t.co/4ZttjNwUsh

@shortdestroyer - Professor

July 21, 2022: The DTCC commits securities fraud by splitting GME shares into four, rather than issue dividend shares as per the corporate action described in GameStop's 8-K filing.

@shortdestroyer - Professor

May 31, 2022: The SEC creates and uploads a video mocking retail investors for investing in GameStop. https://t.co/vSj3CkYXSt

@shortdestroyer - Professor

Rest 2022: Glitches, so many glitches. https://t.co/o0V8zfQaDO

@shortdestroyer - Professor

Guys feel free to add anything important that I missed. 2023-2024 list of fuckery is extensive as well. Compiling everything together.

peruvian_bull
Posted - June 9, 2024 at 8:20 PM
Saved - June 9, 2024 at 9:09 PM

@peruvian_bull - Peruvian Bull

"but $GME didn't break the stock market" fractional shares were getting filled at $5K in the 30s before the buy button shut off https://t.co/7Rf5uOk4QY

peruvian_bull
Posted - June 10, 2024 at 5:32 PM
Saved - June 10, 2024 at 10:03 PM

@peruvian_bull - Peruvian Bull

Don't forget that $GME almost collapsed the financial system. https://t.co/Xdnnbv8vKF

ThrillaRilla369
Posted - October 28, 2024 at 3:12 AM
Saved - October 29, 2024 at 12:08 AM

@ThrillaRilla369 - Thrilla the Gorilla

Here’s an explanation of the actual market wide criminal conspiracy that GameStop exposed and how and why short sellers could actually blow up the entire global economy. @Cancelcloco https://t.co/FSgLSnaLlw

JustusBronck
Posted - December 15, 2024 at 1:41 AM
Saved - December 15, 2024 at 11:54 PM

@JustusBronck - JUST a BR⭕️

Then he presses the button that displays the volume symbol. This, in turn, could indicate “full (trading) volume”. During the #GME short squeeze, volume surged to extreme levels—trading at "full volume". So this indicates intense interest in the stock on Januar 9. 3/4 https://t.co/t9I6X9KJdS

DarioCpx
Posted - January 2, 2025 at 6:37 AM
Saved - January 2, 2025 at 8:39 PM

@DarioCpx - JustDario 🏊‍♂️

13 Jan 2021 - In the pics what was happening I believe CS will be soon forced to deliver the $GME shares on the $GME short positions they helped Archegos and fellow HF to build because the risk-netting OTC derivatives they put in place that day will be ultimately due in 11 days https://t.co/dGWZHp9ajr

@DarioCpx - JustDario 🏊‍♂️

Monday 13 January 2025

DecentBackup
Posted - February 4, 2025 at 5:02 PM
Saved - February 4, 2025 at 6:05 PM
reSee.it AI Summary
I’ve been following the unfolding situation around NJ Governor Phil Murphy, who is reportedly under investigation for his alleged involvement in various scandals, including nursing home policies during COVID and market manipulations tied to major financial players. The connections to figures like Steven Cohen and the broader implications involving entities like Goldman Sachs and Palantir are striking. It seems there’s a web of collusion that could lead to serious consequences for many involved, and the narrative suggests a deep intertwining of politics, finance, and alleged misconduct.

@DecentBackup - BackupDecentFiJC

👺NJ GOVERNOR PHIL MURPHY: Wait until you find out he’s gonna be under investigation his complicity in the “nursing home COVID/Remdesivir murders”, in collusion with the TISCH family (UJA/Loews Corp)… *And the ROBIN HOOD/GAMESTOP/AMC market manipulation and illegal “coordinated naked short protection” fraud scandal with CITADEL, MELVIN CAPITAL, ROBIN HOOD, POINT72 (IQT/CIA)… *And the recent HELICOPTER/PLANE collision involving the GAMESTOP/CHEWY/ICAHN/DUKE KUNSHAN/APOLLO/ATHORA/CASINO fa***ts. Because he’s in bed with them via GOTHAM FC. (Yep, it’s GOTHAM again.🤦🏻‍♂️)

@amuse - @amuse

CLOSED BORDER: Border Czar Tom Homan explains that NJ Governor Phil Murphy is now under federal investigation for harboring a fugitive. https://t.co/6V03PpJC6J

Video Transcript AI Summary
There's someone in our community whose immigration status is unresolved. We decided to let her stay in our house above the garage, making it difficult for authorities to intervene. I took note of this situation. If it turns out that he is knowingly harboring an illegal alien, it would violate Title 8 United States Code 1324, and we will pursue prosecution. He might be bluffing, but if he's not, we will address it accordingly.
AI Similar Videos
Full Transcript
Speaker 0: Don't want to get into too much detail, but there's someone in our broader universe whose immigration status is not yet at the point that they are trying to get it to. And we said, you know what, let's have her live at our house above our garage and good luck to the feds coming in to try to get her. Speaker 1: I got note of it. We'll let it go. We'll look into it. And if he's knowingly, knowingly harboring concealing an illegal alien, that's a violation of Title 8 United States Code 13/24, I will seek prosecution or the secretary will seek prosecution. So maybe he's bluffing. If he's not, we'll deal with that.

@DecentBackup - BackupDecentFiJC

I knew I’d be glad I decided to write THIS thread. You won’t BELIEVE how closely it’s all tied in. ✅STEVEN A. COHEN (Co-Owner of the NY Mets with Steven Temares) I mean, just LOOK at this goofy fa***t. And thief. And traitor. And JEW. *Steven Cohen literally uses CIA (In-Q-Tel) AI/ML/QC tech at Point72 to trade, manipulate markets and front run retail at GLOBAL SCALE. It’s how he and Ken Griffin were able to “bail out” Gabe Plotkin (“Melvin Capital” Jew) from losing his ass (and theirs) on his retarded (and should-be ILLEGAL) naked shorts bets on ROBIN HOOD.

@DecentBackup - BackupDecentFiJC

GAMESTOP: Ryan COHEN, Chairman & CEO 💥💥💥💥💥💥💥💥💥💥💥💥💥💥💥 2011: Founded CHEWY at age 25. 2013: Went 0/100 raising VC, then got $15,000,000 from VOLITION CAPITAL. 2016: BLACKROCK & T. ROWE PRICE (Gensler’s twin) invest and CHEWY is suddenly #1 PET RETAILER on EARTH?! https://t.co/0jTpUlaUnS

@DecentBackup - BackupDecentFiJC

Here’s a quick teleport to the relevant posts.🫡

@DecentBackup - BackupDecentFiJC

👺PRO TIP: Watch out for JAMES NELSON and CHEWY (GameStop, BC Partners) here, folks. *Boeing Private *Orbit Aviation *BC Partners *MGM Resorts (Athora/Apollo) *Caesar’s Entertainment (Athora/Apollo) *Icahn Enterprises (Krongard/CIA/IQT/Apollo) Yep, it’s Mossad, GCHQ and CIA (IQT) again.

@DecentBackup - BackupDecentFiJC

This probably won’t help NJ GOVERNOR PHIL MURPHY too much, either. Get fucked, mutant.✌️

@DecentBackup - BackupDecentFiJC

CRISWELL FEMA ADMIN *NYC COVID RESPONSE Is her PARTNER: ✅PAT MURPHY COMMISSIONER NYS Div Homeland Sec & Emerg Svcs For NYGs: Nursing Home Killer CUOMO Goldman Sachs/China-Installed HOCHUL Is PAT related to NJG: ✅PHIL MURPHY NURSING HOME KILLER GOLDMAN SACHS ASIA PRESIDENT https://t.co/Xv6UvmVwBk

@DecentBackup - BackupDecentFiJC

Here’s a bit more context, just in case you need it.

@DecentBackup - BackupDecentFiJC

We now have enough to put everyone here in prison for multiple life sentences.✌️ TISCH: Remdesivir/Vaccines/Hospitals/Hotez/Gotham/UJA MURPHY: Goldman Sachs Asia/Gotham *NJ GOV Murphy (TISCH/LOEWS/HOTEZ) *NY GOV Cuomo (APOLLO/UJA) NY GOV Hochul (SPEYER/LOEB) *Nursing Home: 💀 https://t.co/ermniKeqxc

@DecentBackup - BackupDecentFiJC

👺COVID MURDERS/PALANTIR: America would be a much safer place if it paid me 10% of what it pays Palantir in government contracts each year, and then just returned the other 90% to the taxpayers themselves.

@DecentBackup - BackupDecentFiJC

PALANTIR: I can guarantee you that ANY future $PLTR price target above “$0.00” is overvalued, @alc2022. And yes, the financials will be hard to recognize — because there won’t fucking be any financials to speak of 2 years from now. Now ask me how I know I’m right. https://t.co/5zUhWwb1Py

MorgenHatton
Posted - August 1, 2025 at 4:53 PM
Saved - August 2, 2025 at 9:53 PM
reSee.it AI Summary
GameStop's saga reveals a deep financial manipulation, where short interest exceeded the float, leading to massive fails-to-deliver and synthetic shares. Despite overwhelming evidence of naked shorting and regulatory inaction, retail investors fought back by registering shares directly, locking away over 76 million. The system remains opaque, with trades shifting to dark pools and derivatives obscuring true exposure. Upcoming regulatory changes could expose these practices, but the risk of systemic collapse looms if shorts must reconcile. The fight for accountability continues.

@MorgenHatton - MD

🚨 THEY DIDN’T JUST SHORT GAMESTOP. THEY COUNTERFEITED THE ENTIRE MARKET. This is the forensic breakdown Wall Street didn’t want you to see. Here’s how GameStop exposed the biggest financial cover-up of our time and why the system still hasn’t recovered. Like and repost before this vanishes. They don’t want this thread reaching the masses. Too much truth. Too much proof. Let the world see what they tried to bury. 📢🧾 $GME It’s time to lay it all out. Buckle up. This is the thread. 🧵👇

@MorgenHatton - MD

Start here: In Jan 2021, GameStop’s short interest hit 140% of the float. That’s not supposed to be possible. It means more shares were shorted than actually existed. This wasn’t a glitch.

@MorgenHatton - MD

Enter: Fails-to-Deliver (FTDs) When a seller fails to deliver shares after a sale, it’s recorded as an FTD. GME had millions of these daily during the squeeze. That’s not speculation. That’s official data proof of massive naked shorting.

@MorgenHatton - MD

Naked shorting = share counterfeiting. Selling shares without borrowing them and not delivering means you’re injecting fake supply into the market. GameStop stayed on the NYSE threshold list for 39 straight days. It should’ve triggered forced buy-ins. It didn’t. Why?

@MorgenHatton - MD

Because enforcement was suspended. Because the real squeeze hadn’t just begun it was working. Retail wasn’t selling. Price was exploding. Shorts were cornered. That’s when they pulled the plug.

@MorgenHatton - MD

On Jan 28, 2021, brokers like Robinhood disabled BUY orders for GameStop. You could sell, but you couldn’t buy. It killed the momentum. The price collapsed. FTDs vanished. The short sellers? They got out. Or so it seemed.

@MorgenHatton - MD

But the trades didn’t stop. They just moved to the shadows. Over 70% of GameStop trades shifted to dark pools and off-exchange venues. Internalized, fragmented, hidden. And those trades were led by the usual suspects: Citadel. Virtu. Jane Street.

@MorgenHatton - MD

Example: Citadel traded 252 million GME shares OTC in one quarter while holding only ~200,000 shares. They shorted supply into the market they themselves controlled. They were exempt from borrow rules. A license to print synthetic shares.

@MorgenHatton - MD

Post-squeeze, something strange happened: Reported short interest plummeted. FTDs dropped. But put option exposure exploded to the point that puts covered 300% of GME’s float. The short didn’t go away. It just moved to derivatives.

@MorgenHatton - MD

Here’s how they hid it: 🔹 Deep ITM calls 🔹 Married puts 🔹 Total return swaps 🔹 ETF shorting These instruments created synthetic shorts that don’t show up in public short interest reports. The system obscured its own shadow.

@MorgenHatton - MD

Meanwhile, retail fought back the only way it could: By registering shares directly. DRS removes shares from brokerages locking them from being lent or shorted. To date, over 76 million shares of GME have been DRS’d. That’s >25% of the float untouchable.

@MorgenHatton - MD

Still… 🔸 Short interest remains elevated 🔸 FTDs resurface cyclically 🔸 Reported ownership exceeds float 🔸 Short volume >50% daily Retail now holds. Shorts hide. Price discovery is choked out by synthetic supply.

@MorgenHatton - MD

Here's the breaking point: Imagine if every short had to cover. Every synthetic had to unwind. Every naked position had to buy real shares. The system would fracture. Brokers would default. Firms would collapse. Wall Street would burn 🔥

@MorgenHatton - MD

The regulators? The SEC knew. The DTCC knew. Congress held hearings. But no one forced buy-ins. No one halted the fraud. Instead, they fined Citadel $10,000. Token fines. No accountability.

@MorgenHatton - MD

What do we know? ✅ GME was shorted beyond float ✅ FTDs flooded the market ✅ Synthetic shares were created ✅ Price was suppressed ✅ Derivatives were used to hide exposure ✅ The buy button was removed when it mattered most That’s not a meme. That’s a cover-up.

@MorgenHatton - MD

This wasn’t just about GameStop. It’s a blueprint for how entire markets are manipulated: •Phantom shares •Dark pool rerouting •Payment-for-order-flow conflicts •Regulatory capture The mechanics of control laid bare.

@MorgenHatton - MD

The most dangerous part? It’s still happening. GameStop is the canary in the coal mine. If shorts are ever forced to reconcile If synthetic shares ever have to be delivered the entire system cracks open. They know it. We know it. Tick. Tock. 💥

@MorgenHatton - MD

So will it ever be forced to unwind? Surprisingly… maybe. Because 2025–2026 is a ticking time bomb for the entire market structure. Here’s why 👇

@MorgenHatton - MD

🚨 The Regulatory Reckoning Is Coming There are 3 massive changes on the horizon: 🔹 Rule 13f-2: Institutional short positions (even synthetic) must be disclosed Live by Q4 2025 🔹 CAT Amendments: Will expose market-maker exemptions and short manipulation Due late 2025 🔹 Reg SHO Overhaul Petition: Would mandate pre-borrows, kill naked shorting, and end the MM loophole expected by 2026 If these are enforced? The ghost shares will be cornered.

@MorgenHatton - MD

Imagine what happens when: •They can’t hide synthetic shorts in puts •Every FTD triggers a penalty •Market-makers lose their exemptions •Swaps and dark pool games are exposed •Real delivery is required… It won’t just break the dam. It’ll break the system.

@MorgenHatton - MD

Retail didn’t forget. They logged every FTD. DRS’d every share. Reverse-engineered every loophole. Because we were never just here for a squeeze. We were here for the receipts.

@MorgenHatton - MD

This wasn’t a glitch. It was a leak in the simulation. They sold shares they didn’t own. We bought them. Held them. Locked them away. Now? Every fake share is a ticking time bomb. 💣

@MorgenHatton - MD

🧾 LIKE & REPOST before this vanishes. They don’t want this truth getting out. Too much proof. Too much power. Let the world see what they tried to bury. #GME https://t.co/DNzHe9A0Co

@MorgenHatton - MD

I pushed the button for those of you that don’t know how to. Thanks @elonmusk https://t.co/C7IhbDg6KW

@MorgenHatton - MD

@mib_jay @ryancohen @larryvc Five years. A mountain of data. Zero accountability. At this point, it’s not just inaction it’s institutional protection

@MorgenHatton - MD

@MilesVF_eth @ryancohen @larryvc Exactly. Tokenization puts every share on-chain with real-time ownership and settlement. No naked shorts, no FTDs, no hidden exposure. Once that system goes live, the fraud can’t hide.

@MorgenHatton - MD

@pemamethor @ryancohen @larryvc @SEC The SEC? At best overwhelmed. At worst complicit. They watched it happen. FTDs piled up. Synthetic shares flooded the market. And instead of enforcement, we got silence. The real oversight? Came from retail. Line by line. Share by share. Receipts in hand.

@MorgenHatton - MD

@qbikal @ryancohen @larryvc Always 🙏🏻❤️ We hold, we speak, we expose. Let’s finish the story right. #GME

@MorgenHatton - MD

@Nuts4Music @ryancohen @larryvc Appreciate that. The playbook hasn’t changed just the tools. $HOOD showed their hand in 2021 and anyone still shilling against $GME either wasn’t paying attention… or got paid not to.

@MorgenHatton - MD

Yes, the facilitation of this entire scheme relies on a network of regulatory loopholes, financial instruments and systemic opacity. Here's a breakdown of how they're doing it: 🧩 1. Market Maker Exemption Designated market makers (like Citadel) are allowed to short without a locate under the guise of providing liquidity. This allows them to: •Create synthetic shares on demand •Reset FTD clocks by “rolling” locates •Delay delivery without penalty It’s legal counterfeiting dressed up as “market function.” 📦 2. Fails-to-Deliver (FTDs) as a Settlement Strategy Instead of delivering shares, some participants intentionally fail to deliver using FTDs as a tool to synthetically satisfy settlement obligations. This: •Keeps supply artificially high •Suppresses price pressure •Avoids triggering margin calls or buy-ins And the SEC rarely enforces it unless it’s blatant. ⚖️ 3. Options Abuse & Deep ITM Calls By exercising deep in-the-money call options, market makers can create synthetic long positions without buying real shares. This: •Creates a façade of ownership •Avoids upward price impact •Buys time to manage exposure Used strategically, this suppresses visible demand. 🕳 4. Dark Pools & Off-Exchange Internalization Trades are routed off lit exchanges where price discovery is suppressed. Internalizers can: •Fill retail orders with internal inventory •Never expose real demand to the market •Delay price impact or absorb sell pressure Your buy never hits the real tape. 🔄 5. Swaps, ETFs & Derivatives for Synthetic Exposure They layer hidden exposure through: •Total return swaps •Leveraged ETFs •Basket trades These avoid disclosure rules and sidestep reporting requirements. The short doesn’t show up on official data but the pressure is real. 🛑 6. Regulatory Arbitrage & Rule Delays Rules like Rule 13f-2 and CAT were delayed for years, allowing firms to operate without scrutiny. Even now, full short reporting isn't due until Feb 2026. They've gamed the system longer than most retail has been invested. They’re not just shorting stocks. They’re weaponizing the entire market structure: •Exemptions •Synthetic trades •Off-exchange routing •Disclosure delays •Regulatory inaction The system isn’t broken. It was built this way.

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