Incase you haven't caught up yet, a subreddit with 2 million users decided to Bognadof the Gamespot stock, so much that 3 days ago it closed $40 US dollars, then yesterday it was $75 and just now when the market closed it was $145 US. Gamespot is now worth 10 billion dollars, the first time ever in it's history and Melvin Investment, a hedgefund that was short selling the stock has lost an estimated 6 billion dollars, after receiving a 2.75 billion bailout yesterday from 2 other investment firms. This really is entertaining to watch and is costing someone rich a lot of money.
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Absolutely hilarious. I hope more of this sort of thing happens.
It's funny, but the guy who made $22 million is going to jail. Won't matter that the big timers do the same thing; SEC has enforcement discretion and can just pull a "no reasonable prosecutor" excuse.
Yep.
Why is he going to jail?
I wouldn't be surprised if they try to get him for some sort of "pump and dump" scheme, but the real reason will be bankrupted members of the "club" in a rather unique way that illustrates some of the absurdities of the market.
Yeah, I don't see how they can outlaw it either. What could they possibly do? Make it illegal to convince a large number of people to invest in a stock? Never gonna happen.
rofl
His argument is literally "1%er hedge fund managers can do this, plebs must be stopped."
Man how new are you? Direct linking 4chan baka desu
If anything, the regulatory result will likely be prohibiting naked short selling (short-selling a stock without a standing agreement to borrow an existing share). The brokerages that permitted this knew what they were doing was dangerous, and they did it anyways.
Shades of the junk bond bullshit of the '80s?
Shades of -$20/barrel oil this past spring, for a more topical example.