A Group or Redditors Just Blew Up Two Hedge Funds Over GameStop.

[just444]

How an army of traders on the Reddit forum r/WallStreetBets helped drive a meteoric rise in GameStop’s stock price, forcing it to halt trading multiple times and causing a major headache for the short sellers betting against it: https://t.co/QNNo8s7GkZ
- Vox (@voxdotcom) January 26, 2021
so i don't really understand the whole thing, but the gist

Comments

[jaequeeragenda]

man this year i wanna learn how to invest in stock! but i genuinely don't understand the game yet lol its my 2021 goal though

[helethmiel]

Same. I barely understand btc at this point!

[babs]

imo it's best to approach it as though you're learning a new language, because you literally are. it's english, but nobody fucking learns about hedge funds and shorting just by learning english naturally lmao

luckily, there are a lot of good yt vids out there. if you can find a comic-style tutorial a yt vid with some animation or literally ANYTHING to make it less boring, i'd recommend those. i'm on my phone rn so the will to hunt some of those down to link them here now is weak

[marywebgirl]

If you have an investment plan through work like a 401k just pick an index fund. I have one from an old job that I haven’t put anything into in 4 1/2 years and it’s doubled since then. (My New Years resolution is rolling it over into my current job’s 403b.)

[analievelyn]

I'm so confused but I'm happy that the ULTRA wealthy lost money??

Still so confused tho

[midnitepopcorn]

Say I purchased a camera for $100. I lend it to you. You sell it to another ontder for $100. The camera subsequently goes on sale for half price, so you pay me $50 to buy a new one. You pocket $50.

However, the camera has now sold out and the re-sell price has now gone up to $200. You now have to pay me $200, causing you to lose $100.

The Hedge Fund did this with 140% of the GME stock. Reddit discovered it. Everyone bought shares driving up the price. Hedge Fund now must pay the difference. Hedge Fund can't afford the difference. Hedge Fund gets bailed out. Stock went up higher, wiping out the bail out. If everyone holds, Hedge Fund will be forced to pay for the higher stock price.

[justrachna]

I have to say I appreciate you explaining this in this post. Your explanation is really accessible. Thank you ❤️

[midnitepopcorn]

ohmygoodness thank you <3 I was actually scared that I wasn't explaining things properly! Gotta make sure everyone gets the chance to punch up as well <3

[megalixer]

okay but can I still ride this for at least a little extra beer money? not gonna put my life savings in some reddit fuckery obvs but mama is stuck part-time freelancing at the moment & wouldn't hate making a few hundred bucks on these shenanigans

lmaooooo can you even imagine the crisis meetings going on at the hedge funds. like I would sincerely love to see the younger brooks brothers fucks trying to explain how u/cumgargler69 or w/e is fucking their day up

[ohwutevernvm]

Lol I saw this before but weren’t they screwed over in debt or something to do with investing that much due to this bc GameStop was literally dying into its permanent closures though? I’m even shocked GameFly still exists today lmao.

[xtinkerbellax]

I feel like I see people my age putting tiny bits of money into the stock market on low risk stocks thinking they're going to get rich off of it. Everyone who I know who makes decent money invested in companies that blew up or do it as a full time job basically in retirement. Like I have a coworker whose goal is to make 100,000 this year on her first year investing and it's just a pipe dream in comparison to what she's actually doing.

[madamezuzu]

yeah. robinhood has made investing too attainable. you have to still put in thousands to see any gains. you’re not getting anything from putting less that $1K in. and even them it’s constantly selling and rebuying. it’s not just a one stop get rich.

[sandstorm]

Why do so many use Robin Hood over stash I wonder.

[nutmegdealer]

good question. i use stash and it seems like it's a good choice.