2 hedge funds admit defeat, bail out at huge loss as GameStop share surge hits 1000%

**Backspin** · 30-01-2021, 05:02 AM

Texas AG Issues CIDs To Robinhood, Citadel, Others Over "Shocking Coordination" Between Hedge Funds, Trading Platforms To Halt Trading

The probes and lawsuits are coming.

Texas Attorney General Ken Paxton sent out a Civil Investigative Demand to 13 entities, including Robinhood and Citadel, regarding the "suspension of stock trading and investing" requiring higher margin reserves for trading certain companies and suspending chat platform activity.

In addition to public statements and internal documents, the CIDs request copies of all terms of service, policies related to content control and moderation, and communications between platforms and moderators of chat servers, including decisions to limit, control, or prevent access to the Discord r/WallStreetBets server.

**Klondyke** · 30-01-2021, 09:46 AM

^Las Vegas economy...

The communists (with their planned economy) can never beat it...

**lom** · 30-01-2021, 10:31 AM

Originally Posted by Klondyke

The communists (with their planned economy) can never beat it...

could be related to the fact that their economy seldom goes according to the plan..

**baldrick** · 30-01-2021, 02:24 PM

**Backspin** · 31-01-2021, 01:36 AM

I posted a video of my Twitter buddy who was commenting on the Game stop saga in real time.Does the Weimar never stop?

And some of TD's finest just said haw haw he is just a nutter spouting nonsense. He may be a nutter. But he was a right nutter. Sucks that he deleted it because of the profanity in the title

Heres his afterthoughts

**PlanK** · 31-01-2021, 02:43 AM

2 hedge funds admit defeat, bail out at huge loss as GameStop share surge hits 1000%-a27ql9e_460s-jpg

**jabir** · 31-01-2021, 10:40 AM

That's a false white flag, they'll simply retrace and find or create other angles. I reckon best place to start is right at the top, and if they look hard enough maybe there's someone in the Biden admin willing to become rich.

**harrybarracuda** · 31-01-2021, 11:45 AM

Originally Posted by Backspin

I posted a video of my Twitter buddy

Aaaaw skidmark has "twitter buddies". His "twitter buddy" on the other hand has "followers".

**Backspin** · 01-02-2021, 08:37 PM

Wallstreetbets attacks the silver shorts

Silver Surges Most Since Lehman Bankruptcy; Hits 7-Year High Over $30

Following a coordinated campaign to buy both silver ETFs in the paper realm and precious metals in the physical, which over the weekend which left virtually US precious metals retailer with little to no physical inventory, silver has finally exploded higher following in the footsteps of other "most-shorted" names, and it was last trading just around $30/ounce, soaring by 11.5% - its biggest one-day jump since Sept 16, 2008 - the day Lehman filed for bankruptcy. And, if silver closes here, it would be the highest price since early 2013.

Trying to pour cold water on the second biggest one-day move in silver this century - because let's face it, getting silver to move up by 10% is far more difficult than getting a low float, super squeezed stock like GME to soar by 1600% - Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank said that "so far, it is not exactly the GameStop anomaly, but it is a hint that the retail traders who just discovered the strength of their unity are out there, looking for new targets – and apparently bigger ones."

As we reported extensively over the weekend, silver’s advance can be traced to r/WallStreetBets forum, where one post last week declared the metal “THE BIGGEST SHORT IN THE WORLD” and encouraged traders to pile into the iShares trust as a way to stick it to big banks.

The calls to buy silver began appearing on WallStreetBets as early as Wednesday, when the mania surrounding GameStop reached a fever pitch. Some of the posts touched on a similar David-vs-Goliath theme that has inspired individual investors to take on short-selling hedge funds: “Any short squeeze in silver paper shorts would be EPIC. We know billion (sic) banks are manipulating gold and silver to cover real inflation.”

"It'''s Been Nuts": Silver Surges Most Since Lehman Bankruptcy; Hits 7-Year High Over $30 | ZeroHedge

**Backspin** · 01-02-2021, 08:58 PM

This is a worldwide effort. We are too small and it probably wont work. But the move is already stronger than we expected. Go buy some silver or gold bullion if you want to help. Every little bit helps

**cisco999** · 01-02-2021, 09:02 PM

Originally Posted by strigils

Some of the scum that occupy positions in these institutions are no better than boiler room scammers

Only some of them?

**Joe 90** · 03-02-2021, 03:47 AM

Amateur investors swept up in the trading frenzy surrounding US retailer GameStop "could lose everything", the former stock broker who inspired the Wolf of Wall Street film has warned.

Jordan Belfort, who was jailed for market manipulation in 1999, said such investments could be "great on the way up, but painful on the way down".

GameStop shares surged 700% last week as amateurs, inspired by tips shared on social media, piled into the stock.

But they have dropped sharply since.

Shares fell 63% on Tuesday to $81 - a far cry from last week's record of almost $350.

Mr Belfort said he sympathised with the small-time traders drawn to GameStop, many of whom wanted to turn the tables on big Wall Street firms.

But he told the BBC: "You must be so careful because eventually these stocks are going to come crashing back down to earth.

"If you are looking at this as a way to make your living, you'll have to catch a falling knife on the way down. I would urge people to take their chips off the table."

Real 'Wolf of Wall Street' offers investor knowhow
Real Wolf of Wall Street sues film studio for $300m
The trading frenzy began in late January, when small-time investors began buying up shares in GameStop, a loss-making video games retailer.

Many Wall Street hedge funds - known as "short sellers" - had bet against the firm, meaning they stood to make money if its stock fell, but lose heavily if it rose.

short selling graphic
But amateurs, inspired by posts on Reddit and Youtube, realised they could drive up the price if they bought en masse, inflicting losses on the big players and making gains for themselves.

The excitement also encompassed other stocks such as AMC and Nokia, while the price of silver has seen intense speculation.

'Real danger'
Mr Belfort said the trading had taken on a political tone, with investors seeking "justice" against Wall Street firms they perceived had behaved unethically.

He added: "All of a sudden there is a way for people to communicate on message boards like Reddit, there's a way for them to trade instantly on platforms like Robinhood.

"You put those two things together with the power of social media and bam - just like that the little guy got the best of the big institutions."

However, he said there was a risk of people getting swept away in the excitement, noting that those with little understanding of stocks were now buying GameStop shares.

"Be aware of being the last person on the bandwagon, that is really the danger here."

Mr Belfort, who is now an author and motivational speaker, defrauded investors of $200m in the 1980s and 90s and is still paying restitution to his victims.

His memoir was the inspiration for Martin Scorsese's Wolf of Wall Street film in 2013, but he sued the film's producers for fraud and breach of contract last year claiming $300m in compensation.

Mr Belfort alleged Red Granite Productions - whose co-founder Riza Aziz was arrested on suspicion of money laundering last year - lied about being "legitimately funded" when he sold the rights to his story.

The company's lawyer described the lawsuit as "desperate and supremely ironic".

**Backspin** · 03-02-2021, 09:37 AM

Don't count the Redditors out just yet. Sure. Paper prices fell back down and stabilized. But that's half the story.

US Mint Warns It Can't Meet "Surging Demand" For Silver & Gold

With The Fed printing money 'out the wazoo', monetizing COVID relief package debt as fast as Congress can pass the bills, demand for bullion was already surging. However, the last week or so, on the heels of the Reddit-Raiders taking aim at Silver, demand for silver (and gold coins) has exploded...

Sales of U.S. gold bullion coins rose 258% in 2020 while silver coin demand was up 28%, the U.S. Mint said Tuesday.

“There are massive shortages. We’ll be completely out of stock if it carries on like this - the first time since our company opened in Singapore seven years ago,” said David Mitchell, managing director at Indigo Precious Metals.

And now, courtesy of Reuters, we have an answer to the shortage.

The US Mint is limiting distribution of its gold, silver and platinum coins to specific dealers because of heavy demand, and a limited number of suppliers of metals, it said in a statement.
The United States Mint said on Tuesday it was unable to meet surging demand for its gold and silver bullion coins in 2020 and through January, due partly to pandemic-driven demand and plant capacity issues... Heavy buying has continued in 2021, it said, squeezing supplies, which had already been tight as the coronavirus affected production.

**Joe 90** · 06-02-2021, 06:30 AM

A woman has been inundated with thousands of requests for financial advice and trading tips after people misinterpreted her surname.

Zoah Hedges-Stocks, from Suffolk, stated on Twitter hers was "not a finance account" and did "not have any trading advice" in response to a flurry of queries about GameStop shares.

"Hedges-Stocks is my surname", she added in her tweet.

It has been seen 40 million times and cheered up lockdown, she said.

The 31-year-old writer from Leiston said requests for investment tips began coming in droves during a trading frenzy surrounding US video games retailer GameStop at the end of January.

GameStop shares surged 700% as amateurs, inspired by tips shared on social media, tried to get their hands on the stock.

And many approached Ms Hedges-Stocks for what they believed would be her expert advice on stocks, shares or hedge funds.

Zoah Hedges-Stocks
IMAGE COPYRIGHTZOAH HEDGES-STOCKS
image captionZoah Hedges-Stocks had to insist that her surname was not actually her job
Her replying tweet - pointing out she had no knowledge at all of financial matters - quickly went viral.

Since posting it on 29 January it has been retweeted 54,000 times and more than 700,000 people have reacted to it.

Ms Hedges-Stocks admitted she knew more about privet hedges than speculating on the stock market.

"I'm a bit of a financial naif," she said.

"I'm not really sure I agree with the stock market - it's just gambling, isn't it?"

However, she admitted the popularity of her post had been "incredible".

"The virality was a fun early birthday present," said Ms Hedges-Stocks.

The double-barrelled surname which has prompted the confusion is down to her mother and father who "wanted me to know I was part of both families".

Her tweet inspired several other copycat tweets including a Mr Bonvino who admitted he could not give any advice on quality wines, a Ms Cobb who was unable to help with salad dressing suggestions and a Mr Weedon who said he had absolutely no bladder advice to impart.

**panama hat** · 06-02-2021, 09:12 AM

Originally Posted by jabir

Fear not, Biden has come back from the dead to save us.

You're repeating the same thing time and again . . . you'd prefer Trump to make it worse or nothing to be done?

Easy to throw shade . . .

**Little Chuchok** · 06-02-2021, 09:25 AM

**Backspin** · 21-02-2021, 04:41 AM

The reddit silver short squeeze attempt is a medium to long term play. I am gonna pitch in.

**Backspin** · 23-02-2021, 01:38 AM

I pitched in a bit. Why the hell not. Nothing better to do than the silver larp

**panama hat** · 23-02-2021, 02:28 AM

Originally Posted by Backspin

I pitched in a bit. Why the hell not. Nothing better to do than the silver larp

No jokes now on my part.

What do you hope to get out of your 6k, based on what and in what timeframe? Why would silver, which is a widely traded commodity be guided by this?

I ask because I don't quite get the whole alternative/Reddit market thing and am, admittedly, fully into traditional stocks etc...

**Backspin** · 23-02-2021, 05:05 AM

Originally Posted by panama hat

No jokes now on my part.

What do you hope to get out of your 6k, based on what and in what timeframe? Why would silver, which is a widely traded commodity be guided by this?

I ask because I don't quite get the whole alternative/Reddit market thing and am, admittedly, fully into traditional stocks etc...

There is 6 big banks that have been illegally taking a concentrated naked short position in silver and gold futures. Its been going on forever which is why gold and silver have been the only assets trading sideways like dogs for the last 10 years while literally everything else is in a hyper bubble.

The only possible way to break the metals out of this straight jacket is to buy as much physical as you can. PSLV is a physical silver ETF. Or just buy physical. I chose the ETF.

It really feels like this can go on forever but why not try. It has turned into a movement. Ppl are competing on Twitter for how much they will buy. Some ppl are throwing some pretty big money at it.

That guy threw in $200,000+

This guy threw in $445,000

**Backspin** · 23-02-2021, 05:07 AM

https://twitter.com/TeminatorTrader/...995078154?s=20

**panama hat** · 23-02-2021, 05:16 AM

Thank you.

This opens up some questions for me - if you don't want to or don't feel like answering just say so - I appreciate the above already.

Originally Posted by Backspin

Its been going on forever which is why gold and silver have been the only assets trading sideways like dogs for the last 10 years while literally everything else is in a hyper bubble.

Isn't that because gold and silver, as an example, are resources open to purchasing/safe haven market tendencies?

Originally Posted by Backspin

The only possible way to break the metals out of this straight jacket is to buy as much physical as you can

We have a few Krugerrands and my father collected silver bars which he left us when he died - is that the type of 'physical' that you're talking about?
You buy and then physically receive the metals?

Originally Posted by Backspin

It really feels like this can go on forever but why not try.

I'd say not with metals, but with companies why not. They are already in many cases traded at far too higher multiple of their actual values.

Originally Posted by Backspin

It has turned into a movement.

I get that and think it's a great idea because we all know that as long as small traders like me make a bit of dosh here and there we're happy - while the system is rigged for some to make billions.

Originally Posted by Backspin

Ppl are competing on Twitter for how much they will buy.

Can they prove it or is hot all hot air?

Originally Posted by Backspin

Some ppl are throwing some pretty big money at it.

Yes, money they can afford to lose, I guess, but compared to the overall market it is tiny.

Thanks again

**Backspin** · 24-02-2021, 02:06 AM

^ Yes. Krugerrands and those silver bars are the kind of physical that's in play. If you've held onto them this long, you might as well keep holding. 1 ounce of gold should be worth closer to $5000 to $10,000 if not for the shenanigans in the futures market.

Can they prove it or is hot all hot air?

Its in the data. Here are the increases in buying yet the price still goes sideways or falls. The price is getting hit today but its options expiration day. They always club the price on these days. But they shouldn't be able to get away with this forever if ppl keep buying.

**panama hat** · 24-02-2021, 02:44 AM

Thanks.

Actually the Krugerrands were from my great aunt in Florida who kept a tin of them in a kitchen drawer because she didn't trust the maid.

Weird old bird, left fairly well everything to the her dogs (dobermans) to be taken care of and then the local pound when she died

**jabir** · 24-02-2021, 11:57 PM

^^
I'd go with you that the gold (and others) price is where deep pockets want it to be; should be significantly higher.

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