You are certainly right for many participating in this short squeeze. But collectively this short squeeze is undeniable proof that what's good for the goose is not good for the gander. The hedge funds play by a separate set of rules from the rest of us.
This thread/discussion is attached to an article about Discord banning one (of multiple, only one got banned) communities and the r/wallstreebtets community going private (moderators limiting access to members who've already joined and blocking outsiders). Since then, the subreddit was opened back up. How did Reddit close it down if it everyone can still access it?
Does it prove that? I tend to agree that it's true, but I don't see what it has to do with the current situation. If anything, I expect most people to argue the opposite - when the price drops again, and some retail traders lose their shirts, there will inevitably be a flood of thinkpieces about how cruel the financial system is for permitting them to lose money on the same terms as a hedge fund.
I tend to think people's losses will be smaller (as individuals) then everyone seems to think. This is reddit we're talking about, and people using RobinHood. I'm guessing losses for those that didn't get out will be limited to beer money. I think the reason they could squeeze the shorts is because of the size of their army, not the depth of their war chest...
I'm more worried about the retail investors that jumped on the bandwagon too late with their life savings. The ones that got in at the start will be fine or better than fine.
TBH, if people did that....they probably already lost everything on bitcoin back in 2018. There's no shortage of hype for people to fall for. Bandwagoning is a great way to make a small fortune on stocks, if you start with a large fortune.
I think it proves it in the sense that hedge fund do this kind of stuff all the time and no one ever hears about it, because those kinds of money-making strategies are what we expect of them.
Exactly! The bet has been people aren't capable of coordinating in large numbers to take advantage of this so it's not really broken. Now that they are it's officially broken and will be reviewed.
You mean the folks who are about to walk into the storm thinking it's never going down and lose their bet? Yeah those guys are screwed and they will make wonderful emotional think pieces written by the same corporation who gave a mouthpiece to the hedge funds. The issue is it's a continuation of the equality issues in America so rational behavior may not be in scope for this one.
