Comments like these really drive home how much a deranged cult phenomenon this whole thing is, more so than any headlines.
As they say, we've seen who you cheer for, your disapproval means nothing.
At the same time, it's still just people getting lucky/unlucky in the stock market. One Wall Street group got burned, but others made bank. At no point did the system change or become threatened in any way. Given all that, I don't understand why it is portrayed as some sort of heroic fight between good and evil.
Diamond hands all the way. They had the chance to take it on the chin like a man, but they wanted to play rough, so we'll play rough.
What's the endgame? Sell at some point? At a profit or a loss?
Seems like in that scenario anger would play to the hands of the people who bought earlier and can sell to newcomers...
The whole thing driving this is a massive buy-up of all available stock. No one wants to sell; everyone wants to buy.
If Melvin Capital were a patient in a hospital, it'd be brain dead and on life support. We're just waiting for everyone involved to say their goodbyes so the plug can be pulled.
At $90 a share, Melvin had to get a $2.75bn capital injection to stay afloat. That was the time to get out. They instead tried to force a sell-off so they could buy up cheap shares and reduce the bleeding. That failed. For roughly every $12 over $90, Melvin Capital lost $1 billion. Well at $348 a share, they're now negative $21.5bn in value. Its over. Their greed has resulted in their utter destruction.
Once Melvin's corpse is wheeled out of the hospital, BlackRock and Burry might head for the exit, especially Burry, since he bought in at $4 a share, and a 5% stake there is such an enormous return even at $200, much less $348, that at some point, you're just being a greedy asshole.
Some people on WSB a little more ruthless, and frankly with the BS that Wall Street has gotten away with for the past few decades, I can't say I blame them; they plan to hold till $1000, which hilarious and crazy as it sounds, may not be impossible, but I'd judge it unlikely.
I'd say anyone that got in $GME before the huge price spike ($20 and lower), now's a good time to cash out. You won. Your lottery ticket hit all 6 numbers. Go live your life.
To all the short-sellers, I can only bow and say, "We who are about to die, salute you."
Sure. Then what? For all the other people, that is. Just plain crashed stock prices? An unfortunate lesson in counterparty risk as they try to extract their winnings from a bankrupt hedge fund?
This is the narrative going around, but is there any evidence that they had a completely un-hedged position? That they had absolutely no cover at all? I know you said "potentially no limit", but you say that, and continue on to posture that they're obviously down $21.5B. As far as I understand it, their TAUM is ~13B. So you're claiming that they lost the entire fund, and are just... pretending it didn't happen?
Lets pretend that GME goes to 1500/share, and Melvin Capital materially misrepresented (ie, criminally lied, which feels like a big accusation) about exiting their position, and they find themselves down $100B. Again, they only have ~13B TAUM.
Where do you expect the other $87B to come from? Or did you switch half-way through and are not just talking about Melvin Capital anymore?
Yes. That's right. You've exactly understood it.
> is there any evidence that they had a completely un-hedged position?
The question isn't, "Did they have a completely un-hedged position?" the question is, "Can the rest of their positions in the market cover this specific position?"
There's every reason to believe they're flat out lying about having liquidated their short position in $GME.
Don't worry though. At 4 p.m. on Friday, we'll know for sure. Just hang tight and wait. I predict its going to be a painful time for Melvin.
From what I've seen, this is very unclear. It all hinges on very specific phrasings down to "did they forget the plural s/did they edit it back in".