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It's virtually guaranteed that this stock popped up on the radars of the funds who run momentum trading strategies. And it would be very weird for a lot of them not to jump on that bandwagon (at the very least because it's their mandate to do so).

This is apparent from the level 2 market data and the size of share blocks that have been moving.

this is a classic example of a positive feedback loop. wsb did not do all of this but they were the spark that created the fire.

Feedback loop for sure. A movie will be made on this. YOLO!

I can see GameStop putting an end to some of this by issuing non-voting shares to one of the hedge funds that is current shorting, giving them a known out and pocketing a huge investment for M&A.

That wouldn’t be as fun though...

that's what i've been thinking about too-- at what point is it economically expedient for GameStop to sell shares directly to the shorts to bail them out? doesn't seem much weirder than all the credit default swap silliness that's happened for the past few years.

they cannot just make whatever stocks they want up. they are limited there on the number they can emit. plus, not sure if they get to choose who gets to buy the shares.

also, why would gamestop bail out the same people that wanted to drive it into the ground?

So they benefit. It’s stock is up, but that doesn’t help their business.

20B in volume in a single trading day and people still think this is just retail. Sheesh.

It’s the retail volume that is breaking things, but yeah other are riding momentum.

Exactly as I said... this is not just retail. Not 20B in a single trading day.

That’s 4 million people averaging $5000. It could be?

Not really, few percentage points of that sub are actually investing. Loud minority.

Retail has 10x leverqge with out of money call options, don't forget that. Of course hedge funds need to sell and hedge those options that create the huge volume

2-3 weeks ago when share prices were around $17, GME had a market cap of less than 1.2B. WSB has 7.6 million users now, but I assume it went up a lot recently. Say 2 million of them bought some GME. To buy 50% of the shares a couple weeks ago it would have only taken $296 each. So they could ABSOLUTELY get prices moving significantly. Now of course lots more people have jumped on now. But that 20B volume number is after they got the price to ramp up!

Thats assuming all of wsb bought in on it. There are plenty of casual followers there that did not. Alternatively, there are plenty of non-wsb-ers that followed the hype.

> Say 2 million of them bought some GME.

I think you are off by one or two orders of magnitude. I'd wager that a full half of the subscribers haven't even opened reddit in the last week.

Well considering it's currently at 7.8 million subscribers, and a week ago it was 2.1 million subscribers [1] I'd love to know how 4 million redditors subscribed without opening reddit

[1] https://web.archive.org/web/20210125060034/https://www.reddi...

Ok that's fair. New subs does mess with my estimate.

I'll still insist that only a small minority actually purchased GME.

Don't know about that. I have never in my life bothered with stocks, and now I bought a share with all the spare money I could afford to lose. Me, a complete outsider. I can say at least 1M of the members hold stocks. And probably many more. I only got in the sub to watch how things unfold, intent on buying from the beginning. I don't think anyone would bother following WSB just for the giggles. Most of the posts are for the sole purpose of reaffirming our collective choice of holding GME.

> WSB has 7.6 million users

I keep seeing this metric everywhere, it's irrelevant, $GME became a meme stock, people are joining the sub to check out the fun, not to invest. Max 1% of them are really investing anything of value.

Cannot confirm, I joined to watch things to eventually buy, and I bought. I never bothered with stocks before. I also know many like me, in my real life circle, who did the same. A good chunk of WSB holds GME, is my estimate.

Best number should be Robin Hood consumer. I read somewhere that 56% of RH subscribers were owning GME. I dont do stock trade, not sure whether this means every one has atleast one or the company let you group the $$ amounts too.

I do not agree that Occum's razor is much help here.

AFAIK this is completely unprecedented. A crowd of whomever and bankers with clients money at stake, disagreeing so absolutely about fundamental values. A mass action making the third corner of a very strange triangle.

The explanation you offer (it's sensible, except it is not one hedge fund) is no more or less complex than a conspiracy. What ever is going on there are a lot of moving parts.

I am not making predictions!

I wouldn't call it a conspiracy theory or call this out as an example of Occam's razor.

> Collectively they can, and did, cause this.. no need to invent other actors to explain it.

The thing is, people imagine this requires a lot of capital to pull off. How did WSB get so many people to invest so much into GME as to hit a hedge fund so hard? Do so many people really have that much money just to throw away? There is a need to explain this, and inventing other big actors does explain this much better for people.

I mean the WSB user count has grown from 2.2m on Monday to now 7.5m. If 5 million of those users all bought $100 worth of GME that's half a billion, if they bought $1000, that's 5 billion.

Over 700 million shares were traded last week, so even if every WSB user bought 10 shares, that wouldn't account for close to a majority of the activity.

Volume is meaningless, as the same share might be traded back and forth several times, e.g HFT or order flow buyers flipping stocks within microseconds.

Would HFT traders flip a stock 10 times among each other just to fulfill a single Redditor's buy order? (Honest question, I don't know enough about standard HFT practices to confidently guess.)

Indeed, figures from citadel shows retail volumes at around 30%.

https://www.bloomberg.com/opinion/articles/2021-01-29/reddit...

> the WSB user count has grown from 2.2m on Monday to now 7.5m. If 5 million of those users all...

Is 5/7.5M users of any forum did anything it would be some kind of record level conversion, let alone speculating $100.

On average I don't think $100 is that crazy. Most haven't YOLO-ed anything. While many YOLO-ed for 1-2 shares, there are many who have YOLO-ed for thousands to tens of thousands of dollars.

I'll also add that tons of people I know who have never traded in the markets woke up Tuesday and Wednesday and decided to buy a single share for the lulz. I'm fairly convinced 70% of the volume may have been due to retail.

COVID created a bored populous with stimulus checks to blow.

Recent retail investing has moved more tickers than just GME.

As I noted in a similar thread a couple days ago..

When all of this started last fall, the price was bouncing between $5-10. Therefore, with as little as $500 (aka less than a stimulus check), you get 50-100 shares. Even as recently as ~3 weeks ago, it was $20-25/share. It cost more to buy in but still within reach for all but the smallest investors.

And that's not considering the options side.

As of the 19th (aka 12 days ago), you could still buy $35 calls for $12 with a Feb 19th expiration. That $1200 is worth upwards of $12-15k now.

Now multiply any of those by a couple hundred thousand investors, some with much more to put in.. and we still haven't touched the medium, let alone the BIG players.

number of shares shouldn't matter much though. especially now that all these brokerages offer fractional shares. I guess it does matter a little more for options since those lots are bigger and fixed.

A lot of us have a few thousand to yolo. I made money on it too. I'd say most of us were in it for the lulz. who cares if we lose.

This. A lot of my immediate co-workers have YOLO-ed on this because it's entertaining and we like the stock.

Reddit users would be an amount of the capital in the GME situation, but far from the majority.

There's a huge amount of other hedge funds who actually control the vast majority of the capital screwing over Melvin at the moment. This whole scenario is hedge funds making money off of other hedge funds and a bunch of retail investors making a small amount but risking huge amounts when GME inevitably collapses.