Blowing up all over the internet yesterday and today - the news that reddit users - specifically r/wallstreetbets - had discovered that hedge funds were over leveraging GameStop and so pooled their resources and joined the game. Certain hedge funds now teeter on the edge of bankruptcy. (This never happens - they get bailouts. If they were people this would happen).
So far this is a wonderful little feel-good story.
Hilarity ensues. Some of the more amusing comments: "Reddits coordinated attack on Wall Street is going as planned", "Reddit woke up this morning and decided to make their own stimulus check". Now - everything they're doing is perfectly legal - and - if they weren't so smart no brokerage or hedge fund would have a problem taking their money. But the redditors are taking theirs, and it's fast becoming "war" - with the brokerages that solicited the redditors business in the first place now not allowing them to trade certain stocks on their accounts. This is market manipulation, illegal, and will probably result in a class-action lawsuit has resulted in a Class Action Lawsuit.
A class war played by real people against billionaire investors in hedge funds - on their own terms - who now have the audacity to complain that they're winning.
Note that the brokerage many are using is called "RobinHood", only they're behaving as the Sheriff of Nottingham. To summarize their position: "You're allowed to lose money on the Stock Market, but if you should by accident or intent make money we'll suspend/freeze/limit your account.
A few links to bring you up to speed:
- Jim Cramer reveals dirty tricks to short market
- Chamath Plihapitiya roasts CNBC Anchor
- Charles Payne roasts Wall Street
- Billionaire Leon Cooperman complains that "wealthy people are being attacked"
- Winklevoss twins on Reddit Trader Rebellion
- Robin Hood Limits Trading & Here
- Robin Hood gets sued
There's more than one way to stage a revolution...So far, all good news!