-69 upvotes, 7 direct replies (showing 7)
Looks like a pump and dump to me...
Comment by PlayMp1 at 27/01/2021 at 08:26 UTC
48 upvotes, 0 direct replies
Not really, there's a bunch of big players that are about to be bankrupted this week if it stays above $150, basically a way for people to crush bad bets that it would go ludicrously low
Comment by 1sagas1 at 27/01/2021 at 11:32 UTC*
38 upvotes, 0 direct replies
Then you don't know what a pump and dump is lol. People get some good news and it goes up. People who are shorting will lose money when it goes up so they bail and buy to cut their losses. Their demand by buying makes it goes even higher and the cycle repeats as more and more shorts jump ship
Comment by Singular-cat-lady at 27/01/2021 at 15:19 UTC
27 upvotes, 2 direct replies
Pump and dumps are when people spread misinformation to create false demand. There are two key differences between this and what is happening with GME:
1. Misinformation is not the driving factor. Short squeezes are well documented events, and the fundamentals check out. 140% of the shares were shorted - this is a fact.
2. Demand for the stock is genuine, not false. Short sellers are legally obligated to buy back the shares they borrowed, and people want to be on the other end of this trade. They aren't trying to drive up the price in order to sell to a bigger sucker, they're trying to be the one to sell to the guys legally obligated to buy 140% of the existing shares.
Comment by Cockroach-Weak at 27/01/2021 at 15:08 UTC
14 upvotes, 0 direct replies
Something tells me you don’t even know what a stock option is
Comment by [deleted] at 27/01/2021 at 13:59 UTC
12 upvotes, 0 direct replies
Not at all, it's 100% a short squeeze.
Comment by [deleted] at 27/01/2021 at 16:26 UTC
5 upvotes, 0 direct replies
Congrats! Ignorance always wins debates!
Comment by [deleted] at 27/01/2021 at 11:11 UTC
4 upvotes, 0 direct replies
Nah. Chamath and Elon musk are also in on it. Its a short squeeze to fight against hedge fund managers