It's over in the sense that it seems they have their strategy to take the wind out the sails of this, but it seems like a lot of the underlying market conditions are still there. The price has taken a tumble and yet brokerages are still restricting stock purchases and they are still doing the ladder attacks. I know they are saying short interest has decreased buy my understanding is that well over 80% of total shares outstanding have been shorted as of yesterday, which is easily over 100% of float. I am starting to think there is some real credence to the counterfeit shares theory, and they are going to have to slowly deflate the market for GME and get people to not care anymore so they can buy back those shares. Otherwise if they lift the restrictions on purchases, it's going to become increasingly apparrent that something is up.
Basically, when you naked short sell, you sell stock that you don't actually have. The argument has been made that this is essentially counterfeit stock and that is how they shorted more shares than there are total shares of GameStop. Only market makers are supposed to be able to short sell, but honestly the SEC is a paper tiger and likely wouldn't investigate anyways if non-market makers were doing it. The other side of it would be to argue that you can basically just keep borrowing stock from people who bought it from short sellers and thus it's not counterfeit and just part of how the market works. However, the extent of consent manufacturing and coordinated market manipulation by so many different groups has been making wonder if there is more to the counterfeit stock theory.
A ladder attack is when hedge funds sell stocks back and forth to each other to lower the price of a stock artificially.
I didnt know there was a word for that, i just assumed it would naturally happen based on my understanding of the Line. So it sounds like basically any "change" that this might bring about is just closing that particular loophole so this can't happen again, and probably killing Robinhood/ retail trading in general
It's over in the sense that it seems they have their strategy to take the wind out the sails of this, but it seems like a lot of the underlying market conditions are still there. The price has taken a tumble and yet brokerages are still restricting stock purchases and they are still doing the ladder attacks. I know they are saying short interest has decreased buy my understanding is that well over 80% of total shares outstanding have been shorted as of yesterday, which is easily over 100% of float. I am starting to think there is some real credence to the counterfeit shares theory, and they are going to have to slowly deflate the market for GME and get people to not care anymore so they can buy back those shares. Otherwise if they lift the restrictions on purchases, it's going to become increasingly apparrent that something is up.
wait are you saying people are buying stock that isn't even real, how is that possible? also whats a ladder attack?
Basically, when you naked short sell, you sell stock that you don't actually have. The argument has been made that this is essentially counterfeit stock and that is how they shorted more shares than there are total shares of GameStop. Only market makers are supposed to be able to short sell, but honestly the SEC is a paper tiger and likely wouldn't investigate anyways if non-market makers were doing it. The other side of it would be to argue that you can basically just keep borrowing stock from people who bought it from short sellers and thus it's not counterfeit and just part of how the market works. However, the extent of consent manufacturing and coordinated market manipulation by so many different groups has been making wonder if there is more to the counterfeit stock theory.
A ladder attack is when hedge funds sell stocks back and forth to each other to lower the price of a stock artificially.
I didnt know there was a word for that, i just assumed it would naturally happen based on my understanding of the Line. So it sounds like basically any "change" that this might bring about is just closing that particular loophole so this can't happen again, and probably killing Robinhood/ retail trading in general
No loopholes are getting closed unless this gets seriously out of the bag for Wall Street, and even then I'm skeptical.