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Crowdsourced attacks on short sellers

Article:

TLDR: GameStop (GSE) is an example of a small group of online instigators drumming up a larger group of individuals to attack short positions in stocks that are rightly weak due to underlying business problems.

Ken’s Take:

This explains why relatively low income people I was around in multiple locations around the country were talking about stock positions in GameStop, or AMC (movie theaters).

None of them were the instigators in r/wallstreetbets, but they were reading it and using RobinHood and other low cost trading apps to join the mob putting pressure on people holding short positions in those stocks.

That this came from Reddit, which created gang upvote/downvote doesn’t surprise me. They figured out how to monetize that process.

I don’t like the stock “market”. Betting on what other people will think, or as in this case, ganging up to attack other groups, independent of the business, doesn’t seem like productive use of capital.

Somebody, at the end is going to be the last person holding GameStop…. and they will lose their money. I don’t mind that they pay for their silly greed.

2 replies on “Crowdsourced attacks on short sellers”

Your position seems to be the minority, at least of what I have read and seen online. It’s the little guy v big guy class warfare thing. I think you are right, though. And it could start a trend that might not work out well.
Are you saying GS was rightly where it was because it was a crap company and now it is wildly overvalued? Sounds about right. My gripe is companies locking sales when they think things arent going the way they or the big money wants. Sort of like FB and Twitter censorship.

I disagree with RobinHood and the other cheap trading methods closing down the market. The basic thing here is some rich people got their asses handed to them by people who marshaled crowd source rich people money and put the screws to them. Rich people, who own politicians, ain’t gonna take that lying down.

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