Forum Overview :: Wall Street Kid
That wasn't the start of the thread and what misinformation? by MM 01/27/2021, 11:10am PST
Here, let me take a break from washing down hormone pills with a soy latte that I'm holding with pinkie extended and copy the entire thread here, because posting the highlights and expecting you to click a hyperlink to get the full context is something straight out of Orwell's 1984:

Step 0: Citadel pays Robinhood for order flow. Citadel gets to see RH's orders a few milliseconds before they're filled. Citadel may choose to front-run some of those trades.

Step 1: RH's customers and WallStreetBets start manipulating $GME. This is happening in the open.
Officially, they're manipulating $GME (and $BB and $KOSS) because these low-value stocks are being very heavily shorted, and if something moves the value of the stock up (like, tens of thousands of retail investors acting in near unison), those short-sellers may be forced to sell cover their borrowed shares. [Ed. note, this is a typo he corrects further down. He meant to say "buy to cover"] If most shares are held by retail investors who won't sell, the price will skyrocket (supply/demand) until someone does. The bear hedge funds and such will still have to buy to cover, which may cause a bit of a liquidity crisis for the funds.
The concept of "Screw the hedge fund vampires who exist only to destroy companies like Gamestop" is a big part of /r/WallStreetBets's messaging. It's a compelling message, and a decent secondary reason for this.

The primary reason to manipulate markets remains profit, though.
Step 2: HFTs buy shares ahead of Robinhood users.

Remember Citadel, the firm who can front-run robinhood trades, and got to see all of that RH data a little early because they paid for flow? Yeah. When do you think they started buying $GME in front of RH traders on momentum?
Because the volume of shares exchanged suggests that the HFT folks were all over this, all the way to $150. The message on WSB might be "lots of little guys screwing big Wall Street", but the truth is that the HFT robots were screwing everyone, while paying RobinHood a kickback.
Step 3: A hedge fund becomes insolvent. Today it was Melvin Capital Management. It very likely won't be the last.

Melvin immediately sells off a portion of itself, because it needs the influx of cash or it will vanish in a poof of smoke, vaporizing ~$15 Billion in the process.
Step 4: Who's the lead investor, picking up part of a usually successful fund at fire-sale prices?

Right. Citadel, probably with some of the cash they made by repeatedly profiting in the milliseconds before filling the trades that collapsed this fund.

WSJ News Exclusive | Citadel, Point72 to Invest $2.75 Billion Into Melvin Capital Management
Hedge fund Melvin Capital has been hit hard by a series of short bets to start the year, down nearly 30% for 2021 through Friday, people familiar with the firm said.
Step 5: Citadel still has access to RH order flows, is still allowed to front-run them and/or pocket the spread, and can use that and other information to determine the next over-leveraged fund that's going to get squeezed.

They might even be able to accelerate the squeeze.
So, the next time you discount the impact of "4chan with a bloomberg terminal", remember that they are not the only ones who stand to benefit from intentionally screwing exposed short-sellers.

The professionals are all too happy to amplify the efforts of the amateurs for profit.
Because if amateurs manipulate the market, uh, truthfully, then nobody loses their license.

"I (retail investor) bought because I hate Citron & hedge funds, and we're going to screw them for profit. Join us, but do your own due diligence. YOLO!" might just be legal. IANAL.
If a licensed broker/dealer did this, they'd lose their license, and probably go to jail. Martha Stewart did time for less.

But Citadel, by paying for order flow and sitting in the middle, gets to legally ride-along, printing money the whole way.
So, when you ask yourself, "who pays for no-commission trades, and why?" or "what's the harm of RobinHood's business model?", take a look at what happens behind the scenes, in the milliseconds after you press buy, but before you own those shares.

It's vampires all the way down.

buy. buy to cover. My kingdom for an edit button.
God bless r/WallStreetBets NT by Gamestop employee 01/26/2021, 2:18pm PST
    THEY DID IT by Gamestop employee 01/26/2021, 2:53pm PST
        I was just reading about this today also. Craziness NT by laudablepuss 01/26/2021, 3:14pm PST
            Good recap of what's happened since Friday here by Mysterio 01/26/2021, 5:34pm PST
                Gamestop is just such a shitty company, I don't see how it won't backfire NT by Ice Cream Jonsey 01/26/2021, 9:03pm PST
                    The value is being created by the short squeeze. Options expire on 1/29. NT by They're holding till then 01/26/2021, 9:36pm PST
                        Got it. NT by Ice Cream Jonsey 01/26/2021, 9:46pm PST
                            In hindsight I should have listened to myself but those dumb retards on WSB by made me hold 'till Monday. Oh well 02/04/2021, 2:47pm PST NEW
                Counter Argument: by Mischief Maker 01/27/2021, 7:21am PST
                    Mischief Maker: How do you sleep at night? NT by WSB: On top of a pile of money 01/27/2021, 8:18am PST
                        WSB fucks Wall Street out of more money than the DSA ever dreamed of and he's by jealous with impotent rage 01/27/2021, 8:19am PST
                        You didn't read the thread, did you? NT by Citadel: On top of a pile of money 01/27/2021, 8:31am PST
                            Here's a thread reader link: by Citadel: On top of a pile of money 01/27/2021, 8:34am PST
                            Citadel just gave Melvin 2.75 billion to go bankrupt. by That seems counterproductive. 01/27/2021, 8:37am PST
                                Sorry I spoiled your meme. NT by Mischief Stinky Gay Hippie in SF 01/27/2021, 8:47am PST
                                    The idea that poor people shouldn't stand to profit from two whales by screwing each other is peak MM 01/27/2021, 10:08am PST
                                        Watching the hedge fund thieves cry like cunts about regulation is great. NT by Kirahu Nagasawa 01/27/2021, 10:37am PST
                                Re: Citadel just gave Melvin 2.75 billion to go bankrupt. by laudablepuss 01/27/2021, 10:04am PST
                                    That wasn't the start of the thread and what misinformation? by MM 01/27/2021, 11:10am PST
                                        Re: misinformation? by laudablepuss 01/27/2021, 12:44pm PST
                                            He isn't SAYING the redditors are in the wrong. NT by MM 01/27/2021, 2:24pm PST
                                                ...I shouldn't have used the term "Counter Argument," it implied the wrong thing NT by MMy bad. 01/27/2021, 3:03pm PST
                                        Also by laudablepuss 01/27/2021, 1:00pm PST
                                            Re: Also by Ice Cream Jonsey 01/27/2021, 3:48pm PST
                                        Martha Stewart went to jail because she lied to the feds, you moron NT by MM - scored 499th in class of 500 01/28/2021, 1:44pm PST
                                            "for less" does not mean "identical crime" professor genius. NT by MM 01/28/2021, 1:47pm PST
                                                I'm afraid there's no way to shoehorn that into making sense by laudablepuss 01/28/2021, 1:55pm PST
                                                    Murder CAN'T be worse than jaywalking THEY'RE UNCONNECTED NT by what it's like to be laudable 01/28/2021, 7:51pm PST
                                                        finished the beer, reread the post, realized I make no sense by what it's like to be laudable 01/28/2021, 7:56pm PST
    WSB Discord was shut down by Invested Id 01/27/2021, 2:48pm PST
        It's like the Borg if they were all morons NT by laudablepuss 01/27/2021, 7:44pm PST
    Uh oh! Oh no!! by Ice Cream Jonsey 01/27/2021, 7:45pm PST
        You're still a valued member of our community. NT by 01/28/2021, 6:44am PST
        lmao by Mysterio 01/28/2021, 9:31am PST
            Hoooooollly shit by hot stock tip 01/28/2021, 10:22am PST
    Massively depressed trading volumes in the legacy stonks today by Mysterio 01/28/2021, 9:46am PST
        Mysterio is correct. by The Sheriff of Nottingham 01/28/2021, 10:30am PST
            We'll put them in that jail we built for rich people who plunder the poor. NT by It's called Buckingham Palace v_v 01/28/2021, 4:55pm PST
                Who do you think invented Dogecoin by John Tamny 01/28/2021, 5:38pm PST
                    lol Forbes by dr. no 01/29/2021, 12:31pm PST
            I got out narrowly before it crashed. between AMC, GSE, and BB I got a 15% RI NT by Mysterio 02/02/2021, 5:11pm PST NEW
    Re: God bless r/WallStreetBets by The Sheriff of Nottingham 01/28/2021, 10:33am PST
    GET SHORTY by Elon Musk 01/28/2021, 1:04pm PST
        LMAO 349$/SHARE IN AFTER-MARKET TRADING GET FUCKED WALL STREET by Mysterio 01/28/2021, 4:39pm PST
    AOC, Ted Cruz, Elizabeth Warren, AND Donald Trump Jr all against Robinhood NT by holy shit 01/28/2021, 2:31pm PST
        Re: AOC, Ted Cruz, Elizabeth Warren, AND Donald Trump Jr all against Robinhood by MM 01/29/2021, 6:09am PST
            She's not wrong. Cruz and Hawley are traitors to the USA. by Kirahu Nagasawa 01/29/2021, 6:48am PST
    Robinhood pays off angry employees with $40 DoorDash coupons. by MM 01/30/2021, 6:13am PST NEW
    Look at this CRYBABY HEDGE FUND BITCH by Mysterio 01/30/2021, 10:59am PST NEW
    POINT: GameStop is actually a good long term hold! by Dumbshit Redditor 02/03/2021, 11:47am PST NEW
        COUNTERPOINT: They made their employees deal with the public face to face during NT by a fucking pandemic. 02/03/2021, 11:49am PST NEW
        Re: POINT: GameStop is actually a good long term hold! by Jesus 02/03/2021, 11:56am PST NEW
            Well, they have flipped their mgmt and their priorities... $20-50 seems fair? NT by The Happiness Engine 02/03/2021, 4:46pm PST NEW
                Well, they have flipped their mgmt and their priorities... $20-50 seems fair? by I Hate Epic 02/04/2021, 9:28am PST NEW
        We have a great microbrew scene by Mayor of Gamestop 02/03/2021, 2:29pm PST NEW
        GameStop is this decade's Radio Shack by blackwater 02/04/2021, 3:02pm PST NEW
            But I have a galaxy brain. NT by New Character: Galaxy Brain 02/04/2021, 4:44pm PST NEW
            How do I download 60GB of game in Wyoming with an ADSL and a BW cap? NT by The Happiness Engine 02/04/2021, 7:05pm PST NEW
                Blu-Ray was designed solely to stall the conversion from physical to streaming by real conspiracy talk 02/05/2021, 1:50pm PST NEW
                "We'll serve the parts of the country without internet" is a bad business model by blackwater 02/10/2021, 8:33am PST NEW
                    Which is why that's not their business model by The Happiness Engine 02/10/2021, 5:22pm PST NEW
            GameStop should become 1970's Radio Shack by Roop 02/04/2021, 11:02pm PST NEW
                Sounds nice in theory by BUT... 02/05/2021, 1:44pm PST NEW
                    Re: Sounds nice in theory by Vested Id 02/05/2021, 2:25pm PST NEW
                        Saw it a little at Best Buy today. by New Character: Galaxy Brain 02/06/2021, 9:31pm PST NEW
                That old guy is now hundreds of NT by Youtube tutorials 02/07/2021, 7:03pm PST NEW
                This was a beautiful post NT by Ichabod 02/07/2021, 10:37pm PST NEW
                I would unironically like to see you try to turn around GameStop. by blackwater 02/10/2021, 8:46am PST NEW
                    Re: I would unironically like to see you try to turn around GameStop. by Vested Id 02/10/2021, 10:07am PST NEW
                        Nah, we're all going to get hired by hedge funds and let GameStop burn. by blackwater 02/10/2021, 3:41pm PST NEW
                            You don't understand, I was being dead siris by Vested Id 02/10/2021, 4:36pm PST NEW
    DIAMOND HANDS NT by Caltrops News Network 02/08/2021, 11:03am PST NEW
        I hate the meme leaders almost as much as the hedge funds by I've got balls of diamond 02/11/2021, 5:21am PST NEW
            You're right by Ice Cream Jonsey 02/11/2021, 6:42am PST NEW
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