Started with HF shorting the company, which is allowed and part of the market
But then the shorting became cyclical and there were more stocks in open short positions than there are stocks in existence
So a few redditors started to buy the stocks to "squeeze" the short position (u/deepfuckingvalue)
As the stock rises in price from the purchases, the people in the short position loses money forcing them to close their short position which drives the price up
This snowballed into a whole community of redditors on WSB to collectively buy this stock and drive the price from 5to300+ in one week
The dramatic jump in price forced some HF to close their short position and allow retail investors to profit greatly
Then, it seemed like Wall Street got together and formulated a plan
First, Robinhood froze all transactions of these "meme" stocks for a two days. Then it limited the daily purchase to only 1 per user. These two things significantly stalled the buying momentum and stagnanted the price
Following this, the price started to dive down with very low traditing volume
One explanation is this is a result of HF selling to each other to drive the price down and scare retail investors into selling their stocks
So as of today, the price dropped to below $100 a share.
Mentality on WSB seems to be to HODL, because as long as they don't sell the shares eventually the short contracts will expire and the HF are forced to buy at whatever price the retail investors want to sell at
This event is now a battle between the little guys and the big guys of wall street, between the normal joes and billionaires
Interesting point from Jordan Belfort
People will lose lots of money from this and be sure to not invest in more than you can afford to lose
Don't try to get in at the start just make sure to get out before it ends
Mark Cuban had an AMA on reddit
He seems to be encouraged by the
Retrospective::
One week ago: [[January 26th, 2021]]
One month ago: [[January 2nd, 2021]]
One quarter ago: [[November 2nd, 2020]]
One year ago: [[January 2nd, 2020]]
Daily Stoic::
If we don't like others telling us what to do, why do we let our impulses do the same?