“People want an authority to tell them how to value things, but they choose this authority not based on facts or results.” – Dr. Michael Burry
Weaponized Trading
The Covid-19 pandemic initiated a planned long-term American Perestroika, a “restructuring” of the American economy and financial system. Wall Street and retail investors engaged in a war of attrition during the opening months of 2021. Amateur day traders with weaponized autism made seasoned Wall Street investors look like fools. Granted Wall Street learned a rule the rest of the Internet already knows, do not tangle with weaponized autism.
The Usual Suspects on Wall Street – a rootless international clique of Hedge Fund Investors, and Capital Investment consultants lost tens of billions of dollars to a rag-tag army of day traders organizing on social media, sending the stock GameStop (GME) soaring to an intraday high of $483 per share. The GameStop Insurrection rocked the U.S. financial system one of the biggest disruptions since the Covid-19 weaponized virus, or the 2008 market crash – also caused by the same rootless international banking clique.
Amateur traders have advantages over Wall Street professionals: amateurs can invest long , with no legal obligations to investment firms or clients investing large capital. Hundreds of thousands of people amassed small trades of GameStop into larger pools of capital, hedging each other into weaponized autism. Retail investors now know, when their weaponized autistic trading synchronizes, individual trades trigger market-swinging sentiment.
“The world is divided into three kinds of people: A very small group that makes things happen; a somewhat larger group that watches things happen; and a great multitude that never knows what has happened.”
-Nicholas Murray Butler
Enter Dr. Michael Burry
Physician Michael Burry of Scion Capital made a personal profit of $100 million and a profit for his client investors of more than $700 million from 2000-2008. Scion Capital ultimately recorded returns of 489.34%, Burry predicted correctly that the real estate market would collapse by 2008, later liquidating his positions by April 2008 before the mortgage crisis.
In summer 2019, Burry opened a position of two million shares, advising GameStop executives; “GameStop could pull off perhaps the most consequential and shareholder-friendly buyback in stock market history with elegance and stealth,” after disclosing his purchase.
News of Burry’s trade caught social media fever among amateur traders. In September 2019, Keith Gill, a 34-year financial advisor in Massachusetts, opened a $53,566.04 position, purchasing 1,000 call options on the company and posting his position to Reddit on Sept. 8, 2019 under the pseudonym “DeepFuckingValue,” galvanizing millions of social media followers. By July 2020, he was publishing videos to YouTube under the pseudonym “Roaring Kitty.”
Due to the Chinese Coronavirus pandemic and declining in-store video game sales, GameStop ended 2020 as one of the world’s heavily shorted stocks. Burry exited his positions in GameStop according to Forbes, in fourth quarter 2020. In a later deleted social media post, Burry called the squeeze “unnatural, insane and dangerous.”
The Big Squeeze
“The point is, ladies and gentleman, that greed, for lack of a better word, is good.” (“Wall Street” 1987)
In August 2020, GameStop (GME) bottomed out at $2.80 a share. As mentioned, GameStop was already in financial dire straits with the digital distribution of video games, compounded by the Chinese Coronavirus shutdown of 450 stores in 2020. Smelling the blood in the markets, Wall Street hedge fund “investors” circled and shorted the company’s stock.
Shorting a stock means betting a company’s stock value will decline and trying to vampirize it. Investors bet a company will fail, vampirize the company’s stock shares – GameStop shares, in this case – Hedge fund “investors” borrowed more GameStop shares from brokers than there were in existence.
Retail day traders and dark web Gamers realized that if they bought up all GameStop stocks in existence holding long, Hedge Funds became obligated to billions of dollars worth of shares, but there wouldn’t be any supply on market demand. GameStop’s stock exploded, adding to the coffers of the dark web’s amateur traders and Retail investors.
Major financial networks scrambled to make sense of the sudden and unprecedented GameStop Short Squeeze. Wall Street responded with hedge fund bailouts, multi-billion-dollar liquidations, broker bankruptcies, and SEC “investigations.” Hedge Funds were unable to buy their way out of their short positions.
Hedge Funds were desperate to get out of their financial obligations. GameStop stock surged 1,500% in nine months. The trade volume skyrocketed and volatility skyrocketed.
Nasdaq briefly suspended trading of GameStop, claiming it was necessary to stop “manipulation” by amateur day traders. Legacy brokerages like TD Ameritrade, E*Trade, Schwab shorted their clients provisionally banning GameStop trading. Trading platforms popular with amateur and day-traders like WeBull, RobinHood, EToro, Interactive, Vanguard and a host of other brokerages all banned, pro tempore, GameStop trading. Fidelity was the only brokerage that did not ban GameStop trading.
Dedicated amateur investors dug into the Hedge Funds behind shorting GameStop discovering a financial link between brokerage platform Robinhood and Citadel Securities. Retail traders called foul, which led to Congressional hearings, including one where Robinhood CEO Vlad Tenev, Citadel CEO Ken Griffin, and Melvin Capital’s Gabriel Plotkin denied wrongdoing.
After GameStop shares traded from $118 to a June 8 high of 344.66 since the all-time-high in late January 2021. After the Big Squeeze of 2021, sentiment among amateur traders both veterans of the original Squeeze and newcomers seeking fortune shifted to a “Mother Of All Short Squeezes” – yet to occur. The “MOASS,” according to amateur traders, would be an infinity squeeze that would send shares rocketing to theoretically infinite prices.
The GameStop cult was born on the heels of both market “squeezes.”
Occupy GameStop
The stock market works just like the fractional banking system. They are using loans and assets and are exchanging them out to generate growth with assets they don’t have. Once you wrap your head around that the stock market is just a scaled up version of this, you can see why such instability is rampant in the system as you have chains of assets leveraged against each other.
As of Spring 2022, U.S. inflation was at a record 7.9% likely closer to 9% or higher given the criteria of gas, energy, grocery and cost of living. Oil jumped to over $100 a barrel pumping gas prices to record highs in America, the Bear Market saw the Fed aggressively raising interest rates, pointed to a severe economic recession as early as summer 2022, a housing market bubble and potential 2008-redux market crash.
With the U.S. economy teetering on the brink of crash in Biden’s America, GameStop inspires cult-like mentality awaiting a “MOASS.” Amateur retail traders using weaponized autism share the “MOASS” sentiment rallying on social media.
A new CEO and CFO, paired with social media cult-backing could not stave off missed earnings from the second, third, and fourth quarter un 2021. For the 2021 holiday quarter, GameStop announced a loss of $147.5 million, or a loss of $1.94 per share, based on $2.25 billion in revenue. Market estimates were for $0.85 for the quarter. In context, during 2020, GameStop brought in a profit of $80.3 million, $1.23 per share.
The “MOASS” social media cult expects an infinity squeeze to play out as GameStop adjusts to changes in gaming technology, customer service, expansion of brand relationships, and Crypto NFTs.
“The most valuable commodity I know of is information.” (“Wall Street,” 1987)
Interactive Brokers (an international investment firm) chairman Thomas Peterffy stated that the U.S. financial system was under critical stress during the GameStop squeeze, while the general public remained unaware. Peterffy claimed the financial system came dangerously close to the collapse. , Dr. Michael Burry in a deleted social media post called the GameStop squeeze “unnatural, insane and dangerous.”
No market mover/manipulator went to prison for the 2008 market crash, or the 2020 Perestroika Recession due to the Chinese Coronavirus pandemic. Nothing has changed since 2008, the U.S. economy is running on fumes since 2020; a national economy must never be paused. America paused its economy for a year-and-a-half.
The market will manufacture more Short and Gamma Squeezes, but the usual suspects, the market moves/manipulators face a bigger crisis in the form of a pissed off Bear.
Basic Information
Bloomberg terminal screenshots and FUD
https://archive.is/Q2OKd
https://www.forbes.com/sites/george
http://finra-markets.morningstar.co
>Anons research google doc
https://docs.google.com/document/d/
What will happen if Citadel becomes insolvent?
DTCC, which has $63 trillion, will pay.
What will happen when DTCC becomes insolvent?
CEDE & Co (banks, brokers, mutual funds and insurance companies), which has $500 million, will pay. And the government will print money.
https://www.unseenopp.com/is-powell
https://archive.is/1abkq
DTCC rule changes
https://www.dtcc.com/legal/sec-rule
NSCC-2021-801:
- Enables DTCC to collect SLD from its members on a daily basis where necessary, instead of only in advance of options expiration activity periods (pg 4, section 10)
- Members that are jewishly responsible for increases in the daily liquidity need (including increases based on forecasted expiration of options) must supply additional funding (pg 77, SEC. 7)
Real-Time Trades
https://www.nasdaq.com/market-activ
https://eresearch.fidelity.com/eres
Trade Halts
http://www.nasdaqtrader.com/Trader.
Sources:
Melvin Capital Is Facing Nine Lawsuits Related to the GameStop Frenzy
https://archive.ph/Eag6n
CNBC Posts Edited Video from House Financial Services’ GameStop Hearing, Deleting Dennis Kelleher’s Key Testimony Criticizing Citadel
https://archive.ph/RISfo
GameStop Short Sellers Close $744 Million Of Positions, AMC Bears Lose $2.8 Billion In June 2021
https://archive.ph/9M8PN
The real shock of the GameStop mania was that it didn’t happen sooner
https://archive.ph/5ZDRE
NASDAQ temporarily shuts down stock trading after internet trolls destroy hedge fund with GameStop stock
https://archive.vn/DIydF
Hedge fund Melvin Capital lost 49% on its investments in Q1 -source | Nasdaq
https://archive.ph/y0wIV
Benford’s Law test shows high likelihood of fraudulent manipulation of GameStop prices
https://archive.ph/sDqUS
Interactive Brokers chair says financial system came ‘dangerously close’ to failure during GameStop mania
https://archive.ph/YpQMr
