I won't pretend to be smart enough to understand what is happening with r/WallStreetBets and Gamestop. Because of this, anything I say on this topic should be taken as sourced from the financial rube that I am. Most of my knowledge of any of these topics come from a self-directed crash course over the last week; nearly all of my leisure reading has been narrowed to reading about Melvin Capital, a hedge fund I'd never heard of until Friday, or about Andrew Left of Citron Research, who I knew of but knew nothing of at the same time, or reading the reaction of the most mainstream of analysts, the boisterous Jim Cramer. But I do have thoughts I'd like to record for posterity, so here they are.

The highest of all high-level overviews: r/WallStreetBets is a subreddit that has organically grown into something special. It's a large group of retail investors sharing information to help overcome a complex market that slants heavily towards market managers. The market needs winners and losers to exist; so often the retail investors are the losers. Within r/WallStreetBets GameStop stock, $GME, has gained an obscene amount of momentum. The first, and most epic, of GME investments came from u/DeepFuckingValue, who in a little over a year has turned $50,000 into close to $40,000,000 on GME. u/DeepFuckingValue has been posting updates everyday and it's been fun to see. Short selling is essentially betting that stocks will lose money, the opposite of buying a stock low and selling high. As GME rose, Melvin Capital shorted an obscene amount of GameStop stock. Because of the nature of the short, and this is where my ignorance really shines through, it was required they disclose to the SEC the amount and nature of the short. With this information public, the r/WallStreetBets "boys", a constantly used term entirely reflective of the very bro-culture of the subreddit, built the most organic rise of a stock ever seen. Lots of regular, small retail investors are making life-changing money. Melvin Capital lost more than $2.5 billion, but have recently announced they've covered all their losses. They're down 30% for 2021, which is absolutely insane considering it's January. Andrew Left of Citron Research also shorted GME. Left, through the Citron twitter account tweeted last Thursday, "Tomorrow am at 11:30 EST Citron will livestream the 5 reasons GameStop $GME buyers at these levels are the suckers at this poker game. Stock back to $20 fast. We understand short interest better than you and will explain." The next day he tweeted, "$GME going to $20 buy at your own risk." GME is currently over $300. Today, he posted a video saying everyone is too mean to him and that he's actually the first person to be anti-establishment so r/WallStreetBets can actually thank him. He's also sad that people are ordering pizzas to his house after midnight and texting him bad words and calling him mean things. These people use billions of dollars to end the livelihoods of other people because that's part of the market; mean words are just too much too bear. Steve Cohen has rescued Melvin Capital with a $2 billion bailout and Andrew Left isn't going anywhere, but it sure seems like short selling has been forever altered. Nearly every notable short seller, even the ones making money on GME, are calling for regulations and investigations because they know it could've been them. This is because if market managers are winning, well that's just how the system works. The retail investors, so often screwed, simply don't "respect the market" enough. Jim Cramer is the only person I've seen call out the recklessness of Melvin Capital. Retail investors lose their livelihoods? Well, that's simply part of the game. A reckless hedge fund loses $2.5 billion? We have to re-write the rules so this doesn't happen again. See how this works?

I have more to say and no time to say it. Every time a user from r/WallStreetBets posts their massive gains, there's a good natured outcry from their peers, one of love-inspired jealously, "fuck you!" To all of the users at r/WallStreetBets who beat the system and have made life-changing money, I'm so happy for you. Fuck you.

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