GameStop | Reddit | WallStreetBets | Gamma Squeeze
Retail Investor Driven Short Squeezes Will Burn Wall Street To The Ground
The GameStop short squeeze frenzy might just destroy the social contract Americans have with traditional financial markets, and perhaps serves as poetic justice for the suicide of Aaron Swartz, one of Reddit’s cofounders
If you don’t know who Aaron Swartz is let me catch you up real quick. A brilliant computer programmer and entrepreneur who helped develop RSS feeds and later became a co-founder of Reddit, killed himself after being relentlessly persecuted for stealing academic journals from MIT and uploading them for free online. The illegality of his “crime” is murky considering he had a guest account for MIT’s network, but the Obama administration wanted to make an example out of him as a high profile violator of the Computer Fraud and Abuse Act.
Swartz helped develop the Creative Commons organization and felt strongly that information and knowledge should be shared freely online during the internet era. He penned his “Guerilla Open Access Manifesto” to justify his position that information is power and needs to be shared openly with all people during the forthcoming internet age. Sound familiar? Less than a decade later, information sharing on a platform he helped create would bring Wall Street’s scumbag hedge funds to their collective knees. Shining a bright light on America’s broken financial system that separates the wealthy few from the broke and broken hordes that want to bleed them dry.
The GameStop short squeeze isn’t just a bunch of idiots throwing crap at the wall until something sticks. I mean some of it is, they’ll tell you that themselves, “apes together strong” is the motto after all. But the reason GameStop exploded like it did, is because of something fundamentally flawed in the system itself. A HEDGE FUND SHORTED GAMESTOP WITH MORE SHARES THAN ARE AVAILABLE IN THE MARKET, full stop. They borrowed and sold shares that do not exist, period. Stupid, should be illegal. Certainly more illegal than stealing some books and uploading them to the internet.
If everyone just buys and holds GameStop, these funds will never be able to purchase back the shares that they sold with short positions. The price will sky rocket. This is now just simple supply and demand economics. The hedge funds need the price to go down or they go bankrupt end of story. They’re over leveraged, it’s a brilliant move, backed by the momentum traders who want to jump on for the ride.
At the heart of this momentum is something else that's been simmering since the 2008 crash. Most of these traders are millennials who watched their parents 401k accounts vanish overnight during the housing market collapse. Families all over the country watched life savings vanish. We have not forgotten, we really are out for blood, this isn’t about money anymore, this is class war.
This sentiment is what petrified them, and that is why Robinhood wouldn’t let retail investors purchase these stocks on January 28, 2021. But they didn’t remove the tickers from their platform entirely, they allowed retail investors to sell their shares and out of fear a lot of them did, crashing the price. I wonder who was buying them? Ding Ding Ding, the hedge funds were snapping them up to get out of their short positions when the price bottomed out. People who were playing with margin money saw there positions closed out at GameStop’s daily low. Robinhood crashed these stocks so their hedge fund backers, mainly Citadel and Melvin Capital, could get out of the hole they dug for themselves. This is obvious collusion, conspiracy, and large scale fraud, social contract completely destroyed, market crash may ensue. The cryptocurrency age is right around the corner and the old guard will exit stage left.
The same ruling class that persecuted Aaron Swartz, out of fear that his ideologies would level the playing field, are now getting their teeth kicked in by a bunch of degenerates sharing information freely on a platform that Swartz helped create. Call it fate, call it poetic justice, call it the reaper coming for all the bullshit Wall Street’s sown over the years. Call it whatever you want, just remember to hold the line, this apes got diamond hands.
