1/
Amateur investors from reddit took on large hedge funds by betting against them, and just as they started winning Discord banned their server. The excuse they gave was.... *Hate Speech*
So, lets talk about power, information, and the blue check industrial complex
A thread🧵
Amateur investors from reddit took on large hedge funds by betting against them, and just as they started winning Discord banned their server. The excuse they gave was.... *Hate Speech*
So, lets talk about power, information, and the blue check industrial complex
A thread🧵
2/
So what happened?
Several large investors "shorted" Game Stop stock. Shorting is a way to bet against a company if someone thinks a company is overvalued. They way a short works is simple: if the stock price of the company someone "shorts" drops, whoever shorted it makes money
So what happened?
Several large investors "shorted" Game Stop stock. Shorting is a way to bet against a company if someone thinks a company is overvalued. They way a short works is simple: if the stock price of the company someone "shorts" drops, whoever shorted it makes money
3/
Shorting is how investors tell the market they think a company is overvalued, or if they think a company is fraudulent. For example during the Enron accounting fraud scandal in 2001, short sellers were among the first to raise red flags about Enron by betting against Enron:
Shorting is how investors tell the market they think a company is overvalued, or if they think a company is fraudulent. For example during the Enron accounting fraud scandal in 2001, short sellers were among the first to raise red flags about Enron by betting against Enron:
4/
So, if you think a company's stock price will drop, you can bet on that by "shorting" the stock by borrowing it selling it at a high price, then buying it back at a low price and pocketing the difference."
This is what several large hedge funds had been doing with Game Stop.
So, if you think a company's stock price will drop, you can bet on that by "shorting" the stock by borrowing it selling it at a high price, then buying it back at a low price and pocketing the difference."
This is what several large hedge funds had been doing with Game Stop.
5/
They though Game stop was a dying brick and morter store that would lost its business to online retailers like Amazon, so they bet that it's stock would drop.
And these are LARGE hedge funds. Melvin Capital is a 12 Billion dollar firm.
This is where Reddit comes in...
They though Game stop was a dying brick and morter store that would lost its business to online retailers like Amazon, so they bet that it's stock would drop.
And these are LARGE hedge funds. Melvin Capital is a 12 Billion dollar firm.
This is where Reddit comes in...
6/
Basically, reddit disagreed.
6 months ago this post appeared on reddit arguing Game Stop was actually going to be fine,and the price of their stock would go *UP* not down.
Over time, some people on reddit began to agree with this take, and they began to invest in Game Stop
Basically, reddit disagreed.
6 months ago this post appeared on reddit arguing Game Stop was actually going to be fine,and the price of their stock would go *UP* not down.
Over time, some people on reddit began to agree with this take, and they began to invest in Game Stop
7/
This pushed price of the Game Stop stock up. In June it inched up from about 3.94 to about 17$ in January then, in the past 3 weeks its rocket up to $347 per share
I can't begin to describe the absolute *BLOODBATH* this created for large hedge funds that bet against Game Stop
This pushed price of the Game Stop stock up. In June it inched up from about 3.94 to about 17$ in January then, in the past 3 weeks its rocket up to $347 per share
I can't begin to describe the absolute *BLOODBATH* this created for large hedge funds that bet against Game Stop
8/
As of right now, hedge funds that bet against Game Stop have lost 5 BILLION DOLLARS. And the bloodbath isn't over.
And this is where we get to the blue check industrial complex.
[*Addendum* I'm informed reddit has had people argue game stop would rise for a year. See pic 2]
As of right now, hedge funds that bet against Game Stop have lost 5 BILLION DOLLARS. And the bloodbath isn't over.
And this is where we get to the blue check industrial complex.
[*Addendum* I'm informed reddit has had people argue game stop would rise for a year. See pic 2]
9/
You see, large financial institutions, hedge funds, and other assorted billionairs and money managers manipulate the market ALL. THE. TIME.
For example, George Soros once helped crash the value of the British pound.
He made a billion Dollars in a month.
You see, large financial institutions, hedge funds, and other assorted billionairs and money managers manipulate the market ALL. THE. TIME.
For example, George Soros once helped crash the value of the British pound.
He made a billion Dollars in a month.
10/
Large firms often use their size to make money at the expense of other people.
But now that it's a group of regular people on reddit teaming up to make money *NOW* it's a problem.
And it's a problem because the people doing this are not acceptable to the blue check class...
Large firms often use their size to make money at the expense of other people.
But now that it's a group of regular people on reddit teaming up to make money *NOW* it's a problem.
And it's a problem because the people doing this are not acceptable to the blue check class...
11/
You see, r/wallstreetbets, the subreddit where this started is not the sort of people the journolist class would want to spend their time with.
It's the most foul mouthed bro'd out bunch of dudes who ever behaved like a bunch of dudes.
I mean, this is their logo:
You see, r/wallstreetbets, the subreddit where this started is not the sort of people the journolist class would want to spend their time with.
It's the most foul mouthed bro'd out bunch of dudes who ever behaved like a bunch of dudes.
I mean, this is their logo:
12/
So instead of cheering a story about the little guy taking on Goliaths of the financial industry and teaching them a lesson about gambling with people's lives, Discord bans them for hate speech while blue checks/journolists insinuate that they're white supremacists and Nazis
So instead of cheering a story about the little guy taking on Goliaths of the financial industry and teaching them a lesson about gambling with people's lives, Discord bans them for hate speech while blue checks/journolists insinuate that they're white supremacists and Nazis
13/
There is also the parade of articles and experts calling for an end to be put to this immediately. Of course, none of them has any idea how to react to what is going on because they do not understand it....
There is also the parade of articles and experts calling for an end to be put to this immediately. Of course, none of them has any idea how to react to what is going on because they do not understand it....
14/
This whole thing can be summed up in a meme:
This whole thing can be summed up in a meme:
15/
Our institutions have moved away from solid and grounded practices and are increasingly adopting the idea that "appearance is reality."
To regular people it looks like elite institutions manipulate whatever situation they are in to get their way regardless of the truth...
Our institutions have moved away from solid and grounded practices and are increasingly adopting the idea that "appearance is reality."
To regular people it looks like elite institutions manipulate whatever situation they are in to get their way regardless of the truth...
16/
Hedge funds are not the only party guilty of using control of information to try to manipulate people. This happens all the time. Lets look at some examples:
Hedge funds are not the only party guilty of using control of information to try to manipulate people. This happens all the time. Lets look at some examples:
17/
1. Merriam Webster changes the definition of "sexual preference" in order to make an accusation by Mazie Hirono look right
2. Dictionary.com redefines the term "court-packing" to help obscure a plan to expand the Supreme court
3. Google Redefines the word "bigot."
1. Merriam Webster changes the definition of "sexual preference" in order to make an accusation by Mazie Hirono look right
2. Dictionary.com redefines the term "court-packing" to help obscure a plan to expand the Supreme court
3. Google Redefines the word "bigot."
18/
Newsweek went back and edited an article from **2015**
in order to cover up the fact that it was being hypocritical in a hit piece it published on a U.S. congressman.
Newsweek went back and edited an article from **2015**
in order to cover up the fact that it was being hypocritical in a hit piece it published on a U.S. congressman.
19/
Here we see both the Washington Post and New York Times writer/editor Nikole Hannah Jones redefine the term "whiteness" and so that it can be applied to *black* people.
You can't make this stuff up.
Here we see both the Washington Post and New York Times writer/editor Nikole Hannah Jones redefine the term "whiteness" and so that it can be applied to *black* people.
You can't make this stuff up.
20/
@lwoodhouse points out New York Times tech reporter Taylor Lorenz had nothing but condescension for /wallstreetbets
Of Course, Taylor grew up in Greenwich Connecticut (known for being home to many hedge funds) and went to a private Swiss boarding school. Perhaps that's why?
@lwoodhouse points out New York Times tech reporter Taylor Lorenz had nothing but condescension for /wallstreetbets
Of Course, Taylor grew up in Greenwich Connecticut (known for being home to many hedge funds) and went to a private Swiss boarding school. Perhaps that's why?
21/
As you can see, it really looks like people in elite institutions have given up on trying to tell the truth, and have instead decided to go all in on trying to manipulate society for their benefit.
And *THAT* is the bluff that r/wallstreetbets is calling...
As you can see, it really looks like people in elite institutions have given up on trying to tell the truth, and have instead decided to go all in on trying to manipulate society for their benefit.
And *THAT* is the bluff that r/wallstreetbets is calling...
22/
This condition where appearance matters more then reality, where what you can get society to believe is what is true, where people believe truth is a matter of who controls the narrative and the discourse....
That condition has a name: It is called postmodernism.
This condition where appearance matters more then reality, where what you can get society to believe is what is true, where people believe truth is a matter of who controls the narrative and the discourse....
That condition has a name: It is called postmodernism.
23/
We should not be surprised when, as I have shown, journalists, academics, and institutions would rather rewrite past articles and change the meaning of words then alter their beliefs in the light of new information.
Narrative over truth.
We should not be surprised when, as I have shown, journalists, academics, and institutions would rather rewrite past articles and change the meaning of words then alter their beliefs in the light of new information.
Narrative over truth.
24/
And we are living is postmodern times and the ideas of postmodernism hold sway in our institutions and public life.
I'm not sure where this goes, but I know in the long run reality wins, and r/wallstreetbets just made large group of hedge funds crash on the rocks of reality
And we are living is postmodern times and the ideas of postmodernism hold sway in our institutions and public life.
I'm not sure where this goes, but I know in the long run reality wins, and r/wallstreetbets just made large group of hedge funds crash on the rocks of reality
25/
They made foolish bets and tanked Game Stops stock for fun and profit, and r/wallstreetbets called that bluff....hard.
By the way, for what it's worth....
I think r/wallstreetbets is correct.
They made foolish bets and tanked Game Stops stock for fun and profit, and r/wallstreetbets called that bluff....hard.
By the way, for what it's worth....
I think r/wallstreetbets is correct.
26/
Welcome to postmodernism, where professional financial institutions lie and its left to internet message boards to call the bluff.
/fin
Welcome to postmodernism, where professional financial institutions lie and its left to internet message boards to call the bluff.
/fin
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