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I don’t know.. I just can’t see a small group of traders driving the price to 200+. They don’t have that much capital. There had to be some other big money behind it pushing it up. This seems like the classic pump and dump penny stock trade but at a much larger scale.
Retail isn't just a small group anymore, everyone has access to stock accounts with zero commission and dreams of hitting a grand slam. Adding to this is that we have been in an uptrend so long that most have not experienced any loses. I have friends and family sending me messages that they saw GME on the news and decided to buy some stock or calls.
You add that to the insane short interest in this stock and the market makers hedging themselves by buying tons of stock to cover all the calls they are selling and its the perfect storm. Of course there are probably other hedge funds that see blood in the water and wouldn't mind taking a shot at Melvin, Citron, Citadel, Point 72 and whoever else might have gotten caught short. Pretty sure even Michael Burry was long Gamestop.
Do retail/WSB traders really have that much coordinated collective power? I think various hedge funds are going along with the narrative to scapegoat retail traders. I'm just assuming you need hundreds of millions $ to wage a war like this. Most retail have less than $10MM, and the majority are under $1M.
1. If these people think collectively they can buy random 'dead' stocks and play against hedge funds to 'drain' them, then there are chances they will go for more similar stocks in the future.
2. Try doing this against ES and see what happens.
On a similar note Mike, forgot the name of that person, he's also a legendary short seller. He is short for Tesla since a while now. I bet he will have to exit sooner or later because it doesn't look like Tesla is going short anytime, especially with Musk being world's richest person.
