readytorunbook Chapter 179 Short selling by 140%, US stocks are ruthless too.
Chapter 179 Short selling by 140%, US stocks are ruthless too.
Jiang Feng has already notified Gao Pi and the others.
Buy large quantities of [GameStation] stock!
Furthermore, buying call options can be understood as an upgraded way to play stocks. By paying a certain margin, you can buy or sell a specified stock at a predetermined price at a predetermined time in the future (that is, exercise the option).
The leverage is higher, making it more like gambling.
Because options are the same as futures—
You can choose to settle the transaction.
Delivery can also be avoided.
If you really want to buy, then proceed with the transaction; if you don't really want to buy, then simply pay the difference.
It's practically an illegal gambling platform, no different from gambling!
Leverage of several tens of times is absolutely no problem!
The Sickle financial team received orders to immediately prepare billions of dollars and investigate relevant intelligence.
There's been a lot of buzz online about Citron Research's short-selling attack on GameStation.
Meanwhile, a forum for retail investors called [Wall Street Casino] also gathered a large number of angry retail investors.
They are often bullied by institutions.
When faced with huge sums of money, retail investors can only get fleeced!
Citron Capital is notorious for frequently using the internet to spread rumors, create alarmist statements, and incite speculative capital to short sell, which has bankrupted several small companies, forcing them to delist.
However, this time it was different. GameStation was a small company that had been losing money for many years.
But he was once a well-known offline game distributor.
It holds many people's memories!
Including Apple's largest individual shareholder.
This bigwig had just bought shares in [GameStation] when Citron Research shorted the stock, and the two sides went head-to-head.
The stock price is stuck at 10 yuan and fluctuates repeatedly.
Many retail investors rushed in to get revenge!
Fighting back against capital exploitation
Protect the game station
Citron Capital, used to its arrogance, didn't take these retail investors seriously and continued to increase its short-selling efforts.
They also released a short-selling report on [GameStation].
They claimed that its stock price was severely overvalued.
Gao Pi and his colleagues also loathe Citron Capital, this rotten piece of capital, for its despicable methods and utter shamelessness.
Gao Pi asked in the WeChat group—
[Tibada Yingjun (Gao Pi): Mr. Jiang, are you going to compete with Citron Capital, or do you have confidence in GameStation?]
[Nine Yin Contending for Essence (Jiang Feng): The target is Citron Capital. I've disliked them for a long time, and this time I'll teach them a lesson!]
[Jing Hou Jiayin (Hou Zhendong): Received]
[Ying Xiaosi Da (Lin Siying): Received]
The Sickle team immediately divided the work and cooperated.
Leveraged purchases of stocks in the stock market, including call options, are used to continuously increase positions and stabilize stock prices.
Citron Capital was also firmly pinned to the ground!
In his anger, he summoned even more capital.
violent sell-off!
Sell short like crazy!
[Lu Xiaofeng (Lu Na): @All members, I just received the latest news that Melvin, Castle Fund, and 72 Points Fund have also started shorting Game Station, and the amount of funds involved is huge.]
[Yi Jingzhi Cave (Feng Yi): Melvin?]
[Jing Hou Jiayin (Hou Zhendong): Fuck.]
[Ying Xiaosi Da (Lin Siying): Holy crap!]
Melvin was one of the companies that had previously suppressed them, which made Gao Pi and his team extremely angry, excited, and tyrannical.
[Gao Pi: Mr. Jiang, Melvin Capital was one of the companies that suppressed us in the past.]
[Jing Hou Jiayin (Hou Zhendong): Revenge!]
[Ying Xiaosi Da (Lin Siying): Revenge!]
[......]
[Nine Yin Contending for Essence (Jiang Feng): OK, we must get revenge. You guys spare no expense in buying up all the goods, we'll take whatever the other side throws at us.]
[yes]
[yes]
[yes]
Gao Pi and his team were determined and full of fighting spirit. No matter how much short selling was done by the various capital groups, they immediately bought up the goods.
If you sell, I'll buy!
If you sell, I'll buy!
These institutions borrowed large amounts of stock from securities firms and sold it on the market, but the price couldn't be driven down.
On the contrary, the stock was snapped up by retail investors.
Because someone discovered—
The short selling ratio of [GameStation] has reached 140%, with more short selling orders than circulating shares. It's absolutely outrageous!
Fuck
These bastards are inhuman!
Brokerages and institutions also colluded, lending stocks held by long positions to short sellers. After the short sellers sold the stocks, the long positions bought them back, and the brokerages lent them to the short sellers to sell again, repeating this cycle repeatedly.
Therefore, a short position of 140% was sold!
While such a sell-off can suppress stock prices, it also carries significant risks. If long positions are locked up and no longer sold, or even if all shares are liquidated from the market, the stock price could surge.
And short sellers can't buy stocks to close their positions!
Then it's not a matter of margin call...
A margin call occurs when stocks are forcibly bought and liquidated (or sold), but someone has to sell! If no one sells, what's the point of liquidating the position? That's when a margin call will happen!
Losing money, losing money, and even getting liquidated isn't the end of the story.
As long as the long positions are locked in.
Short sellers who can't close their positions are doomed!
Therefore, a large number of furious retail investors frantically bought into Game Station, engaging in a battle between bulls and bears with capital.
Citron Capital's track record of long-term success.
Arrogant and domineering
Extremely arrogant
They completely disregarded retail investors, instead focusing on clashing with Gao Pi and his group. It's unclear who they are!
Until the Sickle team's shareholding exceeded the limit.
It must be declared and disclosed.
The major short-selling firms finally discovered the identity of the Sickle financial team, and were shocked while also showing a hint of disdain.
"Isn't this the once-genius team?"
"Heh, just a defeated opponent."
"That's right, we just recently drove them into bankruptcy, and I heard they're now working for someone else's trading team!"
"These little dwarfs want to stir up trouble?"
"Continue to dump shares—"
They instinctively look down on Chinese people, after all, the Chinese stock market is just like that, it can't produce outstanding individuals.
The Chinese stock market is like pulling the plug on the internet.
What else can I do?
(￣へ￣)Hmph~
They love to mock the Chinese stock market, and they're quick to pull the plug and act like scoundrels. The people who make the rules are the ones who break them the most.
However, this time the situation is completely different!
No matter how many short positions are placed.
They were all taken over by others.
The stock price began to surge—
20
30
40
50
If they hadn't deposited more margin, they would have been liquidated and forced out of the market by now, but their losses have skyrocketed.
"Holy shit, how could this happen?"
"Damn it! Keep dumping!"
"We absolutely cannot let them hold on!"
"Fuck, dump the shares now! Call the brokerage, no, I'll go to the brokerage myself. I need to borrow more shares."
Citron Research, Melvin Bank, Castle Bank, Maple Forest Bank, and other big names in the short-selling camp panicked, suffering losses of up to billions!
这可怎么办啊！(?4?0?4?7?4?3)
The only option is to borrow money and add a margin deposit.
And continue shorting.
Admitting defeat is absolutely out of the question.
I'd lose a fortune if I closed my position now!
Brokerages are also bloodsuckers. Now the battle between bulls and bears in [Game Station] has escalated. Bears have to borrow the long stocks held by them to short sell. And they can just arbitrarily ask for exorbitant interest rates.
The interest rate for securities lending increased several times over.
30%
.