Melvin Capital shorted ￼ Gamestop's stock. All of it. Actually more than all of it.... 140%
It drove the price of the stock down to ~$6.
If Gamestop stock had stayed at ~$6,
Melvin Capital was going to make a **** ton of money.
What Melvin Capital did not count on...
A group of regular Joe's got together and took their $600 stimulus checks and bought Gamestop stock.
The price increased￼ to over $300
Good for the average Joes.
BAAADDD for Melvin Capital.
Why? Because Melvin Capital now has to pay out money(that they don't have) to their investors on that short bet tomorrow.
In the interim...
The White House called the big brokerage houses(Robinhood, eTrade, Ameritrade...) and told them to STOP trading Gamestop before Melvin Capital lost any more money.
Screw the regular Joe's, right,? The White House is busy trying to protect Melvin Capital.
As it stands, Melvin Capital (MC)could go bankrupt.
Here's the thing..MC manipulated Gamestop stock, made the value of Gamestop decline, planned to make a TON of money for their elite clientele. This is something that happens routinely on Wallstreet. They think it's just business.
But when the average person gets in the way, all hell breaks loose.
I'm not feeling sorry for Melvin Capital.
I AM however, applauding the Joe's!
I'm happy they made money AND helped Gamestop.
Here's what u should ask yourself...why is your government protecting big business while screwing the average person?
If they hadn't stopped the trading ...who knows how much the Joes would have made.
What an AWAKENING.
We sure are getting an education about the people who are supposed to be representing WE THE PEOPLE.
IN BACKHANDING CRITICS, JASON WHITLOCK DOUBLES DOWN: LINKS BLM, DEMOCRATS, AND THE KKK