Michael Burry (Big Short) Had Already Bet Huge on Gamestop + Robinhood Business Model + Censorship + HIVE DeFi + Other WallStreetBets Coverage

in LeoFinance3 months ago

I wasn't about to write much about what was going on because I didn't have enough time to go through enough material and make a more detailed post. I was following the more crypto-like events of the stock market. I'm all in on crypto and my recent gains came from my cryptocurrency investments. What I'm happy about the current scenario is all these things that have been coming out and getting revealed to the general masses (or "sheep"/"normies" if you want to call it that).

I was busy with some things IRL and I wasn't in a mood for writing a lot. But sometimes, what Charles Bukowski talked about writing comes to play. I have bunch of work to do. But I'll try to do my best here and help you guys as much as possible.

This Was Shocking!!!

I wasn't shocked by the limits on trading that were put on. We've come pretty close to this before and finally many brokers are showing their true face and their allegiance. What shocked me was how aggressive all of this was. When I looked at the reports of other people, the numbers were much different. They they called how the limits were made to go even lower.

This is What I'm Seeing Now

These numbers are far far lower than the numbers I saw on streams and other reported videos while laughing at these poor souls who didn't have access to true DeFi.

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Watch Live Trading Recorded As Events Unfolded

I'm happy to have found Brian Jung an year ago. He did an excellent job documenting the events and trade. Of course I didn't watch all ~20 content. I watched some live and watched some recorded. Let's hope none of these videos get deleted from YouTube. If you can have backups of thee videos for historical purposes, I strongly encourage it.

It Was NOT About The Memes

There were strong fundamentals involved. The original investment thesis could be understood by anyone who understand the basics of supply & demand + what it means to short a stock. All I had to know was that Gamestop stock was short over 140% and the company was actively trying to make things better and had solid plans in the works.

It Was Predicted By Michael Burry (Big Short - Housing Bubble)

Cooper Academy is a channel I came to love mainly because they give detailed breakdowns on what various high profile investors are investing in. I found out about Gamestop about roughly half an year ago

Gamestop Was Michael Burry's Biggest Position

This is the exact video I watched. This is the exact place I thought Gamestop might have a chance. I didn't expect what went down these few days. But I do have the bragging rights to say I had already known about Gamestop being good. 140% short is asking for a short squeeze and poor stock exchanges of 20th century ways are not even maintaining a 24/7 trading scheduling.

This Clown World is The Best Marketing DeFi Can Have

I have been calling for the HIVE community to fund the DeFi proposals by @aggroed and @disregardfiat exactly because we can position ourselves at a great light when an event like this happens. We will have a 24/7 trading platform with no asset trading being controlled. You will not be told when and how much you can buy or sell. On top of that you will have a place to talk about all your investments without being censored.

Banned for "Hate Speech"

Just as liberal are not really into freedom these days, "Hate Speech" is not really bout hate; but simply about speech "they" don't like. If you call people for genocide or to burn buildings or send those with certain political beliefs into concentration camps, its not treated with the same weight as bunch of people gathering up with their research on a public forums (instead of behind closed doors) and say, let's pump this because the short squeeze is going to be a thing.

Bonus on Censorship & Hypocrisy


How Robinhood Makes Money

I have never liked Robinhood. It was free trading and they setup the entire brokerage firms to compete with "free" by making their own products free. It can only mean that "you" were the product. That's not 100% true. What really was sold as the product was your trades:

Robinhood: The Facebook of Finance

People were Realizing This Before The "Normies" Picked Upon The Truth

When they screwed up on one of the biggest trading days, there were some evidence pointing out to the whole mess being cased by Robinhood not being programmed to handle leap years! This is not confirmed, but I considered it an extremely plausible theory at the time. I still stand by this theory.

We Are Probably Going To See A Movie on This

The Big Short (2015) was one of the greatest "Based on a True Story" movies ever told. It was a masterpiece in the way the movie handled most things. There were many things left out, but many of the important things were covered well. Maybe Michael Lewis would write a book about this.

A Crowd Sourced List: Can I Trade It?

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Got to https://canitradeit.com to find a list of places that allow you to trade your stocks with the money you own as you see fit. Keep in mind that these companies could still place limitations on how much you can trade. After all, they are not DeFi. They are decades behind the kind of things we have become accustomed to.

Did I Write Too Much

I wanted to finish this off as quickly as possible. But the words keep pooping up and I've got days worth information which I have consumed (while dealing with many other things going IRL) and I had to get as much of this out as possible. I'm sorry if I'm throwing too much content at your face. I will try to summarize these things before closing.

  • $GME bet was based on solid fundamentals
  • The stock was short over 140% doing wonders for "Suppl& Demand"
  • People like Michael Burry were already huge on $GME for a long time
  • Robinhood is exactly what any sensible financially literate person would expect them to be (Facebook of the finance industry)
  • Other brokers are showing their true colors too
  • Some other companies are over-shorted or ready for a hype train
  • Be careful when trading these (not all of them have great fundamentals and similar short squeezes)
  • "Hate Speech" is being used to censor financial education
  • Save the videos/articles - more censorship could be coming
  • Institutions are now telling what people can buy or sell (not any different from what governments have been doing for a long time)
  • https://canitradeit.com might help you
  • Lawsuits are happening
  • This is all a great marketing backdrop for DeFi
  • Censorship is going to be a goldmine for HIVE (and specially @leofinance
  • HIVE is way too late for DeFi - Wake up and support @aggroed and @disregardfiat on DHF
There will be a movie :-)

Happy Investing!

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I have seen "The Big Short" again today in homage to this week battle of main street vs. Wall Street. It is really interesting to review it again with recent environment. And I've heard from a lot of sources that the book is really good, so I really need to get it somewhere.
And yes, it will be a movie about this week happenings. We were here to witness it!

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I have not read the book. Moneyball (2011) is a movie based on another book by the same author. It is actually the reason I was hyped for and watched The Big Short (2015). Just keep in mind that Moneyball (2011) was not as great as The Big Short. It is still one of the best sports movies I have watched.

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Moneyball is a little masterpiece, the Brad Pitt character is fantastic. Probably, with Any Given Sunday, my two favourites sport movies.

I haven't seen the movie. Oliver Stone is one of my favorite directors. I will add Any Given Sunday to my list of movies to watch.

This is the best coverage of the events I've seen so far. Excellent stuff :)
Whatever the crazy stuff happen in the markets, there's a few who had already seen it coming. Even the crazy event we see today had solid bets behind it from those who did their research years ago.

Thanks a lot for going into history and business models of these companies. Now allow me to add something here you missed:

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Thank You!

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What I don't understand is how the big funds thought that shorting more than the entire supply of a stock was a good idea in any way. I am happy to see the manipulation coming back to bite them, but the following regulation was brutal. Seeing the guy from the big short jumping into this makes me think that WSB may be a lot smarter than they have been given credit for.

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Media created a very distorted image. their coverage of the events will only be outdone by the likes of state media of Stalin's Russia or Hitler's Germany. Michael Burry was betting on Gamestop ages before WallStreetBets started doing their thing.

What I don't understand is how the big funds thought that shorting more than the entire supply of a stock was a good idea in any way.

It is just insanity coupled with greed. You don't need to be a genius to see a short squeeze coming.

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Fair points. The greed is readily apparent!

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