Chamath’s tweet sent the stock soaring another 93 per cent on Tuesday. Let’s gooooooo!!!!!!!!” he announced on Twitter. We bought Feb $115 Calls on $GME this morning. On Tuesday, Chamath Palihapitiya, the billionaire owner of Social Capital and investor in companies like Slack and SurveyMonkey, said he had bought Call options of GameStop. The game of Russian roulette, however, is no longer limited to the ‘degenerates’ (as the members of WallStreetBets call themselves), as some billionaries have also hopped on to the gravy-train that is the post-Covid bull market. One member of the infamous group turned their $50,000 Call options into a goldmine worth $13 million. On the other side, some of the option buyers of GameStop became multi-millionaires overnight. Some reports said short sellers in GameStop were sitting on year-to-date losses of more than $5 billion as on Wednesday. According to some reports, it was not in a position to honour the delivery of shares it had shorted.Ĭitron Research also took a heavy beating, as its short bets on GameStop were running a marked-to-market loss of nearly $2 billion. Late Monday, Wall Street Journal reported that Citadel and Point72 will bail out Melvin Capital by investing $2.75 billion in the hedge fund, after it booked nosebleeding losses in its short positions on GameStop. Other members of WallStreetBets bought the stock and its Call options in a show of solidarity and chanted YOLO - you only live once - as a mantra in their attempt to stage an audacious rebellion act against Wall Street. They truly believe that we, the average retail investors, do not know anything about finances or the market (which may be true), and we're just gambling our money away,” posted a WallStreetBets member with the pseudonym BenAffleks. “Hedge fund managers live in the past, and continue to look down upon the retail investors. At the high point of the day on Monday, shares of GameStop, which was sleep-walking to bankruptcy, had logged an eye-popping 779 per cent gain for January thus far. What started as an ‘idiotic enthusiasm’ (a term used by one Reddit member of the group) turned Wall Street upside down and left some of the biggest investing minds scratching their heads.
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