The Gamestop ($GME) Saga, and a Brief History of r/Wallstreetbets

As many are already aware, the stock market, like the rest of the world, is in absolute shambles. Companies with shitty management and no future prospects are skyrocketing, and wealthy hedge fund managers are losing everything they own. In reality, it is a story similar to Robinhood (no pun intended). Somehow someway, a group of degenerates on Reddit grabbed the wealthiest men on wall street by the balls. Let’s just take a quick step back and wonder, where the hell did these (self-coined) “wsb retards” come from? Well, to help you understand, I will mention a couple users in the history of wallstreetbets that helped the subreddit gain more traction and become what it is today, a place where degenerates use wall street as a casino.

In the beginning of 2019, reddit user 1RONYMAN created a stir with an absolute whirlwind of a trade. 1RONYMAN was using a strategy called box spreads, where he essentially bets on stocks to go up and stocks to go down at the same time by using call and put option trades. He is quoted by saying “I have no money at risk” and “it literally cannot go tits up”. The famous last words of 1RONYMAN. A couple weeks later he posted the results, -2,000% percent and $60,000 in losses. Somehow someway, 1RONYMAN managed to withdraw $10,000 (he started with $5,000) and attempt to make haste before shit hit the fan. Robinhood later banned box spreads thanks to 1RONYMAN. He is known to have said that he “made a fucky wucky”.

There have been more exploits on Robinhood. This time, a user named controlthenarrative exploited Robinhood’s borrowing system. He only had $2,000 but ended up borrowing almost $50K. He posted it on r/wsb, and you will never believe what happened. They all started borrowing an infinite amount of money, and losing hundreds of thousands that they were unable to pay back.

Now, in present day, Wallstreetbets degenerates are sure that short squeezing the biggest hedge funds in America “literally cannot go tits up”. For those not familiar with investing, I will break it down in a more simple way. Companies like Gamestop, AMC, and Blackberry clearly did not have very bright futures, right? They are basically obsolete. Knowing this, hedge funds shorted them on the market, which is basically like borrowing the shares from the market, selling them, and expecting them to drop in price so you can return the borrowed shares at a lower price and profit off the difference. Wallstreetbets users recognized this pattern, and immediately took to the subreddit to alert the community about the hedge funds terrible greed. They wished to save our beloved companies like Gamestop, and save them they would. They were essentially bankrupt at one point, but are now worth over $300 a share. The users rallied and rallied with quotes such as “GME TO THE FUCKING MOON”, and “SQUEEZE THESE MOTHERFUCKERS BY THE BALLS”. And that they did. They had thousands and thousands of users dropping literally their entire live savings into Gamestop, one user even took his father’s live savings and told him “it’s either you’re retiring on a yacht or going on food stamps”. And they. Just. Kept. Buying. The more they demanded Gamestop shares the higher the price of the stock went, which also means that those hedge funds who shorted it that I was talking about before? They had to pay for their losses. Out. of. Pocket. It is a monstrous W for the lower class as we have seen a group of degenerates rally together online and seriously topple the financial hierarchy of the American economy.

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