Buy And HODL Forever, Legendary Short Seller Throws In The Towel

Andrew Left of Citron Research, a short seller, attracted the ire of the WallStreetBets a group on Redditt. Today, Left threw in the towel.

Wall Street Underestimates the Force of Robin Hood

At least two hedge funds got carted out betting against GameStop (GME) massive rise on a short squeeze.

GameStop, a company that is inherently worth next to nothing in a practical sense soared from obscurity to one of the the most widely discussed topics in the world.

Not Just GameStop

And it's not just GameStop. Dozens of near-bankrupt or fundamentally worthless companies have soared into the stratosphere. 

Wolf Richter at Wolf Street compiled a big list of companies soaring into the stratosphere.

One Day Performance Wolf Street

 

 Tian Ruixiang Holdings [TIRX] whose American Depositary Receipt (ADR) went public on the NYSE on Tuesday at $4 a share started trading today, and amid various trading halts soared by over 1,000% intraday and closed up 538%. That’s how nuts the whole mania was.

Most of the companies on his complete list I have not heard of. But it also includes Bed Bath & Beyond, Nokia, and Blackberry. 

44 Circuit Breakers Triggered on Wednesday

As part of volatility control, 44 Circuit Breakers Triggered on Wednesday

About 44 circuit-breaker halts were triggered in the first two hours of trading Wednesday amid the rapid ascension of amateur investors armed with Robinhood and their favorite social media platforms.

From cult-favorite GameStop Corp. to stereo headphone and loudspeaker retailer Koss Corp., trading volume soared as gains and losses fluctuated by the minute.

Online brokerages including Robinhood Markets and Charles Schwab Corp. were hit again Wednesday by service disruptions as traders were transfixed by wild swings in shares of GameStop Corp. and other heavily shorted stocks. TD Ameritrade Holding Corp., Morgan Stanley’s E*Trade and Fidelity were also affected, according to Downdetector.com, which tracks user complaints.

GameStop shares, which soared as much as 157% Wednesday, were halted at least twice, while movie theater company AMC Entertainment Holdings Inc. triggered four halts as it more than quadrupled on volume that was roughly 13 times the three-month average.

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William K. 4 weeks ago Member's comment

It seems that a whole lot of folks have it in for the "shorts" people, and tghe more that I learn about them, the shorts people, the less sympathy I seem to have. Clearly when folks know that many are betting on a copany failing, that tends to push toward the failure. Sort of like vultures attacking the injured who might otherwise survive.

The good part is that so far at least, this "rebellion" has no blood-shead, other than bleeding profits away.