Part 3: Let's Play a Game - GameStop Will Squeeze Again - But This Time Short Sellers are F&Cked.

If you made it this far, congratulations... you might be as regarded as we are and we've given you the blue print for success. We don't give financial advice, but we do believe GameStop will squeeze again to an all-time high. What's our price target? The same as Roaring Kitty's:

Roaring Kitty Meme Ask's What's The Target, He Answers Just Up.

When you buy stock, you can only lose what you bought because the lowest a stock can go is to zero $0.00 (can't go negative).

But when you short a stock, you're betting that the stock will go down in price. But a stock can always go up in price - hypothetically to infinity - so shorting has the risk of infinite losses.

In 2021, when GameStop squeezed, market players rigged the game - literally. They turned off the buy button and halted trading on GameStop.

Google search result on Robinhood turning off the buy button.

But it wasn't just them:

There's nothing we hate more than greedy hedge funds, market makers, and brokerage firms rigging the game - except maybe as El Presidente says the ones preaching that they're "democratizing finance for all"

So why did they do that? Why do something that was so blatantly illegal ?

We think the answer was that they had too - or they would risk the collapse of a major part of the global financial system.

Remember a short is dangerous b/c it can result in INFINITE losses if a stock keeps moving up in price. Up until the moment the short positions are closed. But what if they couldn't close the positions b/c they would have all gone bankrupt?

In 2021, short sellers Melvin Capital had to receive a $2.8bn bailout at the beginning of the squeeze.

While GameStop was being halted, users filled orders at prices ranging from $2,000-$5,000+ per share. Yeah... let that SINK IN.

GameStop orders were being filled at over $5,000 per share.

GameStop orders were being filled at over $5,000 per share.

But if you ask Google, they'll claim the high price only hit $500 per share. Almost 10x less....

Remember the concept of "Short and Distort" from Elon Musk from our earlier blog?

They literally closed the buy on GameStop so they could figure out how to suppress the price back down and convince people they closed out their shorts.

GameStop was in the news everyday - and there are countless articles from 2021 about how the shorts closed their positions.

But HONESTLY - how the fuck would they know? We can't even find the data and it's being hidden today. You think the media figured it out? No they were paid to paint a narrative - like we know they've done in the past.

Did GameStop shorts actually ever close?

In Feb 2021, Interactive Brokers CEO Thomas Peterffy was speaking about GameStop and said "We have come dangerously close to the COLLAPSE OF THE ENTIRE SYSTEM, and the public seems to be completely unaware" (Interview Here)

Let us repeat - in a short position, potential losses can be INFINITE !!!

You'd think anybody shorting GameStop in 2021 would've learn their lesson... the issue is a lot of players in the finance industry are not just GREEDY. More is never enough for them. Archegos proved this - how else do you end up owing $120bn on a fund managing $10bn?

Okay - now for the fun part - the SPECULATION part of our post.

But for that you'll have to jump to Part 4 of Let's Play a Game. Read it here: Part 4 - The End Game.

Shoutout: PeruvianBull on X is an awesome trader and saved us a lot of work with this post. Credit where credit is due, read his awesome thread on GameStop here.