January 2021, on the heels of a tumultuous year filled with civil unrest, political upheaval, blatant racism, a pandemic, and an L-shaped recovery “rebranded” as a K-recovery, /wallstreetbets saw a way to fight back.
#Gme meltdown full#
Reddit: Click here to read the full open letter.
Suddenly, the narrative became less about $GME fundamentals, and more about who these short sellers were. More than $$$, what /wallstreetbets realized was the real effect of The Big Short Squeeze. You can read about Michael Burry exiting his position here. For /wallstreetbets, the fun was just beginning. His bet came true (“a 1,400% gain on GameStop in under four months”) & was out. Is it game over? Time to pull out and sell? Our legendary investor has turned $50k into $3 million. Sept 2020 is when things start going bananas.īy now, Reddit “likes the stock” and, following in u/DeepFuckingValue’s footsteps, wants a piece of the action. U/stonksthrowaway730: “You had $162k and decided to put it all into Gamestop? This is the definition of weaponized autism. Subreddit /wallstreetbets can’t believe it. With his original $50k investment (which had fallen as low as $6k at one point), he had continued doubling down on $GME, leveraging The Big Short Squeeze. Then, in August 2020, u/DeepFuckingValue was up $600,000. “Maybe there’s an opportunity here for the REST of us.” Meanwhile, attention on Reddit begins to build. Here’s where the hype cycle begins.īetween Apr & July 2020, u/DeepFuckingValue’s portfolio went down. u/DeepFuckingValue was up nearly $300k-and still holding. $GME going up was the opposite of what hedge funds had bet on. After $GME “nightmare” 2019 Q3 earnings report: “Did I sell? Y’all for real? I added”Īnd up until April 2020, the narrative around $GME stayed largely around fundamentals. This was a very early bet, and one that would take 1yr+ to play out.Įvery month, u/DeepFuckingValue would post his “YOLO Updates” on subreddit /wallstreetbets. You can read more about what a “short squeeze” is and what that means in this particular scenario here. It was that short interest was > 100% What u/DeepFuckingValue and Michael Burry were betting on wasn’t just that $GME was going to go back up, but that it was going to “squeeze” short-sellers. The opportunity wasn’t just that $GME was undervalued. Burry was the short seller who called the housing crisis in ’08, and the main character of the movie: The Big Short. More than a year prior, u/DeepFuckingValue had spotted the $GME opportunity - right alongside legendary investor Michael Burry. The fundamentals of the company were strong, and it had a promising post-pandemic future. His argument was that Gamestop $GME was undervalued. In July 2020, a retail investor, YouTuber, and Redditor u/DeepFuckingValue made a controversial video. This is the narrative that deserves more attention…
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