Conversation

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

absolutely fascinating sociopsychologicalwhatever shit happening here

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LeGate

| pillow-fight.com CMO

@williamlegate

· Jan 26, 2021

/r/WallStreetBets has written an open letter to powers that be @CNBC - they threaten to continue to bankrupt every last hedge-fund since Wall Street has screwed over the average American & always gets bailed out. They actually make great points, read:

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

furiously googling "can the SEC charge an egregore with market manipulation"

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

also really enjoying the image of some serious-ass trader having to plow through hundreds of comments on /r/wsb in order to have a fully up-to-date picture of meme-based market movements

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

aw hell yeah this is the cyberpunk shit i'm talking about

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Daniel Sinclair

@_DanielSinclair

· Jan 26, 2021

Quants are scraping WallStreetBets now. We are off the rails lmao businessinsider.com/hedge-funds-da

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

okay no *this* is the cyberpunk shit i'm talking about

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sadals

@sadalsvvd

· Jan 27, 2021

Replying to @eigenrobot

they're also trying to astroturf /r/wsb apparently with lots of bots saying that GME peaked, it's over, etc.

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

what do you think the m/f gender ratio is here? 99% 99.9%? 99.99%?

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jpa.eth

@josephpalbanese

· Jan 26, 2021

the wallstreetbets discord needs to be heard to be believed. it’s the modern day version of being on floor of NYSE.

0:09

646.2K views

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

alright party's over

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sucks

@powerbottomdad1

· Jan 27, 2021

my mom told me she was thinking of buying some GameStop Corp (GME) tonight, my poor sweet mother

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

oh shit this is a deeper story than i expected

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Toxic

@toxic

· Jan 26, 2021

Step 0: Citadel pays Robinhood for order flow. Citadel gets to see RH's orders a few milliseconds before they're filled. Citadel may choose to front-run some of those trades. Step 1: RH's customers and WallStreetBets start manipulating $GME. This is happening in the open.

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

hmmmmmmmmmm

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Toxic

@toxic

· Jan 26, 2021

Step 2: HFTs buy shares ahead of Robinhood users. Remember Citadel, the firm who can front-run robinhood trades, and got to see all of that RH data a little early because they paid for flow? Yeah. When do you think they started buying $GME in front of RH traders on momentum?

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

hmmmmmmmm

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Toxic

@toxic

· Jan 26, 2021

Step 3: A hedge fund becomes insolvent. Today it was Melvin Capital Management. It very likely won't be the last. Melvin immediately sells off a portion of itself, because it needs the influx of cash or it will vanish in a poof of smoke, vaporizing ~$15 Billion in the process.

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

hmmmmmmmmmm

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Toxic

@toxic

· Jan 26, 2021

Step 4: Who's the lead investor, picking up part of a usually successful fund at fire-sale prices? Right. Citadel, probably with some of the cash they made by repeatedly profiting in the milliseconds before filling the trades that collapsed this fund. wsj.com/articles/citad

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4:28 AM · Jan 27, 2021Twitter Web App

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QC (in Berlin 7/29-??? w/ COVID

Replying to

hmmmmmmmmmmmmmmmmm

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Toxic

@toxic

· Jan 26, 2021

Step 5: Citadel still has access to RH order flows, is still allowed to front-run them and/or pocket the spread, and can use that and other information to determine the next over-leveraged fund that's going to get squeezed. They might even be able to accelerate the squeeze.

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

hmm matt levine says this thread is bad nvm

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Matt Levine

@matt_levine

· Jan 26, 2021

when i say "cursed thread" btw i mean that it's bad. this is not how anything works.

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

i would believe this tbh

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Kevin Kwok

@kevinakwok

· Jan 27, 2021

Everything about the financial markets makes sense once you think of it as a competition by everyone to make it into @matt_levine’s newsletter

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

lol

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*Walter Bloomberg

@DeItaone

· Jan 27, 2021

- WHITE HOUSE SAYS MONITORING SITUATION INVOLVING GAMESTOP, OTHER COMPANIES

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

matt levine killing it as usual but also i am running out of free bloomberg views rip

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Andy Matuschak

@andy_matuschak

· Jan 27, 2021

I am not sure what special award the internet can give to @matt_levine which would match the value of his commentary on the GameStop madness, but whatever it is, I would like to vote for it. Links to the past few episodes from today’s if you’ve missed: bloomberg.com/opinion/articl

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

hmm thread

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the slime boss

@caylenb

· Jan 27, 2021

has anyone covering the Wall Street GME reaping and sowing gone into the fact that a lot of the GameStop and directly associated trades have been largely amplified by social listening powered mega firms doing machine learning automated trades because the “idea” of GME is popular?

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

did any science fiction author predict this. i truly wonder twitter.com/hshaban/status

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

woof. dude’s not wrong tho

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Scott Galloway

@profgalloway

· Jan 27, 2021

Arm young men, in a basement, not at work, not having sex, not forming connection, with an RH account, a phone and stimulus and you have the perfect storm of volatility as they wage war against established players while squeezing the dopa bag,,,harder and harder

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 27, 2021

this is actually deep and relevant commentary

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sucks

@powerbottomdad1

· Jan 27, 2021

dudes will literally buy $GME $AMC and $BB, until it bankrupts multiple hedge funds, instead of going to therapy

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

hmm

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Rod Breslau

@Slasher

· Jan 27, 2021

wallstreetbets subreddit just went private

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

hmmmm

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Claire Lehmann

@clairlemon

· Jan 27, 2021

Their Discord server is already disconnected—not for trading mind you, but for “hate speech”

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

they got a new subreddit i’m really rooting for these fuckers at this point 🚀🚀🚀

reddit.com

STOP POSTING ABOUT OTHER STOCKS! JUST BUY AND HOLD GME!

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

“I honestly just need to know theres someone out there still telling me to hold” is this 🚀 class solidarity

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

hmmmm 🤔

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𝐁𝐄𝐀𝐒𝐓

@BLUNDERBUSSTED

· Jan 28, 2021

i lied look at this trash lying-through-their-teeth statement holy shit they're just looking out for us guys us little people thanks robin hood blog.robinhood.com/news/2021/1/28

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

lim thread, click through for the whole thing twitter.com/liminal_warmth

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

mor thredd

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Cory Doctorow

@doctorow

· Jan 28, 2021

There is no shortage of takes about what's going on with Gamestop (and other surging stocks), Robinhood and Reddit's r/wallstreetbets, many of them contradictory - at least on the face of them. But I think it's possible for most of these takes to be right. Here's how. 1/

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

bruh what

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liamtheobscure

@liamtheobscure

· Jan 28, 2021

Replying to @liminal_warmth

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

once again i am asking the rich tech people of twitter to offer to financially compensate anyone who loses their job for doing the right thing (

@justinkan

@balajis

, hell

@elonmusk

why not)

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Justin Kan

@justinkan

· Jan 28, 2021

From Robinhood employee posted to Reddit

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

hmm y’all have a point there’s a plausible case that this is fake. psyops all around meanwhile:

nypost.com

Robinhood hit with class-action lawsuit after restricting GameStop...

The online stock trading app Robinhood was hit with a class-action lawsuit Thursday by a trader upset the company restricted buying of GameStop shares amid a market feeding frenzy involving...

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

hmm this generated a vague thought i'm having trouble putting into words about the internet as the global brain, something something information cascades, something something system-wide updates

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Alex Danco

@Alex_Danco

· Jan 28, 2021

(running in exhausted) OK I'm here I have the take The actual story of Gamestonk isn't that Redditors figured out how to do financial mayhem It's that we're learning how to Do Reflexivity and just wait until this starts to happen to political campaigns alexdanco.com/2021/01/28/r-w

QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 28, 2021

matt levine gamestop column number... 4? 5? i lost count

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Matt Levine

@matt_levine

· Jan 28, 2021

I really think at this point it calls upon the regulators to consider simply suspending this newsletter for a month and stop sending it. bloomberg.com/opinion/articl

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 29, 2021

hmmmm thred

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Silent Cal

@KralcTrebor

· Jan 29, 2021

So @aoc is right to ask how it can be that Robinhood stopped its clients from buying certain securities. And what she'll find is that the reason is that Dodd-Frank requires brokers like RH to post collateral to cover their clients' trading risk pre-settlement.

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QC (in Berlin 7/29-??? w/ COVID

)

@QiaochuYuan

Jan 29, 2021

dang really looking like this is a more boring story than it appeared. hmm. credit risk eh

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Matt Levine

@matt_levine

· Jan 29, 2021

Hopefully I can put out this newsletter to add some sanity, and most of all, some kindness back in this market. bloomberg.com/opinion/articl