WallStreetBets Responds To The SEC: “Eat A D!ck”
Update 5:55pm ET: In a day when regulators, brokerages, and even the administration launched a full court press to halt the marketwide short squeezes launched by Robinhood daytraders armed with stimmy checks and inspired by reddit’s forums – because a few hedge funds complained or were put out of business – Reddit’s infamous WallStreetBets, the alleged origin of many of these bull raids, has published a response to the SEC. We present it without commentary.
* * *
Just hours after Jen Psaki informed the world that Joe Biden is closely tracking the turmoil in the most shorted stocks…
… The SEC released a statement Wednesday after-hours echoing Uncle Jone, that it too was closely following the insanity in the market.
“We are aware of and actively monitoring the on-going market volatility in the options and equities markets and, consistent with our mission to protect investors and maintain fair, orderly, and efficient markets, we are working with our fellow regulators to assess the situation and review the activities of regulated entities, financial intermediaries, and other market participants,” Acting Chair Allison Herren Lee Pete Driscoll, Director, Division of Examinations Christian Sabella, Acting Director, Division of Trading and Markets wrote in a statement.
While the SEC’s did not mention individual company names, it was clear that the the was referring to the monster moves in the various most shorted names, including the extensively discussed explosions in Gamestop, AMC, BlackBerry Limited and countless other shorts which r/Wallstreetbets went after in hopes of forcing short squeezes.
GameStop’s parabolic rise – which has become a poster child of all that is wrong with this bubble market – is a clear reminder of the Dot Com bubble insanity. Even fund manager Michael Burry who was long Gamestop, called the move “unnatural, insane, and dangerous.”
Sure enough, in a hint of what may be coming, overnight William Galvin, Massachusetts’ top securities regulator, said today that Gamestop trading could suggest something is “systemically wrong” with the market. Around midday, TD Ameritrade told clients that it would impose restrictions on certain trades involding GME, AMC and other stocks…
… ahead of what may be a marketwide halt in trading in these names as hedge funds come crying to mommy.
Already some industry watchers are speculating that it is only a matter of time before Reddit will be subpoenaed to explain how a bunch of teenagers destroyed a hedge fund.
The subpoenas will be for the purpose of doxing r/WSB posters, not for anything Reddit has done. https://t.co/Imj5GF9pCz
— Preston Byrne (@prestonjbyrne) January 27, 2021
Also earlier, the CEO of Nasdaq, Adena Friedman, suggest a halt to trading to allow big investors to “recalibrate their positions’ to combat reddit users
Nasdaq CEO Suggests Halt to Trading to Allow Big Investors to ‘Recalibrate Their Positions’ to Combat Reddit Users https://t.co/UymE6bfuT2
— Mediaite (@Mediaite) January 27, 2021
Then again, the ramp may continue for a while because after being asked explicitly on at least two occasions, uberprinter Jerome Powell refused to answer questions related to Gamestop’s parabolic rise, suggesting that the bubble is only going to get bigger.
Wed, 01/27/2021 – 17:30