Peterffy: Markets Were 'Frighteningly Close' to Collapse Amid GameStop Turmoil

[@GlennYarwood]

Maybe hedge funds shouldn’t make stupid trades then.

[@tylerdavis520]

You might be onto something here

[@tajayfoot1]

Assuming GameStop a brick and mortar company was going to crash during a time in which online platforms are butchering and destroying in person business it was a safe bet to short it and to think that some how hedge funds are the bad guys somehow is some real stupid shit. The reason why the market is so regulated is primarily because of the Great Depression which was caused due to similar instances of what we see today (uninformed traders buying and selling based on the poor information they have).

[@GlennYarwood]

@@tajayfoot1 they shorted 120% of the available stock. That is a stupid trade. Sure, like you say the stock is most likely to go down, but it didn’t. And it wouldn’t have gone up as much as it did if the hedge fund hadn’t made such a risky trade. I’m not saying they’re “the bad guys” I’m saying they made a stupid risky trade and they lost.

[@jlocklear7696]

They quadrupled down....doh!

[@sevenproxies4255]

@@tajayfoot1 You moron. Hedgefunds have turned shorting into their personal money printer. They sabotage and short companies into bankruptcy, because when they go belly up, the hedgefunds don't have to cover the shorts, and whatever gains they make are completely tax free. This practice is predatory and definitely makes you a "bad guy" if you partake in it. Luckily we caught these assholes with their fingers in the cookie jar, and we have now made it impossible for Gamestop to go into bankruptcy. So hedgefunds will continually lose money until they cover their shorts... Which they can't, since the predatory idiots shorted Gamestop 140 %. They need more shares than what makes up the entire company to cover. And I couldn't laugh harder at their misery and pain. 🤣

[@DreamerC1]

0:30 - let this one sink in!!! 270 million shares were NEEDED, but only 50 million EXISTED!

[@waynecsmith5145]

Every time I hear that I wonder what delusion is the SEC under?

[@arunmfive]

Funny thing is there's less shares in existance on a pre-split basis as of now.

[@nitrosrt4]

his is the only guy telling the truth. he understands what infinite means. GME had a theoretical price of INFINITY.

[@shaunf2946]

But if the brokers all went bankrupt in waves, would you be able to sell your shares?

[@Koushi82]

The infinity stone wars. End Game. STOP

[@skyak4493]

There is no such thing as infinity in finance. You always have counterparty risk limits. You can't collect more from a company than what you can get in bankruptcy.

[@Koushi82]

@@skyak4493 infinity is when everything goes bankrupt. Unknown systemic risk because of naked shorting.

[@Over_Reaction]

Still does. 😘 To the moon!

[@Neuhof90]

= "without market manipulation we would have been fucked"

[@mbormann6046]

So someone sold something that did not exist??? Sounds like fraud and prison time for some assholes

[@czechish]

If they don't want this to happen again, people shouldn't be able to execute naked shorts. Those who go long shouldn't be punished for the actions of short sellers.

[@Ginsue45]

Shorting is legal. Naked shorting is illegal already. The rules aren't as big of an issue as the lack of enforcement. It is all rigged with government cronyism or laziness, or both. It could all be fixed with true transparency, but the powers won't allow it.

[@justsaiyansteve]

So the squeeze hasnt been squoze.

[@jioush]

The lemonade is starting to trickle

[@dodge2430]

the piss has not been possed

[@jkoz4]

GME to the fckn MOON

[@kenaultman7499]

Nope! Still negative! It's like Thanos now though. That shit is inevitable.

[@TheIslandRiders]

Best part. Nothing. Absolutely nothing was covered. All this was confirmed during the last (4th i think it was) gamestop hearing. These idiots have doubled down at the bare minimum since then. And are probably very confused as to why no one panics out and why this thing has literally gone global at such a massive scale.

[@davidwebber6956]

So it's ok to take the little guys money but change the rules if it's the other way around .

[@incipidsigninsetup]

So maybe a stock shouldn't be shorted to the tune of 130%. Maybe hedge funds should be forced to reveal what stocks they are shortage and to what amounts. The issues here are known and obvious as well as the methods needed to fix the problem.

[@tantalus3881]

1800%

[@jkoz4]

And they have shorted every day since then. They are digging their hole deeper. GME shares are not being sold: they are being held. This is going to launch, fuel has been gathering since January 28 as they have shorted more and more EVERY DAY. These hedge funds are about to be liquidated, and they did this to themselves.

[@Ginsue45]

This

[@jjack5118]

Thats just the short positions, they were 300% short the stock via puts

[@shartattack6448]

I remember watching this a year ago and didn’t understand hardly at all what he was saying. Man what you can learn in a year. Hedgies R Fukd 💎🤲🏼

[@scorcher7641]

Sounds like clear confirmation that it was rigged to save the shorts. Whether they want to hide behind time to clear or whatever, it seems they forced demand to drop to allow shorts an artificial bailout.

[@blantant]

This poor old man was scared. Call the SEC. Alert the president. Can't be letting these kids be scaring people.

[@Danny-vd1nj]

So he admitted to screwing the buyers in favour of sellers.

[@mikesimms9874]

They haven't stopped

[@EmersonSalmeron]

If that’s all it takes then the market is weak af

[@jjack5118]

Its not weak, its just that they were going to lose trillions on their dumb bet and didn't like the fact the tables had turned so they blatantly rigged it

[@shiningdawn8578]

The market is incredibly resilient in that it's withstood such manipulation for so long, but hasn't fundamentally crashed.

[@ejduffy]

SEC! That’s the guy, right there!

[@gabrielrosenblum9330]

how does this not have more views. let's lock the float!

[@raybod1775]

Hedge funds need to go broke for shorting stocks.

[@BLIX5445]

Moral of the story: Always exercise your options.

[@jjack5118]

But most play options because they can't afford the 100 shares at the call price.

[@JK360noscope]

Lmaooooo

[@charltonbreezy3929]

Cool we got ya man. We are direct registering our shares In OUR own names. Cheers for the pro tip

[@skyak4493]

He is absolutely right that there should be faster disclosure of short positions -not doing so today gives an information advantage to the brokers and hedge funds. It would also make public the information brokers need to charge interest rates (to borrow shares) and margin rates that are appropriate for risk.

[@merrick8000]

How did this get swept under the rug?

[@definitelyahumannotabot]

"Domino bankruptcy" i fucking knew it. And its happening soon

[@kbville34]

Put them all in jail! Crooks

[@BasedBasterd]

Buy and hold GME .........These guys still haven't learned. It will go to the moon. This isn't over!

[@ryugurena3327]

We'll fucking do it again

[@lIII]

true people always find a way now its AMC lol

[@kierankennedy1140]

I'm just here for the show. If money is made, hell yeah. If I get to watch history being made as things implode, even cooler.

[@Jjkal899]

I don’t get why shorting is legal. I don’t want to “loan” my shares so someone can steal the value.

[@yechen951]

Shorting is only for the big hedge funds to win profit using other people’s money and leave with a bunch of cash, and at the same time stirring the market. Individual investors like most of us won’t be able to short selling. They are setting up a game only they can play and only they are going to win.

[@frostreaver1]

Often the people lending the shares dont even know. If you have margin enabled then your broker is lending your shares out to HFs for premiums. The broker doesnt lose money for lending the shares, its all income for them.

[@williamlackey123]

DRS to CS! 5:15

[@aidanabacus3373]

At some things he is right: 1. short interest has to be public information updated daily and the minimum margin requirements have to be raised proportionally to the risk. In that way any institution should only be able to risk the money that they have and not more so there would be no worries if the go bankrupt. No hf would let retail investors of the hook if they are on the bad side of a deal! 2. obviously the system is too weak and opaque. And why on earth should it be possible to short stock you haven't even borrowed before? Those FTDs are an invitation to play the system for those with deep pockets. => all you can see in the media around Gamestop is very revealing

[@AndrewFurmanczyk86]

Unpopular opinion but.... maybe markets are to fragile and need to be completely remade on a decentralized blockchain based network that keeps corruption from happening. *sips tea* but that's none of my business.

[@JK360noscope]

LoL sit your broke ass down

[@shiro5811]

Can't stop, won't stop, GameStop!! The show goes on!!!

[@jessejet9569]

Seeing these comments 3 years later, spicy

[@jake4024]

GameStop’s market cap was roughly 28 billion when it was trading 400+, you’re telling me that will crash a 30 trillion market?

[@DL-ng8rf]

The problem isn't just GME. It will only take panic for large money to get pulled out of the system all at once. See Lehmann Brothers for example. Lehmann didn't cause the 2007-2008 collapse, but it was one of the first dominos to fall.

[@anasfrh]

One of the world’s most well informed people on the issue just said it was going to. It’s a concession that indeed the system is extremely fragile.

[@Koushi82]

28 billion yes. because it was going to go into the thousands perhaps 10000+ per share or maybe 100k even. this is because it was shorted OVER 100%. GME could be worth more than AMAZON APPLE GOOGLE FB MICROSOFT all of them combined. Just because these HF screwed up. AND they can never cover it. Not to mention call holders have the right to exercise the call options to take delivery of shares instead. Meaning they can in theory force brokers to buy gme shares 250 million of them. which do not exist meaning someone sold naked short calls. AND they will liquidate their company or account to buy them. infinity is not a meme it is reality. GME would be worth infinity as I said Infinity stone The infinity stone wars. GAME STOP THE GAME STOPS This why any shareholders of GME should in fact be compensated at least 1000+ to 10k per share I'd say at go in the middle and give each shareholder 4269.69 per share. As no one will be satisfied with the farce that they pulled. 300 billion is a small price to pay to save the world economy of 100s of trillions these HF almost destroyed.

[@kb3ngb]

@@DL-ng8rf people aren't going to pull out because our market is blatantly a scam? see: other countries have markets as well, and even americans can trade them. the heliparent / corporate patriarch and patron saint of short sellers , SEC has chosen to forbid us trading anything but the most prosaic of foreign equities though. probably because not even americans would buy american options given the chance and due to the rampant abuse of HFT to manipulate prices by market makers feeling too put out at expiration

[@JeremyLand]

During a squeeze, the price skyrockets, because shorts must cover. To cover, they must liquidate assets. The sale of these assets drops the price of those assets for other holders, which reduces their value on the books, which causes them to be margin called as well, which forces them to liquidate their assets, which drops the price... This is relatively limited when it's at the hedge fund level. When brokers have to cover what hedge funds can't, that's when the problem starts getting out of control. And then when clearinghouses have cover, that's when the economy becomes destabilized.

[@ShadeKirby500]

There's still a threat of the market breaking. This entire narrative that "woo, dodged a bullet" is premature.

[@aryarock22]

Nah it’s just waiting to happen. Shorts never covered.

[@cavelord69]

Want to see us do it again?

[@truthaboveall7988]

funny. on CNBC they edited this ...when he said gme was going into the thousands. they erase when they re-ask him how much? he says no not 1k into thousands....

[@stikkgreen5237]

And to think they just quadrupled down, and dug the ditch much deeper. They are so very very fukt

[@tonywong6884]

Margin Call 2: Melvin

[@nyogtheeldritchgentleman]

The can has been kicked far enough.

[@rabbitbobo4131]

The question is who started this? You are saying that the retail investor make Corp investor take bets? Signs shorts paper? They took a bet and they lost it is that simple, if they are allow to get away with this then all “shorts” should not count as well. Is this what the US stock market now? I am looking forwards to those senate members who supports those financial company.. I will definitely ask a lot of friends not to vote for them.

[@tylerw9160]

He said in another interview, “it’s nobody’s fault. Everyone was following rules. There’s is just a huge gap in the rules”

[@davec3974]

Valuations are unsustainably high. There needs to be a crash to put some sanity back into the market and let the next generation in at a reasonable price.

[@Koushi82]

GME will have done that. Because the HF involved will need to liquidate their other holdings they got for 0% rates from federal reserve.

[@sevenproxies4255]

I want the markets to collapse. That's why i'm buying and holding GME. We want to see wall street burn. 😊

[@JK360noscope]

Muahahahahah

[@PlayerXIII]

Close to collapse my butt. A single stock being squeezed, and a couple small hedge funds going bankrupt aint gonna hurt the multi trillion dollar market. If anything this is then admitting they "had to" play dirty to get out of this. I hope it gets investigated

[@tylerdavis520]

Maybe you don’t really understand what he’s saying

[@PlayerXIII]

@@tylerdavis520 i get what he's saying, I just don't like his answer. It's true that if the price went haywire then the ripple effects would go up the chain etc etc. Thats why we're supposed to have the SEC. Halt trading on this stock, get affected parties involved and lock in an agreed upon price per share. Its not gonna be 5 figures or 69,420 like WSB were chanting about. But there were solutions available that could've been discovered instead of letting the markets collapse. Instead the HFs were allowed to magically reduce their short interest without actually buying the millions of shares, and pretend this never happened. The HFs got themselves into this mess by shorting a stock by this much. Ultimately, the markets were manipulated by multibillion dollar funds, and the ones who had the power to stop them stood by. Rules were rewritten or ignored and they walked away scot free. Market manipulation is illegal unless you're part of the big money. And we'll see another set of rules handed down to "protect retail", like the PDT rule that was implemented after 2008's financial crisis. What a joke

[@tylerdavis520]

I’m not saying I agree with his methods, but your comment seemed to imply a situation like this couldn’t theoretically collapse the market. I disagreed with that. Don’t get it twisted, I’m firmly on the side of retail

[@PlayerXIII]

@@tylerdavis520 not upset at you. Just venting my feelings on this topic.

[@tylerdavis520]

@@PlayerXIII ya I’m not offended. But maybe we don’t really know how high the price could’ve jumped to without manipulation? Maybe these people were truly freaking out due to fears it could skyrocket out of control and force the entire market to compensate for certain people’s errors

[@brianscott3557]

The settlements off of this should be epic .. not real value but implied value!!!!

[@morganyuloikj]

Terrible person, terrible solution and terrible system. Round two is up. Now.

[@ThinkBlueAZ]

This guy better get his diaper on for what is coming.

[@dada10000]

IBKR is the most responsible broker out there, the risks that robinhood created shouldn't have happened and capital requirements should be increased, IBKR already holds 10 times the regulatory amount of capital in order to be as safe as they can and its time the regulation will force other competitors to hold appropriate amounts of capital as well

[@Andres-ft3vy]

Do you know what you are talking about? The problem were the short sellers and the call option sellers. I can buy any stock I want and the brokers have nothing to do with it.

[@dada10000]

@@Andres-ft3vy Obviously you are the one who doesn't know what his talking about, you should read about share borrowing and T + 2 settlement, when you buy a stock the transfer of the money and stock doesn't happen for 2 days and brokers have counter party risk, what a dumb statement "I can buy any stock I want and the brokers have nothing to do with it"

[@Andres-ft3vy]

​@@dada10000 Thats the clearing house, not the broker, and yes, I know the broker is on the hook for those shares. Why do you think Robinhood is "creating risks"? The real problem is market makers making markets they can't honor by selling calls they cant deliver. Dont get me started with the shorts at 140% SI. He who sells what isn't his'n, must buy it back or go to pris'n

[@zo9fg]

@@Andres-ft3vy #1 RH doesn't allow shorting so idk wtf are u talking about #2 he just admitted he stop buy side even tho he had the 9b liquidity to post at DTCC #3 MM are delta hedged against calls they sold #4 the only guys shorting are mostly hedge funds

[@Koushi82]

@@zo9fg At least he admitted that GME was worth infinity eg at any price. When this settlement happens all GME holders at the time GME hit 480 plus now should be compensated at least 2-3x that amount.

[@jinniu]

I bet he now wishes he hadn't said anything about retail being able to ask for their shares, now. Thanks for enlightening the people back then, it took a little while but it's advice that's been acted upon. Say what you will about interactive brokers, at least they didn't use PFOF (not sure about now). Still, I won't be holding any stock with a broker, they obviously don't have my best interest at heart as a retail trader.

[@TGOD5840]

Smoking mirrors

[@YouArentThatImportant]

5:00 GME is inevitable

[@skyak4493]

"Democratization of trading" is a lie! Those companies are paying for your trades by giving you a worse price on the trade and selling your information so that AI can be programed to take your money. RH needed a huge amount of money to cover their risk when traders all went to one sided bets. Retail traders are surprised and outraged when they get the crapy service they paid nothing for. If you expect top notch uninterrupted service for daytraders, go to Interactive Brokers.

[@kb3ngb]

ibkr is still screwing with gamestop trading, they cut it off like the rest, he's defending it here, he ignored the entire hearing because he has the privilege based on cronyism, and a few weeks ago they killed my access to market data and made it impossible to stay signed in at the peak value of some options i had wanted to sell. i'd expect some apologist crap in return except save it because when i happened to be logging the entire session, doxxed the board, and called this guys cell about it, i got a return call a few days later, and a couple weeks later, the upper management liasion as he puts it on his linked in, also high up in something else and i'm deliberately not naming position, wrote back after a team of devs looked in to my accusations (i also had a bit more, i reverse engineer these things not without competence or purpose) and could not fully disprove a single one. they tried to say i had been on that morning, no, i was, technically, til a bit before we transition from premarket to market normal hours when my TWS caught an extra update, which then caused a BSOD in the windows vm i trade in, and then refused to fully sign on til magically the doldrums of lunch....it would connect , get no market data, behave sporadically...so i used its token to sign in through the website and got one single option sold before being forcibly remotely deauthed all of which i logged....they came back with, it was a 'firewall malfunction' in chicago that magicaly hit retail installs of tws....right...they also gave me a backdoor around it that would have prevented this they said. ok, who had that before hand? why didn't i? and what about the fact i'm out $22,500 because of this ...i asked them what peterffy would do if his broker killed his access like that or lost it in those hours...several times and have got no answer yet but still their attention. pretty sure they're still worried about GME...i'm basically a worthless account at this point, yet i managed to get this billionaires attention nearly immediately with one message there...and a team of his devs could not refute it with their server side logs. the most powerful thing tho, the backdoor...this man is a crook. not only that he also has had a friendship i've been told where he's been playing cards with friggin griffin for years...they blatantly manipulate the market, and i pay him for trades.

[@nathanallwood3487]

I'm gonna put my Computer Share paperwork on a fishing line and make him chase it. " Gotta be quicker than that !"

[@drsftw741]

Hodl the line!!!!!!

[@ericv5337]

Wow.....you all did it again..maybe you do need more regulations. How can one stock acting out of the ordinary tank an entire market?

[@Koushi82]

@Kokopelli 7 Muzick tell that to federal reserve

[@ThinkBlueAZ]

House of Cards

[@waynebinky]

Thankfully the buy button removal option was exercised...

[@stevieb4141]

We are COMING FOR YOU rich elitists. Can't stop, won't stop, GAMESTOP

[@jwillz6067]

Thats what we waiting for. Domino effect. Small ones fall then so on

[@pjamesbda]

A huge mess! 01:10 ....impossible to untangle!? Of course it is - upsets the neat little game where you find a widget, or a clever little angle - someway to out maneuver everyone else. Lure them in, fix the game and rake in the haul...boring infantilism. One day, we will look at this tripe as quaint and unimaginable that we placed so much value on so little.

[@tylerw9160]

I really don’t think people commenting understand what a total market collapse means... It’s not a Melvin Capital collapse issue, it’s a United States financial meltdown issue. Everybody loses....

[@naymac3]

Most of the people been losing this entire time. The game is rigged and if you learned to play by the rules they cry and wanna change it. So peole are ready for everything to burn down. We can always rebuild better.

[@tylerw9160]

@@naymac3 can we? Remember after the fall of Rome.... was the dark ages.

[@tylerw9160]

@Jiminy Cricket you’re right and in the last week we see what happens when the grid for that fails....

[@thesummerland6165]

the 5M who lost their homes in 08 understand collapse by greedy HF's market manipulation

[@evangreenberg1666]

@@tylerw9160 out with the old, in with the new. Ya it's gunna suck but at the point I'm so mad I literally don't care. Seems like anyone who has a good grasp on finance could make a better system then this rigged game.

[@chuckroast3573]

total bs, the only thing on the verge of collapse were two hedge funds who couldn't answer their margin calls or cover their shorts by buying the stock they shorted , period!

[@tylerw9160]

The total price of GameStop at $300 a share was 20bn. You know how much Melvin capital was worth? 13bn. They could have been wiped out completely. After that Robinhood would have gone insolvent. After that DTCC, which processes 95% of the New York Stock Exchange. Why do you think Robinhood had to raise 1bn overnight? That’s only when the price was 300. That’s without an infinite short squeeze..... This would have been a total market meltdown. Look to 2008 to see what that would look like.

[@kb3ngb]

@@tylerw9160 dtcc going bust over 7 billion in defaults? you're kidding, ibkr has 10 billion on hand for it and if dtcc doesnt have that...well i guess those jerkoffs should not have been allowed to short the market to oblivion. now they're really shorting it to oblivion, ran out of bonds to short exempt even and started on etfs....jeez, yeah right...dtcc would have farted that money. get real

[@tylerw9160]

@@kb3ngb I was talking if the infinite squeeze happened, as he stated in the video, it could have gone into thousands. If that happened it would have been a lot more than 7bn

[@78213oswaldo]

This is why DRS will not work. ITM calls is the way.

[@bartlettnate]

I wonder what his tears are like today?

[@rasul407]

Everyone is gangster until Wuhan 🦇 flies in

[@farahsmirage127]

sounds like he needs to use his insurance. lol

[@Muzammil.S]

Wrong!

[@emlortnoctonod8401]

Everybody is talking about bitcoin, but who is talking about bancor?

[@SilverSquirrel]

When silver pops guys like this will be running around on fire.

[@kb3ngb]

lol so never. still HODL GME here...they still might be on fire from that

[@kb3ngb]

silver was just a sideshow ..forget which but one of the shorts getting burned already had a ton of call options on it. didn't try that hard to remember, better time forget them anyway lol. but that is easy to verify from public record anyway

[@miguelaponte2866]

AMC is here and we are taking all the business back !!!!!!

[@darshanaiyengar]

No way one shorting company can collapse the financial market. They also said feather weight foam tore a hole in Columbia space shuttle, it's just impossible. /s

[@kenaultman7499]

Amc is even worse now. Let that sink in. They're still kicking the can on both of these down the road. Not financial advice, I just like the stock!!!

[@robmen1402]

It was not going to make the market collapse lmao. Dont be a goofball. People keep saying this i

[@johnnilan8240]

The small investors have lost sight of the purpose of the market -- to invest in corporations that have growth potential and have good management. It is not meant to supplant the closed casinos.

[@brutussmithers3777]

⭐️🇺🇸🦅TRUMP2024🦅🇺🇸⭐️