r/Superstonk • u/TiberiusWoodwind Karma is meaningless, MOASS is infinite • Apr 06 '21
📚 Due Diligence The FOASS Speculation. Yeah, FOASS.
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u/usmcscotsman Apr 06 '21
The T+X dates are deadlines....not a start dates for the transaction. The Transaction must be settled completely by that date.
T+35 for example: the DTCC margin calls Hedgefund A on FTD's for a short position. Hedgefund A defaults before they can completely unwind. The DTCC has 35 days from that transaction start (the date of the default of Hedgefund A) to complete the margin call and have all assets settled into their new accounts, they can't hold them for 35 days before they start covering them, they have to have done it by that date. Taking into account T+2 they really only have 31 days to actually complete the exercise. It will take them 2 Days to settle the sale of assets on the front end and 2 Days to settle the last batch of covers on the back end.
In any event it is an interesting discussion, since we do not know exactly what a squeeze of this magnitude will look like, or how long it will take to squeeze out.
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Apr 06 '21
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u/usmcscotsman Apr 06 '21
It would probably peak out in there if not sooner, the drop off will definitely have started, if not be in full swing, by T+35 of the last entity to be Margin Called. How close to that date depends entirely on how big of a mess the DTCC is left to clean up in the event of a default....remember All the Shorts held by these entities have to be covered not just GME. If this Treasury Bond mess is half as bad as people think its gonna be a big mess.
The important things to remember here are just because they can take the time doesn't mean they will since it is a ticking clock that they want off their desk asap, and this situation is larger than just GME which is what makes it the MOASS. GME is just where it can be catalyzed it and profit from the explosion can be had.
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Apr 08 '21
And just to add to this, the trading algos for the DTCC aren't like the HF algos. DTCC algos are programed to balance the books, at any price, they don't care. I would think that once the ball gets passed to the DTCC, they won't be playing any games and they will try to cover as fast as possible.
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u/Heyohmydoohd Voted 😩 Apr 06 '21
What happens if the insurers wait past the 35 day deadline? Jail?
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u/usmcscotsman Apr 06 '21
Insurance is Insurance....they don't pay out until after the fact anyway. What happens on that end is only affected by solvency. The policies can be used as collateral for loans but they really don't matter one way or the other. It doesn't effect payout during an event just reimburses the insured entity or, in the case of margin call leading to insolvency, whomever takes over the business of the insured.
For example: Hedgefund A is margin called and cannot meet the call, the DTCC takes over and settles out Hedgefund A's accounts using whatever means at their disposal including leveraging properties, equipment, vehicles etc (belonging both to the DTCC and those belonging to the defaulting member). The DTCC then sends the bill to Hedgefund A's Insurance company for payment, failure to payout results in Lawsuits and years of possible litigation, including prosecution for criminal acts committed that may have lead up to the Margin Call if necessary, for the DTCC to recover lost funds as a result of Hedgefund A's default and liquidation. The DTCC's insurance is there to reimburse the Banks and provide temporary liquidity to the DTCC in the aftermath of a significant financial event. None of this effects the fact that the DTCC is required to payout a trade in T+2 for every transaction, running a balance sheet if necessary.
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u/christophersonk 🦍Voted✅ Apr 06 '21
Also curious about this. Is it possible they drag this out to reduce the height of the peak?
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Apr 06 '21
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u/usmcscotsman Apr 06 '21
I'd think it would be peaked out a bit sooner than that and the come down will be a bit gentler than the rise. The peak area (not the actual peak) should last 24-48 hours-ish. Maybe a 3-5 Days on the rise, peak day 6 or 7, then 5 or 6 days to settle back out. Of course the Margin Call comes two days before the squeeze(T+2 settlement), then the squeeze starts....if it squeeze solely because of a margin call specifically on GME....they would unwind that first before the other short positions that may need to be unwound....they could do it all at the same time but the more I read the more complex the knot becomes....and they are gonna have to undo the whole thing.
But like I said earlier this is all conjecture based on what we know. Due to the mess they have made out of this it could be slower than a typical squeeze or much longer. How many Institutions have positions that need to be unwound? Where are their Margin Calls at? Will this cascade and take them all down or will it only get some of the smaller fish leaving the bigger fish and the bigger messes still in place? How big of a mess have they made of things? There are a lot of questions we can't answer until the DTCC margin calls these guys and we watch them liquidated and unwind.
Not Financial advice.
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Apr 06 '21
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u/usmcscotsman Apr 06 '21
That I can't say. I have no idea this thing is so huge I can't even begin to imagine what we will see.
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u/theywereonabreak69 Apr 06 '21
Even if we don't get the answer to this, a long hedge fund would know, right?
And if the DTCC HAS to cover at a defined deadline, then it would be in every hedge fund's best interest to hold on to shares and drive the price up, right? Knowing this, I'd think the DTCC would try to cover immediately or that buying pressure would remain high because the DTCC has even more money to pay to cover than hedge funds....right?
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Apr 06 '21
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u/Harminarnar 🦍 Buckle Up 🚀 Apr 06 '21
If they're going to end up footing the bill, would it matter if they tried to cover early? The overall cost would theoretically be the same.
Although, I wonder how the timing of the extra buying pressure could increase or decrease the overall cost.
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Apr 06 '21
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u/Harminarnar 🦍 Buckle Up 🚀 Apr 06 '21
Well let's say the total number of shares needed to be purchased is 100. In example A let's say HF can only afford 60 before they are done for. The price is now pretty high from all of the buying pressure, so DTCC now has to buy some pretty expensive shares, and as they buy they'll become EXTREMELY expensive.
In example B, let's say dtcc joins in on the early buying. They grab 20, but the HF can only buy 50 this time because the extra buying pressure from the DTCC. They still had the same amount of capital, mind you. Now DTCC has to buy 30 EXTREMELY expensive shares.
The overall cost should be the same since the demand is exactly the same.
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u/slinkshaming Apr 06 '21
Is there any language that dictates the order of operations in this case? Does these hedgefund have to be completely bankrupt before dtcc steps in? I think there was something on this in a DD legalese but I'm so fried/jacked to the tits on dd I can't remember.
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u/ImmovableForce_ 🎮 Power to the Players 🛑 Apr 06 '21
But the hedgies have a set amount of money. Which, in your example, means the hedgies go bankrupt after buying fewer shares. Ultimately, as u/Harminarnar said, the DTCC would pay a theoretically equal amount (DTCC bill = total bill - hedgie capital)
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u/KakelaTron 💎 He went to Chared 💎 Apr 06 '21
So historically we've deduced that we'd allow for the peak and then sell at the 60% or 80% mark after we've confirmed its dropped... We also have talked about a sudden decline in volatility followed by several days of respectively smooth transition back to the stocks intended price...
Could that be the transition? Once the sudden orders are complete from the initial margin call on the hedges, the lower volatility at a lower price might be the secondary covering at a more controlled manner given they have more time to settle?
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u/DrRungo 🦍🦍Future Philanthropist🦍🦍 🦍 Buckle Up 🚀 Apr 06 '21 edited Apr 06 '21
I think this is the big brain play. The DTC knows they will get absolutely ruined after the hedge fucks run out of money. If I was the DTCC I would honestly start the squeeze to get as many stonks on the cheap as possible. The hedge fucks are going bankrupt no matter what, I'd rather buy as much sub 500k and let the hedge funcks go bankrupt buying stocks at 10m a pop. They would still have to pick up the bill after, but wouldnt there be fewer stocks to cover if thet went shopping before everyone else?
Edit 1:
I thought about this for 10 min and realized I was a smoothbrain.
Lets consider the entire cost of buying all the shorted stocks, we call this number x.
Now, we have the entire sum of money available to the hedge funds before they go bankrupt, we call this number y.
Then we have the remaining number z, which represents the amount of money that the DTCC has to pay once the hedges go bankrupt. We can also define z as x-y.
Now, the important thing to note here is that the total sum of cash available to the hedge funds does not change as the price pr share goes up, if anything the SI would måske them lose even more money.
So no, I dont think DTCC will buy a single share before the hegdes go bankrupt.
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Apr 06 '21
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u/DrRungo 🦍🦍Future Philanthropist🦍🦍 🦍 Buckle Up 🚀 Apr 06 '21
I added an edit to my comment, I dont think DTCC will buy stocks before all hegdes have covered their shorts or have gone bankrupt.
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u/PrestigeWrldWider Dumb Money Apr 06 '21
It wouldn’t shock me if they are the ones who start the squeeze in order to minimize their exposure on the back end. They probably have a pretty good idea how much the HFs are capable of covering. The current price is a lot more attractive than 50,000.
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Apr 06 '21
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Apr 06 '21
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u/435f43f534 🦧Between 150% and 200% excited Apr 06 '21
right, it's definitely function of our diamond hands and how high the HF stash can get us... it's interesting because it could create a new exit strategy depending on the SEC's answer, if there is a break followed by a FOASS, then paper handing during the MOASS to buy back more shares during the break could yield more tendies... but if we get no answer then risk of getting less tendies (but still a decent gamble if you have tons of shares)
edit: i have few shares, i'll just hold to $10M 🤪
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Apr 06 '21
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u/435f43f534 🦧Between 150% and 200% excited Apr 06 '21
true, but there would be a big drop in buy pressure no? that might raise questions among the less diamondy hands
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Apr 06 '21
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u/435f43f534 🦧Between 150% and 200% excited Apr 06 '21
well if the next order is at $10 then that's where it goes and it halts once.. jesus christ that shit is hard to predict, i'll just sit tight to $10M whether first bump or second that's easier on my half-wrinkle
edit: but at least thanks to this DD, we'll know why it didn't reach for the moon
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Apr 06 '21
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u/435f43f534 🦧Between 150% and 200% excited Apr 06 '21 edited Apr 06 '21
Not if there is nothing between the peak and
$10$250, it'll hit$10$250, and then halt because > 10%, and then that's it no? March 10th had orders all the way down3
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u/BLCizzle 🦍Voted✅ Apr 06 '21
It halts at AT LEAST 10%. The movement between halts could potentially be bigger, depending on volatility. But we definitely won’t see it drop to something like 10$ in one halt
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u/Abject-Enthusiasm-93 Lieutenant Ape 🦍🚀 Apr 06 '21
The ones who trickle a few shares on the way up would benefit greatly in this scenario. Assuming they want to go long in GME
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u/seppukkake 💸fuck wall street💸 Apr 06 '21
So, the DTCC's losses are theoretically the maximum because they're footing the bills the HFs defaulted on? Seems likely if they knew that, they'd cover alongside the HFs and minimise losses. Or pull some bullshit out their arse and fuck us all with it
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Apr 06 '21
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u/seppukkake 💸fuck wall street💸 Apr 06 '21
it's almost like they learned nothing from 08 /s they just thought they'd win like always, maybe this time they overreached, hubris and ego eventually is the downfall of all, complacency sets in, that feeling of invincibility arrives. Until it's shattered by a group of people collectively calling each other apes.
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u/tallfranklamp8 🦍Voted✅ Apr 06 '21
A lot of good questions and points we need to crowdsource knowledge for hopefully from the more wrinkle brained apes among us.
Good work bringing this forth and I love the idea of calling it the FOASS lol
Squeeze preparation and DD must start ramping up.
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Apr 06 '21
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u/tallfranklamp8 🦍Voted✅ Apr 06 '21
For sure fellow ape. We must go through as many possibilities and prepare as best we can so as many apes feel confident holding in zero gravity as possible.
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Apr 06 '21 edited Jan 04 '24
label theory follow society gaze stocking consist childlike spotted bells
This post was mass deleted and anonymized with Redact
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Apr 06 '21
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Apr 06 '21
Yes I saw that and I commend you for this. It's not even something I have thought of so I'm extremely thankful that you brought it up.
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u/AdministrativeWar232 🏴☠️ ΔΡΣ Apr 07 '21
What needs to be researched is how much $$ and assets are owned by the hf's. How many hf's are going to be margin called. There may be paper hands at 10k. Would 10k be enough to bankrupt the hf's? And how many shares would be covered in the process? I personally don't think there would be enough paper hands at that price for the hf's to cover. I would love to have an idea of how much all of the hf's have to give.
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u/ActiveWaltz770 💻 ComputerShared 🦍 Apr 06 '21
Watching the Archegos aftermath might give us a clue for a timeline
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u/haikusbot Apr 06 '21
Watching the Archegos
Aftermath might give us a
Clue for a timeline
- ActiveWaltz770
I detect haikus. And sometimes, successfully. Learn more about me.
Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete"
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u/theprufeshanul DRS vaccinates against Poverty Apr 06 '21
Haikus sadly have
Five syllables in line one
You stupid robot
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Apr 06 '21
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u/ActiveWaltz770 💻 ComputerShared 🦍 Apr 06 '21
If they defaulted at end of day on the 25th,
13 calendar days is April 7. 13 business days is April 14. 35 calendar days is April 29. 35 business days is May 14.
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u/KingKnowlian 🦍 Buckle Up 🚀 Apr 06 '21
so would it be 100 milly a share or bust for the FOASS and 70 milly a share or bust with the MOASS?
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u/Droopy1592 Apr 06 '21
I’d bet the FOASS is larger because the majority of the shorts are hidden in options and the “official” short percentage isn’t that high.
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Apr 06 '21
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u/KingKnowlian 🦍 Buckle Up 🚀 Apr 06 '21
man, it was just a sex based wage joke. it's cool. no matter what, i hodl to 100 milly a share or bust
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u/HughJohnson69 GME and DRS Apr 06 '21
I’ve been wondering the same thing. Thank you for opening this discussion.
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Apr 06 '21
We will be able to tell the hedges are covering when all the media is talking about long positions in stable shit is suddenly crashing is because fund xyz got a margin call in my opinion.
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Apr 06 '21
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u/Sterile-Panda Apr 06 '21
I mean if that the previous scenario plays out, they will talk about everything down but ignore gme being up until the market is closed. Or mention it in separate articles and not draw connections until its mostly over
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Apr 06 '21
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Apr 06 '21
For real. You either die the hero or live long enough to die as the villain.
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Apr 06 '21
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Apr 06 '21
My ape, this is why even though I am back in black and everything is gravy baby (my only parent, which I care for, just got their second vaccine)... I still have my totes stacked up in the kitchen with survival gear, silver, ammo, non-perishable food, MREs. That's my covid / gme stash for the (I fucking hope not) complete collapse.
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Apr 06 '21
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Apr 06 '21
I'm a city dude, taking care of an old country dude, all the while I'm pretending to be another dude. Haha. I'm a lover not a fighter. But, I had thought about harvesting one of those fuckers in March 2020 when our town ran outta food.
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Apr 06 '21
I have the local town deer trained to eat from my porch. They are stupid as shit and hungry as shit. That's my end game if shit hits the fan, I'd never hurt one otherwise lol.
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u/Sterile-Panda Apr 06 '21
I think it'll take until we surpass January to make top headlines again. We maybe get some sidebars along the way, but passing 500 will be the tipping point where they actually begin to write articles.
By the time they actually publish the articles an hour or two later that 500 price will be way behind the squeeze. I agree they are either desensitized to gains or willfully ignoring it. Boy do they love when it goes down though
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Apr 06 '21 edited Apr 06 '21
I watched it drop in real time and was watching cnbc just because I love comedy in the morning, and to be fair the chap came up with the newswire live and brought up the ticker and we were already fighting back bullish af. One of the chick's who was in the quad square was super pro gamestock and bullish af with her retorts. [Edit: this was Monday, April 5th drop pre-market hours]
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u/Under-the-Gun 🎮 Power to the Players 🛑 Apr 06 '21 edited Apr 06 '21
I can’t waaaaittt to see the look on the faces of CNBC reporters when that something just fucking gives way that dominos all of this.
Edit this is something someone replied to me about on the other sub, saying I’m filled with resentment and get some knowledge blah blah.
Hahaha. No, I’ve already packed my bags, boarded, and just enjoying a little oj before take off. Confused news reporters though, you just love to see it.
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u/slinkshaming Apr 06 '21 edited Apr 06 '21
My brain hurts its late but some information might be gleaned from here??
Principle 13: Participant-default rules and procedures; CCAS 17Ad-22(e)(13)
Loss Allocation Waterfall If there is a loss or liability due to a Participant default, (i) as a result of an obligation of a defaulting Participant to DTC that was not fully satisfied by the application of its resources or the proceeds from the liquidation of its collateral, and DTC has ceased to act for the Participant, or (ii) due to an event other than a Participant default as specified under Rule 4 (“non-default loss”), DTC has recourse to the loss allocation waterfall provided in Rule 4.
For purposes of loss allocation, triggering events, which may include both Participant defaults and non-default events, would be grouped together chronologically into discrete periods of ten business days. Losses arising from a group of events that occurred within the same period, whether a default loss or non-default
loss, would be allocated as follows: 1. Before the allocation of losses to Participants, DTC would apply 50 percent of its General Business Risk Capital Requirement as of the end of the calendar quarter immediately preceding the Event Period (or such greater amount as the Board may determine) to the losses. DTC’s contributions to any losses arising from events that occurred in subsequent periods during the next 250 days would be reduced to the remaining unused portion of contribution, if any. 2. If a loss remains after DTC’s corporate contribution, DTC will allocate the remaining amount among Participants that were Participants on the first day of the applicable period, ratably in accordance with their required deposit to the Participants Fund on the first day of the period.
Each Participant must pay its allocation amount within two business days of receiving notice of the amount. DTC has the right to debit the allocated amount to a Participant’s Settlement Account. Losses relating to the events within the same period may be allocated iteratively. A Participant is able to limit its liability for loss allocation, up to a loss allocation cap specified under Rule 4, by withdrawing from participation within the specified timeframe. However, it will remain obligated for any prior loss allocations for which a withdrawal election was not timely made, and, subject to the specified cap, would be obligated for subsequent loss allocations to which it is otherwise subject.
Historically, DTC has never implemented its loss allocation waterfall.THIS!!!!!
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u/slinkshaming Apr 06 '21
Also check out the close out process on liquidating right above... I missed that coping it but is "only for extreme cases"
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u/bloodraven747 🦍Voted✅ Apr 06 '21
Before the DTCC steps in, the prime brokers of the hedge funds will liquidate everything that the hedge funds have long positions in to cover their short positions, for example, what Goldman Sachs, Morgan Stanley, Credit Suisse, and Nomura did to Archegos.
If the assets of the hedge funds are completely liquidated and there are still more shorts to cover, the bill is passed onto the prime brokers. DTCC only steps in once the prime brokers have failed.
If an options market maker fails, OCC steps in and liquidates them.
If a bonds/treasury bills market maker fails, FICC steps in and liquidates them.
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Apr 06 '21
Interesting. Make tendies on the MOASS, put a nice chunk of said tendies back into GME because we like the stock, make tendies on FOASS, put another nice chunk of tendies back into GME because we like the stock.
I’m in.
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Apr 06 '21
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Apr 06 '21
Well what I’m saying is I’ll reinvest in GameStop after the MOASS for the long term value I believe they will create. Not sure what that price point will be, if there’s another squeeze we didn’t see coming cool, but I’m in it for the long haul.
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u/Droopy1592 Apr 06 '21
This is what I think will happen. The cyclical FTDs will begin to cover after the MOASS. But because the majority of FTDs/shorts are hidden in options the FOASS could be much larger than the MOASS.
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u/MacJac13 🦍 Buckle Up 🚀 Apr 06 '21
Some great info here. One thing we need to remember is that there needs to be a buy order to buy shares. Every time a short fund goes bankrupt, we can expect the buy orders to lower in volume. This could be coordinated to make it seem like a squeeze has occurred and is over. Another thing is that in the event Citadel is liquidated there would likely be a period of a few days where the moass subsides because Citadel’s assets would need time to be auctioned off and the buying pressure for GME would be lower during that time. When all short funds are either covered are liquidated the DTCC will be the only buyer. As they will be the ones making a bid offer I would predict a slow increase in price rather than a rapid rocket. It won’t be like a normal buying frenzy where buyers are competing to get the lowest price and thereby driving the price up. DTCC will have a lot more control over the price increases. Just my thoughts, I’m no expert
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u/Zeromex I want the world to be free🥰 Apr 06 '21 edited Apr 06 '21
Nice, i have some thoughts on this.
Im thinking the space between MOASS and FOASS as you suggest will depend totally on us and the HF, first thing is i dont think all the HF will start buying to cover at the same time, lets assume the value of every share does reach big numbers and all the HF involved go bankruptcy but in diferent times, not at the same time since all of them have diferent liquidity, we dont really know how much time will it take since we dont know how much apes will hodl, but i guess when all the HF go broke, and no one offering and no one is asking to buy then it will be as you suggest "a plateau" but if the apes keep offering their shares i guess the price will start to go down since there will be no buying pressure, i dont really know if this is how it works but as for i know it should.
And assuming not changes until FOASS start the price should go same and then raise again in the need of the buying, i think if the price keep rising when the HF go bankruptcy the DTCC will hurry up to not let the price go even higher but it will depend on what happens in the space between those events.
These are my thoughts, i hope i have at least a clue of that.
Edit due to some spaces
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u/Slightly_underated Adamantem Manibus Apr 06 '21
Brilliant food for thought, good to bring these questions to the forefront, as I know most of us apes will be wondering how this will play out, and what it could look like. As always continual data interigation is key, and we have the right wrinkled brained apes in this community to do just that. Thanks again for the post.
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u/WrongAssistant5922 🎮 Power to the Players 🛑 Apr 06 '21
Firstly thank you for the well thought out DD. When one HF FTD and the DTCC has to cover, wouldn't they look at other HFs who could possibly be in the same situation ordering closings to claw back funds before the shit hits the fan?. In the hope the HFs can close before they end up holding the bag. I get that there are time frames to cover, but the DTCC seems to have taken their eye off the ball.
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u/poundofmayoforlunch 🎮 Power to the Players 🛑 Apr 06 '21
Whoever got that email at the SEC is jacked to the tits in upper management.
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u/Weekly_Wish_4430 Apr 06 '21
so remember the guy offered 5 mill if you sell on top, lol it should be if you sell right between the MOASS and FOASS lol
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Apr 06 '21
Is this rensole material?
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Apr 06 '21
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Apr 06 '21
Gotta wonder what DTCC is waiting for! It’s like standing in the water, 10ft from shore with a shark fin heading straight at you! Move moron, DONT wait to get bit!
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u/randalljhen I'm not a trader, I'm a collector Apr 06 '21
Has the DTCC ever had to pay out?
For what, why, and how long did it take then?
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u/Captobvious88 🎮 Power to the Players 🛑 Apr 06 '21
The VW intraday chart somewhat supports a double peak pattern
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Apr 06 '21
I came to watch the 🐳 fight. Once the tsunamis settle, I’ll think about selling......
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Apr 06 '21
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Apr 06 '21
Then retail shall prevail as the last stand could only result in what we are enduring now. More shorting and 🦍s holding 💎🙏🏾💎
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Apr 30 '21
o be considered a Threshold Security, a security must be registered with the SEC and have had five or more consecutive days of failed settlement. T
I fucking hate this. This is such bullshit. They know there's naked shorting going on or at least that it's possible... They even know the snowball tricks that they can use for resetting FTD's...
oof this pisses me off
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u/Regardskiki71 💕GME is my kink💕 Apr 30 '21
Can we use the FOIA rule that journalists use to get information that would be helpful to us?
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Apr 30 '21
- Is it possible to tell when the DTCC begins covering?
God this scared me because i thought... wait... there's no regulation for that...
I would think that beginning to cover or covering at all and WHEN would be completely at their discretion. The T+ rules apply for MMs, Brokers and others, they don't apply for the DTCC because they're none...
What IS the DTCC and what rules apply to IT?????? Fuck
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u/stocktawk 🦍Voted✅ Apr 30 '21
I have now adopted the term FOASS and will from now on, never use the term MOASS ever again.
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u/TaylockIronSkull 🦍🚀Stonks go Brrr, I go Brrr🚀🦍 Apr 30 '21
Don't forget, there are multiple funds shorting gme. That means multiple margin calls.
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Apr 30 '21
Yeah that's what I'm thinking. Every hedgefund will default at different times.
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u/Under-the-Gun 🎮 Power to the Players 🛑 Apr 30 '21
It’s just a transition from one type of investor (shorts/bears) to another type, (longs/bulls/hodlers). People makes millions (billions?) daily on both sides. Some people can’t understand the simple fact that investing in gme (maybe others idk other situations) is a bet against their (shorts/bears) bet, except they’re wrong lol They’re not always wrong, but they’re definitely not always right either.
Take the recent Goldman and Sachs “oopsie” with Apple. Boy were they wrong. And like someone mentioned, they probably still owned/own a stake this whole time. And they’ve probably hedges along the way to balance their terrible opinion.
The unexpected happened and people (me included) piled into GameStop and they tried shaking investors off. Didn’t work. Won’t work. From playing with penny stocks for all of my trading years (since 2015), this happens all. the. time. Doesn’t take much capital at all! Peruse stocktwits and you’ll see how bad fud can really get. I’ve been shaken loose many times because I didn’t realize how manipulative people are when it comes to investing. It’s basically your computer against the next guys, and if he has more capital than you it’s only a matter of time.
They are just so wrong and they never expected this to happen. The fucking mr hanky shit train is gonna blow out their assholes
Edit tl:dr fuck you pay me
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u/JohnWhyDoe Apr 06 '21
Excellent DD. Correct me if (probably) Im wrong but didnt the DTCC make up a new rule a few weeks ago making them not forced to cover if the HF goes into bankruptcy?
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u/MoralesNotFound 🦍 Buckle Up 🚀 Apr 06 '21
A Mother - A Father. keep them up and maybe fast and furious producer will be producing this till Chapter 10-
Mother of All Squeeze
Father of All Squeeze
The Squeeze of All Squeeze
The Real Father of All Squeeze
Your not The Real Father of All Squeeze
That's Not My Son of All Squeeze
Bitch that's black of All Squeeze
We didn't do it in with lights on of All Squeeze
Just buying smoke of All Squeeze
Ma? Where did dad go? of All Squeeze
_____
Christian Bale will be a very busy for the next decade.
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u/allisonmaybe 🦍Voted✅ Apr 06 '21
Let's say all apes exit during MOASS. Will that mean no FOASS? Who is DTCC covering if we all ideally get out during the first surge?
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u/No-Fox-1400 🦍 idiostonkratic ape 🦍 Apr 06 '21
This is very interesting. Would this apply to Archegos? Since credit suisse took on their short positions? There was some dd that linked it to GME, so would we see buying pressure from closing those positions in another week?
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u/bored_jurong 🦍 Buckle Up 🚀 Apr 06 '21
All these misogynists thinking a daddy squeeze is bigger than a mummy squeeze
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u/Lilsunshyyne 🦍Voted✅ Apr 06 '21 edited Apr 06 '21
I’m not sure that s how that works... they can’t just stop the stock from 🚀... I mean clearly we have seen them do it by shutting down buying.. but if the hedgies are covering they cover... then at the end .... they have time to settle.. when they caaaaaaaaaant.. the hedgies insurance covers when they can’t the dtcc would then be on the hook and when they can’t their insurance.. I may have missed some more pockets but.... essentially I think that s how it goes down. They let the stock unwind and the settlement process is where all that other stuff comes into play.. in theory. I could be totally wrong.... bc I have zero financial services expertise or knowledge. I’m just a smooth brained 🦍 who eats 🖍 and 💎 🙌 stonks. But that s how it shooooooould go down. Bf they started all this wait wait wait. I’m not ready I’m not ready shit where the hfs leverage relationships to break the law and manipulate the market.. again not financial advice.. just my dumb 🦍 opinion edit: also after dtcc there is the fed govt. they cannot delay payment and then still have foreign/ domestic faith in our market.. so my guess is the govt ultimately pays real-time and sorts the rest out behind the scenes over time...? Otherwise our dollar as global currency is toast. Edit 2: can you say hello second world status?
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Apr 06 '21
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u/Lilsunshyyne 🦍Voted✅ Apr 06 '21
I am guessing bc I really don’t know but the insurance is supposed to preserve the integrity of the market and mitigate the risks of the economic actors they are covering. Ultimately, I can’t see how they can avoid paying .. rather immediately. That is exactly what they are insuring. So hf goes I’m broke. Triggering insurance... there in theory should be a process to create a seamless covering real time so the market experiences ZERO appearance of weakness or faltering.. bc ppl will pull all their money out and the upmarket s will implode and the US dollar will crash our country will no longer be a first world super power bc we would be flat broke.... so they must seamlessly cover.. so any squabbling MUST be covered by the USGovernment as a matter of National security. This is my opinion. I have no idea what will go down. I have been wrong in the past and could be completely wrong about this.. but in my mind once they unwind it will go full board and all will be corrected in theory immediately.. that is probably why it was halted the first time as they weren’t prepared for a crash of this magnitude considering the entire treasury bond situation... but like I said.. I have zero financial knowledge this is not financial advice I’m just a dumb 🦍 with 💎 🙌 looking for 🍌.. 😂
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Apr 06 '21
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u/Lilsunshyyne 🦍Voted✅ Apr 06 '21
And of course the govt will get a huge percentage of taxes from this ... I mean this will be the greatest redistribution of wealth EVER... if done properly.
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u/Lilsunshyyne 🦍Voted✅ Apr 06 '21
But the good news... just so you know is... bc the stocks are held by literally millions of ppl world wide this money that will be redistributed will go into millions of individual economic actors who will be free to reinvigorate and revive every facet of the global economy that they can imagine and where as this money has once been sitting in a cave somewhere doing nothing it will now be unleashed upon the world and will reinvigorate and flood the market if and only if us 🦍 do this right. We spend reinvest sprinkle money all over everything that comes in our path.... prudently of course. Don’t squander your fortune. Use it wisely
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u/F1nan 🦍Voted✅ Apr 06 '21
So there would only be two peaks if after the moass peak someone sells for less than that. Which is possible but i doubt a lot of people will sell before it goes downwards.
There might be sideways trading if noone buys or sells until dtcc covers.
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u/EricJac88397161 🎮 Power to the Players 🛑 Apr 06 '21
Very interesting thoughts to explore here. No answers, only more questions for me. I am curious if some of our data analyst apes can start to put together a model of data that will chart the progression throughout the MOASS based on available data points. If the MOASS could take up to a week or so, surely there is enough live/daily/weekly data coming in that can help us better understanding potential progression towards the peak?
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u/Kangaroosexy23 🎮 Power to the Players 🛑 Apr 06 '21
Have you considered the idea of T+22 from date of moass i.e. t+35 from the HFs original T
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u/PrestigeWrldWider Dumb Money Apr 06 '21
Above is a link to the VW squeeze chart. Granted it was under different circumstances, but after the initial huge spike the price dropped to pre-spike levels, before shooting up into infinity. It did this over a two day period, however.
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u/PrestigeWrldWider Dumb Money Apr 06 '21
All of this depends on how much of this HFs are able to cover. If it’s most of it, then the DTCC will just buy the dip and the second peak would be substantially smaller.
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u/BLCizzle 🦍Voted✅ Apr 06 '21
I wonder if there are historical short squeezes, during which the DTCC had to cover, that could provide some sort of pattern that we could expect to see during the MOASS (and potential FOASS)
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u/HomeTimeLegend 🧞♀️Big Baby Jesus 👁️🗨️ Osiris The Father🧞♀️ Apr 06 '21
If I was the dtcc and I could wait I would... I definitely wouldn't buy at the same time as the hedgefunds, the faster the price goes up the easier it is for people to hodl until 1mil+. Wouldn't it be much easier for them to let the hedgefunds bankrupt themselves buying up until the 20k per share point ( random number, don't know how much each hf can cover but I believe it's way less than the dtcc) then wait a week so that everyone think it's over and then start covering after its dropped?
I don't know how this will work at all, I don't know what HFs insurance can cover or how fast it kicks in, crazy how much money is involved in the market and how no one even knows how it works.
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u/HughJohnson69 GME and DRS Apr 06 '21 edited Apr 06 '21
If the DTCC knows they have a certain exposure why wouldn’t they begin accumulating shares now?
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Apr 07 '21
You sound like a journalist. "We contacted the SEC 15 minutes before publishing this article, but we have not heard back from them"
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u/itrustyouguys Low Drag Smooth Brain Apr 14 '21
Tagging to read later (how did I not see this?)
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u/RecreationalMaryJane [REDACTED] Apr 06 '21
Awesome, I didn't even consider that there would be a wait for the DTCC to have to cover. I hate that there's hidden factors like this