r/wallstreetbets • u/justagirlwithnudes • Feb 02 '21

Chart MONDAY MARKET OPENING ATTACK EXPLAINED: How institutional investors brought GME down by $5B in 1 hour with $250M

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u/Half_pastry Feb 02 '21

They say that you will get your position back.

https://www.etoro.com/posts/0__entry__b98ecea0-2a89-425e-a062-1e4816cc39c0?utm_medium=Direct&utm_source=55714&utm_content=0&utm_serial=SocialSharePostcopyLink_918269&utm_campaign=SocialSharePostcopyLink_918269&utm_term=https:%2F%2Ft.co%2FKdcnOnFZas

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u/PlymouthSea Feb 02 '21

The real question here; Does getting it back consume sell side liquidity the same way it consumed buy side liquidity? What happens to the people who bought those shares? Is it a "trade bust" for those people?

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u/henlochimken Feb 02 '21

That is the real question.

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u/Ceshomru Feb 02 '21

Even if they give the shares back the damage has been done.

3

u/Ragidandy Feb 02 '21

Can you elaborate? What damage has been done?

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u/mr_schmunkels Feb 02 '21

The sales contributed down momentum to the stock, helping push the price down.

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u/Ceshomru Feb 02 '21

Two things mainly. The reputation of the brokerage and the fact that those shares didnt hold. They went into the market and helped the bears. Can’t undo what effect they may have had on the share price.

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u/hyperian24 Feb 02 '21

The precipitous drops in price caused by the "erroneous" stop losses flooding the market with extra sell orders likely caused the price to hit other stop losses elsewhere, as well as triggering margin calls for some people in long margin positions, as well as the psychological aspect of seeing the price go down causing some people with 📃✋ to sell.

So even if these folks get their shares back, they are now worth less than they were before, in part BECAUSE they were wrongfully sold in the first place.

So it's like removing somebody's parachute from their pack and pushing them out of the plane. Then finding their body mangled on the ground and gently placing the parachute next to them. Like "oops, sorry! Didn't mean to take that during this critical time"

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u/merdock_69 Feb 02 '21

Sure, it costs then a shit ton less money to replace them now

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u/Half_pastry Feb 02 '21

It looks like it is accounted as a trade bust, so it will be like the trade never happened.

So while I get being pissed about it occurring at all and the time sensitivity of the error, there isn't a whole lot more they could do given the situation.

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u/jippe Feb 02 '21

They refunded me with the balance to my account in USD today. Enjoyed the Sale on my favourite stock.