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The GameStop Short Squeeze (discoursemagazine.com)
23 points by Merciernmon 1962 days ago
4 comments

Hard data on outstanding shorts is posted semi-monthly, and even that data is probably stale a week or so. Daily regulatory reporting of short positions doesn't exist. Thus, assertions that "the squeeze has not yet occurred" should be treated with caution. It might be true, but it might also be a mirage.

There are various firms that look at market transaction data to estimate outstanding short positions. However, they rely upon various assumptions since firms don't report how may shares they purchased to cover shorts. Hence, claims that GME is 130% oversubscribed or any other assessment could be wildly off from reality.

Also note retail investors are around 15% of GME. Most shares are held by institutional investors. What's going on isn't David vs Goliath, the situation is more diffuse.

There is a company, S3 Partners, that is tapped into many large WS players that has daily short data. It is not perfectly accurate but is largely so. They sell this data, of course, and publish tidbits of data about salient stocks on Twitter [0]

0: https://twitter.com/ihors3

0:

And they also really can't model the depth of the possible ways to close a short position, e.g. synthetic long positions, swaps, and other fancy financial wizardry that is above and beyond just buying one share per share you're short immediately.
Interesting, thanks for the link!
Author here. Happy to take your questions and feedback! Thanks for reading.
The narrative behind this story just shows you how legally and illegally corrupt and unfair the entire system is, and how the media and regulators happily stand behind it.
The retail traders and the hedge funds are both pawns in the game of the political class who can legally insider trade.
I don't think politicians are making more money than the hedge fund managers. Why would you think that they have more knowledge than the hedge funds? Likely the hedge funds are managing their money. These congress people are not sitting at home in front of a Fidelity account and making trades after they hear from a lobbyist about big market news.
In the past it really was legal for politicians to insider trade but that was ostensibly rolled back by the STOCK act: https://www.cbsnews.com/news/obama-signs-stock-act-to-ban-co...

I guess you could argue that there are still avenues to wiggle around the new rules but at least the width of the corridor was reduced.

Can you share some examples of insider trades by the political class that ended up becoming public knowledge?
Members of the Political class sold after private briefings on coronavirus months before it became known to the public.
The mainstream media narrative behind this story just shows you how legally and illegally corrupt and unfair the entire system is, and how the media and regulators happily stand behind it.