<story><title>Hedge fund Melvin sustains 53% loss after Reddit onslaught</title><url>https://arstechnica.com/gadgets/2021/01/hedge-fund-melvin-sustains-53-loss-after-reddit-onslaught/</url></story><parent_chain><item><author>robbomacrae</author><text>So many conspiracy theories on both sides these days. Don&amp;#x27;t forget Ocram&amp;#x27;s razor. I don&amp;#x27;t think there are many sophisticated actors here at all. I&amp;#x27;m speaking as one who did DD on GME back in September and throw some money in (thought it was a great opportunity mainly because of Cohen + 
the upcoming console super cycle with a tiny chance of squeeze thrown in) It was a smart discovery by WSB and got a bit more than average attention but then it kept growing.. every week more DD&amp;#x27;s posted and more attention. Now the entire sub is so dedicated to GME its actually annoying.&lt;p&gt;I think it really is the simple dumb story of a really bad bet by a hedge fund getting called out online and a with more and more jumping on the wagon and with the hedge fund making more and more dumb mistakes. And everyone is underestimating the redditors who, behind the emojis and crap talk, are actually pretty smart. Collectively they can, and did, cause this.. no need to invent other actors to explain it.</text></item><item><author>kyrieeschaton</author><text>How much evidence is there that the &amp;quot;reddit onslaught&amp;quot; actually moved the price, as opposed to them being the stalking horse for more sophisticated actors with more capital exercising a vanilla short squeeze strategy?</text></item></parent_chain><comment><author>jcfrei</author><text>It&amp;#x27;s virtually guaranteed that this stock popped up on the radars of the funds who run momentum trading strategies. And it would be very weird for a lot of them not to jump on that bandwagon (at the very least because it&amp;#x27;s their mandate to do so).</text></comment>
<story><title>Hedge fund Melvin sustains 53% loss after Reddit onslaught</title><url>https://arstechnica.com/gadgets/2021/01/hedge-fund-melvin-sustains-53-loss-after-reddit-onslaught/</url></story><parent_chain><item><author>robbomacrae</author><text>So many conspiracy theories on both sides these days. Don&amp;#x27;t forget Ocram&amp;#x27;s razor. I don&amp;#x27;t think there are many sophisticated actors here at all. I&amp;#x27;m speaking as one who did DD on GME back in September and throw some money in (thought it was a great opportunity mainly because of Cohen + 
the upcoming console super cycle with a tiny chance of squeeze thrown in) It was a smart discovery by WSB and got a bit more than average attention but then it kept growing.. every week more DD&amp;#x27;s posted and more attention. Now the entire sub is so dedicated to GME its actually annoying.&lt;p&gt;I think it really is the simple dumb story of a really bad bet by a hedge fund getting called out online and a with more and more jumping on the wagon and with the hedge fund making more and more dumb mistakes. And everyone is underestimating the redditors who, behind the emojis and crap talk, are actually pretty smart. Collectively they can, and did, cause this.. no need to invent other actors to explain it.</text></item><item><author>kyrieeschaton</author><text>How much evidence is there that the &amp;quot;reddit onslaught&amp;quot; actually moved the price, as opposed to them being the stalking horse for more sophisticated actors with more capital exercising a vanilla short squeeze strategy?</text></item></parent_chain><comment><author>rantwasp</author><text>this is a classic example of a positive feedback loop. wsb did not do all of this but they were the spark that created the fire.</text></comment>