Recently, a fiery Wall Street staged a "counterattack battle" in which "American retail investors" attacked the big short positions of Wall Street institutions, with the goal of "GameStop" American stocks. The plot was ups and downs. In order to let everyone know the ins and outs better, I would like to introduce the background and the whole process to you here.

First of all, let's introduce the stock GameStop. GameStop is an old-fashioned retailer of game products, mainly focusing on offline retail, and its performance has been unsatisfactory. In 22, it suffered huge losses, with net sales falling by 3% year-on-year, and even suffered losses. Its share price once fell to $3, and many people sold the stock short, calling it junk stock, similar to China's ST*.

On January 11th, 221, Ryan, the founder of Chewy, a former pet e-commerce, took two colleagues to the board of directors of GME. To be precise, because the share price of 22 is very low, Ryan has started a large number of shares in GME and justifiably became the second largest shareholder. His ideal is to make GameStop "the Amazon of the game industry", and after joining, he will start to adjust the company's strategy. If this is equivalent to reorganization in China, it will be extremely beneficial. In addition, because the United States is deeply affected by the epidemic and the number of unemployed people has soared, many people have nothing to do at home but play a few games to kill time. Combined with the above two factors and various media publicity, GameStop's share price recovered. As of January 14th, GameStop's share price had returned from $3 to $4.

At this time, a short-selling organization, Citron Research, also targeted the stock, but it didn't want to raise the stock, but did the reverse operation, wanted to short the stock, and announced on Twitter in a high-profile way that the stock was worth at most $2, and announced-you retail investors should sell it quickly, otherwise it will become a harvested leek sooner or later.

As the most famous short-selling institution in the world, Citron Research, as long as it takes a fancy to the stock that it wants to short, its share price will immediately plummet. Since Citron wants to short "GameStop", it seems that it is almost certain that it will plummet.

However, some non-governmental forces have long been displeased with these institutions. After Citron issued a short warning, a mysterious organization, WallstressBets(WSB), a well-known stock forum --Reddit Forum, issued a call to organize American retail investors to fight against Citron together. We can't let these institutions say whatever they want, and everyone resists together, so American retail investors responded to the call and bought "GameStop" to raise the stock price. They are ready to join forces to fight against the bears. In order to expand their influence, they also set off a "storm to encourage novices to enter the ‘GameStop'" on Reddit. So in addition to the old investors in the forum, and a large number of new stock market recruits joined, the resistance team expanded rapidly, and they only had one purpose: to kill short institutions! Everyone gathered firewood, and the stock price quickly rose by 25 dollars because of a large amount of new funds to buy.

Up to now, the situation is as follows:

Citron stopped releasing information and surrendered ...

Point72 (hedge fund) was 75 million US dollars, all of which was lost ...

Citadel (hedge fund) was 2 billion US dollars, which was exhausted ...

Melvin (with hundreds of billions of assets). Just announced the liquidation

According to statistics, the short-selling losses exceeded $5 billion.

Look at the record of "American retail investors". A retail investor on WallstressBets showed his success, and he actually made a profit of 21,%. The American retail investors won the counterattack completely, and the record was fruitful!

On January 26th, Musk, the boss of Tesla, who was deeply hurt by citron's short selling, also tweeted, adding another fire to the soaring game station. He shouted "Gamestonk! !” (Stonk means "heavy shelling"), and posted a link pointing to the wallstreetbets section on Reddit, an American social forum, which was a platform for American retail investors, and also counted the revenge of Shannon's short selling Tesla.

However, Wall Street institutions are not willing to give up, so the archetype of the movie "The Big Bear" by Michael Burry, a hedge fund tycoon, violently criticized this retail investor's organized behavior of raising the stock price of the GameStop and suppressing the short-term trading of short sellers on January 26th, local time, and called on American regulators to investigate them.

Adena Friedman, CEO of NASDAQ Exchange, also said in an interview with CNBC on Wednesday that she would monitor the comments on social media and suspend stock trading if it was found that the comments were related to the abnormal performance of stocks.

According to CNBC, the brokerage institutions such as Robin Hood restricted the trading of the company's shares on the 28th local time, and investors could only sell their existing positions but not buy them. After the restrictions were announced, GameStop's stock, which had soared before, plummeted suddenly. GameStop, whose share price once exceeded $5, closed down 44% on Thursday.

Of course, a large number of "American retail investors" were not willing to give in easily. At once, dozens of protesters gathered outside the new york Stock Exchange to protest against Robin Hood's behavior of restricting trading. These people held signs of "taxing Wall Street trading" and shouted "I want my money now" and "We want a free market". Protesters attacked and abused Robin Hood on the Internet, and the public was furious, so Robin Hood immediately said that he would allow "limited purchases" on the next Friday. Now someone has filed a class action lawsuit against Robin Hood, saying that Robin Hood "manipulates the market" and ignores the interests of his customers. At present, Robin Hood has not responded to this.

But we China A-share retail investors should not be too happy. The probability of this happening in A-share market is extremely low. In fact, there should be little chance in the future in the United States. Now the A-share market emphasizes "de-retailing", and retail investors hand over their money to professional fund institutions to be taken care of by fund managers. Especially after the fund surge in 22, the strength of A-share institutions is getting stronger and stronger, and the strength of retail investors is getting weaker and weaker. Moreover, there is no highly leveraged equity in China, and there will be no such thing as a call option inciting short capital.

so "the legend of counterattack" will not appear in A shares. Retail investors are always the first wave of leeks to be harvested, but this at least reminds A-share institutions that it is not good to trample leeks too much. If leeks are forced, they can also support you and choke you to death.

What do you think? Do we have a chance to win a big battle with bookmakers or institutions in A shares? Everyone is welcome to comment [yi tooth]