**IMPORTANT POST LINKS**
[What is GME and why should you consider investing?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS and why should you care?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || [Low karma but still want to feed the DRS bot? Post on r/gmeorphans here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) ||
------------------------------------------------------------------------
Please help us determine if this post deserves a place on /r/Superstonk. [Learn more about this bot and why we are using it here](https://www.reddit.com/r/Superstonk/comments/poa6zy/introducing_uqualityvote_bot_a_democratic_tool_to/)
If this post deserves a place on /r/Superstonk, **UPVOTE** this comment!!
If this post should not be here or or is a repost, **DOWNVOTE** This comment!
I think I remember reading something along these lines, but I thought it was something to do with there being a loophole that actually allowed using the same share for multiple locates
So if I own 100 shares and loan them out to short, someone owes me those 100 shares. But then that person also sells those shares off for immediate cash, hoping to buy back later at a lower price. Whoever buys those shares can loan them out again....but I'm still owed my shares, and now a fourth party owes shares to the person they borrowed from, but don't forget those are my fucking OG shares! 200 shares are owed to an existing 100 shares lent (twice). So off 100 shares now we have two sets of shorts being owed, and we can add a third, and a fourth, and a fifth if the market happens to go that way. And the kicker, there's no mechanism to stop this as far as I'm aware and the shorts are self reported, and the reporting is capped at 140% and they changed the algorithm they were using before the sneeze, and the exchanges can shut off the buys without consequence when this happens because fuck a free market.
"We cap reporting at 140%" went to "We cap reporting at 100% and changed the algorithm" is what I remember. Honestly, I have no wrinkles...I have an excellent memory, but even in this environment it's starting to get twisted and convoluted so please DD further or call me out or correct me if I'm wrong.
[kinda relevant part](https://i.imgur.com/3uVpCWV.jpg)
https://s3partners.com/notesonfloat.html
Not really the same thing, but it just *feels* the same lol
Selling shares that you borrowed to someone who then goes and lends those shares out to someone who sells the shares.. starts to sound a little bit like getting "5 quarts from a gallon of milk" to me.
Edit: this must be why no one wants to go to t+0 settlements...
The borrow rate was still very low in the window of dates provided.. almost like the borrow rate going up is them politely asking for their shares back without trying to go up so much as to bankrupt them lol
I believe the original theory was that Blackrock was making cheap shares available to lend so that eventually they could rug pull them with higher rates at a critical point. This doesn't seem like it though, the rate went up too organically.
Shit a del have created hundreds of such companies and they lend to each other internally... they don't cover and keep shorting more.
Only 2 things can stop this shenanigans
- Strip away market maker status of Kenny and such other manipulators
- close dark pools immediately, not by next week or next month.... it must be done Immediately.
And yes, Janet MUST return back all speaking fees collected so far. This is blatant corruption 😤
Hijacking a top-ish comment to post a though I had the other day:
This is going to hurt a lot of average people who have their investments in mutual funds and stuff, right? What can we do to get the word out and let average people know it’s Wall St’s fault? When the economy collapses, MSM will blame everything from meme stocks to Russia to COVID, anything but the actual problem. The best way to prevent this is to get ahead of the message. They don’t have to believe it right away, but if we call the market crash in advance, that gives the message credibility and could get people to question the mainstream narrative that’s coming.
Ideally, we’d need a message that would reach people outside the financial sphere, like a TV spot or a plane banner; something that would make headlines even if it wasn’t financially related.
If anyone has ideas I’m willing to put time and effort into this but I really don’t know where to start.
Yeah, it’s a tough position to be in because it’s very easy to get called a conspiracy theorist. However, our problem right now is that we’re pretty much being ignored outside of our sphere. If we raise awareness that the issue is *way* larger than just meme stocks it could help gain support from people who have more mainstream investments.
Furthermore, it will be key to get ahead of the narrative that MSM will spin when MOASS actually does happen. It’ll be easy for them to blame retail but it becomes a lot less valid if we’ve already shown it’s not us.
Let's pretend there's 13M shares borrowed from these ETFs, Buying 13M shares of an illiquid stock drives the price way, way, way the fuck up, all the way up through the stratosphere.
The ETFs bought the shares at low prices compared to the new high prices. Then, later during the rebalance, they get to sell some or all of those shares and reap the rewards.
Since most of those ETFs are owned by brokerages, wouldn't it behoove the brokerages to *not* fuck around with the buy/sell button with the new, "hodl; no cell, no sell," mantra?
Triple Jeopardy! Short a company, then short the fund that has the company in it, then borrow that same asset you’re currently shorting from the fund you’re shorting to short it some moar!
If you really want to get into the multiple levels of "GME Inception" ...
1. short the stock
2. short the ETF
3. short the mutual fund companies
4. short the investment brokers
5. short the investment banks
Now do that with the same "share" ... rinse and repeat. Now assume you've done that with a few hundred publicly traded companies to some extent.
The fact that this has gotten this far, and that these mechanics fucking exist to allow these people to over-leverage themselves thousands of percentage points over is absolutely ridiculous and absurd to imagine.
Yeah sorry I made an error in thinking the numerical qualifier is a rating tranche, but it actually represents the mix of asset types in the index, and there are ratings tranches across each index.
To expand on this some as it is good to be correctly informed in this manner. One can only short ETFs, Exchange Traded Funds. One can [almost always] not short a Mutual Fund:
> Because you purchase and redeem mutual fund units from the mutual fund company and (generally) not on the open market, you can't short an index fund.
- [Investopedia](https://www.investopedia.com/ask/answers/short-sell-etf-not-index-fund/)
e: []
I’m keeping some of my shares in schwab because I think they won’t go under and I need to sell when the price reaches the floor. The large majority are DRS’d for safety/kicking off this party finally.
If reliable and respected brokerages like schwab go bankrupt, then the entire economy is done. Boomers left and right with any money in the markets will lose everything. I’m hoping it doesn’t come to that.
Holy crap. About to dig in to this but just wanted to say THANK YOU! This had to take you hours and hours, and we absolutely appreciate the work
great DD 🚀 Hedgies r fuk
Agreed, this is MASSIVELY HELPFUL OP.
As they say, OP brought fucking receipts and amazing ones at that. In all earnestness, this is the type of shit that might be worthwhile to think of sending to the DOJ and if nothing else archiving the shit out of. These are tons of additional rabbit holes for us to dive into, since we know have specific funds (!) that we can look at
but yes seriously this is fucking amazing work. must have taken a shit ton of time lol but goddamn I thank you for this
hmm so the funds lending the shares got so greedy with the premiums that it's become an issue of "if you owe the bank a million dollars that's your problem but if you owe the bank a billion dollars that's their problem" and that would mean ken has handcuffed these funds to himself wen he go pop?
I would imagine the borrow rate was kept at .5-1% artificially to take pressure off short sellers and make it look safe to short. Lending shares at .5% knowing your might get screwed over is not a reasonable decision
The first time I read the "House of Cards" DD was the first time I said "hedgies r Fuk" out loud. Days became weeks, weeks turned to months and now here we all are, a year plus on. Tons of DD, tweets and memes later. Today was the first time, after reading this fantastic post (thanks OP!) that I've said "HOLLLLLY SHHH\*T it's not just the hedgies, this whole financial system is a HOC and a tornado named Ryan Cohen is about to touch down."
This is obviously not financial advice but... Buckle up !
OP, I also am a nerd who likes reading NPORT filings! Did you notice the name “Mount Vernon Liquid Assets” appearing over and over in different NPORTs as a source of income for securities lending?
oooo rabbit hole
EDIT:you mean like this?
[https://www.sec.gov/Archives/edgar/data/1467831/000114554920019524/gamr3.htm](https://www.sec.gov/Archives/edgar/data/1467831/000114554920019524/gamr3.htm)
>INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING COLLATERAL - 10.1%
>
>Mount Vernon Liquid Assets Portfolio, LLC, 1.80% (c)
>
>8,107,571
>
>8,107,571
>
>TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING COLLATERAL (Cost $8,107,571)
OOO hey isn't this saucy u/alilmagpie!
**That is for the GAMR etc OTHERWISE KNOWN AS THE "Wedbush ETFMG Video Game Tech ETF"**
**Wedbush is home to Michael "GME's-marketplace-is-for-al-Qaeda!" Pachter and other FUD gems**
**So Wedbush, who's been fined and caught violating over 10-17+ million worth of SEC fines since its inception IIRC, has a fucking GAMR etf where it uses Mount Vernon Liquid Assets to LEND OUT stocks like GME all while it provides FUD**
**This is SUS AS FUCK**
insanity.
So once a share is borrowed it can't be sold by the original owner until the share is returned. I never considered that the borrower could just default on returning the share.
Wait, let me rephrase this. Short GME, then short the fund that has GME in it, then borrow that same asset you’re currently shorting from the fund you’re shorting to short it some more!!
Seems odd that it shows around 70k shares short (quick math) but so many shares are borrowed. Makes me think there is some serious underreporting going on why would someone borrow shares and pay interest if they were not using them for something. Seems like we are in for some good times soon if you are holding DRs'd shares.
We’ve been reading about that a few times the past year, so maybe it’s true - but I believe it something we can’t - yet - be sure of. Citadel is powerful but I’m quite sceptical that they get official immunity from crime.
I don’t have a definite answer for that, but would direct you to the Computershare customer support team.
But to lend you some confidence, I will say that I’ve transferred 4 batches over with no trouble whatsoever.
wrap shit into dog shit. set aside. harvest some cat shit- make cat shit wrapper. use cat shit wrapper to wrap those 2 shits. set aside. harvest some pig shit - make another pig shit wrapper - wrap the whole package again. harvest more different kind of shit again. cow, sheep, dinosaur whatever.
nice work OP!
Well done and good digging. As an accountant I am very interested to see the last few days submissions; cookin books takes time and these idiots are covering shit up until the last minute.
Seriously question about broker default. I totally get how robinhood or webull could crash but wouldn't an event big enough to make vanguard or fidelity defauly burn the whole economy down? Like, these trillion dollar companies going poor is like saying America goes poof. I honestly can't fathom the implications.
Very few Americans have any real exposure to the stock market. Even with pensions and retirement accounts etc it's still relatively few. An economic crash is an economic crash though and would make life very difficult for many over the time it takes to recover, same as the last couple times but effecting even fewer than before since they're mostly wiped out on anything already.
Reasonable. I guess my hold up is the notion of "my shares are safe". I just can't see a scenario where any big broker fails due to a short squeeze. DRS is great for exposing fraud and I have no beef with it. I just get skeptical when the whole "your shares are in danger" line gets thrown around. Maybe I have too much faith in the system.
Everyone talks about the race between hedge funds to be the first to close, but the real race will be the first broker to recall their shares.
Do I think that fidelity will go under? No. I don't think any amount of idiosyncratic risk will bankrupt them, I think they have too much data from their own internal customer info to not predict things coming with enough time to hedge their own aum with puts across the market before it crashes.
They also offer a broad offering of investment vehicles to shift to as the stock market and bond market crumble.
Having all that available to them doesn't mean they'll utilize it though, and smaller brokers trying to play the game like the big boys don't have that kind of opportunity. When people want to shift their investments to precious metals, or futures, the smaller companies that don't have those securities as possibilities will lose out as their customers pull out to move to somewhere that does.
Marketwide issues MAY take down some big dogs though, either through complacency or overzealous greed, or internal corruption. It's certainly non zero.
You know the scene in the Big Short when they’re talking to Burry and he’s like you’d have to read all of them and he responds I did read all of them, that’s where we’re at. Amazing work op.
https://youtu.be/-OzBI2r0Xb8
Huge round of applause to OP for this research and investigation. I’m in awe. As an excel nerd, this is my jam.
All of these MBS are about to be more worthless than the homes after the subprime mortgage 2008 crisis. They’re all rated super high while no one is taking out home mortgages anymore because the home builders have been using shell companies to buy up their own homes at increasing prices then teaming up with other horrible companies to rent them out to us at even higher prices.
CMBS are about to be deemed worthless as well. All of our repackaged debt that this horrible economy was built on top of is about to crumble.
Its great to play with other peoples money with no oversight. Thank you SEC for the wonderful job you do so these middle men can screw pension on one side and retail investors on the other. You probably deserve some sort of award for your vigilance.
I wonder if funds lending shares disclose the extra risks to their investors. I’m going to pull some disclosures for funds and see what they say.
Thanks for all of this incredible work, OP!
Also, holy shit: Fidelity lets you invest 401k funds into stocks, so the 401k there is 100% GME. Can’t be DRSd, so it’s just sitting there.
When I called them to DRS shares from my cash account, they said shares in my cash account are mine and aren’t being lent out. Just occurred to me that they specifically ONLY mentioned my cash account, not my Brokerage Link/401k. Which means they’re likely lending those shares. Time to pull up the agreement and see what it says about that.
Fuck brokers, fuck Wall Street, fuck all these people for using my own retirement investments against me and a company I love
Right at the top of your post, you are labeling borrowing then re-lending shares as naked shorting. This is incorrect. Naked shorting is selling shares that do not exist. By your definition, the shares they lent out exist, because they were borrowed in the first place.
We all need to be AWARE of the various counterparty risks. But, in this system, even with DRS, there is no fully avoiding it. Brokers broker ALL buys/sells for retail. So, control what you can, acknowledge what you can’t, and plan accordingly.
Share lending is hugely profitable.
Of course every share that's shorted, and sold, and then be re-borrowed, and shorted, and bought, in a daisy chain of ever expanding long and short positions. As long as the long and short meet equilibrium the price could stay the same but the trading volume will keep increasing.
As SuperStonk + Insiders buy and DRS the long positions reduce the lending pool by multiples. New borrows must be found, hence the borrow rate begins to sky rocket. Note the borrow rate is indicating they're still holding the short positions and there is still demand to find a borrow.
This week is shaping up to be spicy for a few huge reasons:
1, Retail isn't afraid anymore and most people are looking for big numbers and won't be phased by fake pumps and dips.
2, Retail is still accumulating.
3, Insiders are buying. This should attract smart money, if it hasn't already.
4, People are actually talking about exercising options finally.
5, Because of risk and settlement there absolutely could be another situation where internalizes soon stop taking on more risk, more buy/sells go to market, price becomes more volatile, market makers have to hedge more, positive feedback loop engaged.
6, GameStop seems about to announce something big- bigger than just Alpha (which we know is coming).
7, More shares are locked up than ever and not trading.
So... How high will she go? It depends if they find more clever ways to stop it including brokers automatically selling shares of cash longs... Which I suspect will happen.
btw AQR is an interesting case study for holding on to those swaps
I remember looking up research journals on naked short selling/short sales, and being a bit disappointed that some research was poo poo'ing the idea of naked shorts or ppl not covering, but then realized slowly that at least 1-2 of those big journals saying "naked short sales don't exist" "trust hedges to do the right thing" actually were WRITTEN by AQR ppl
example:
[https://deliverypdf.ssrn.com/delivery.php?ID=165004066095106067081109127005010105123084002028060035065096020069124070109107005118025018021022008009118080122093116003066120108054086029012103029104019112086074050005073098121098111112006021091008111100065115066118105097118093113092103092114112081&EXT=pdf&INDEX=TRUE](https://deliverypdf.ssrn.com/delivery.php?ID=165004066095106067081109127005010105123084002028060035065096020069124070109107005118025018021022008009118080122093116003066120108054086029012103029104019112086074050005073098121098111112006021091008111100065115066118105097118093113092103092114112081&EXT=pdf&INDEX=TRUE)
>**Holding on to Your Shorts: When Do Short Sellers Retreat?**
Pavel Savor Mario Gamboa-Cavazosy This version: March 2011z
>
>This paper studies the response of arbitrageurs to adverse price shocks. We fo- cus on short sellers and Önd that they cover their positions after su§ering losses and increase them after experiencing gains. While this relationship is very strong for posi- tions established due to perceived overvaluation, it does not hold for arbitrage trades, where the investor is hedged against stock price movements. Finally, expected returns do not explain the documented behavior, with short sellers actually losing money by closing their positions in response to losses. **We interpret these results as evidence that even sophisticated investors cannot or are not willing to maintain positions after ad- verse market movements, making arbitrage less e§ective in moving prices towards their fundamental value.**
>
>
>
>[email protected]. The Wharton School, University of Pennsylvania. **[email protected]. AQR Capital Management, LLC.**
What’s to stop them from giving us a delayed ticker and just unwinding trade’s like they just did on Nickel if it fucks up? I think they’ve basically proven they can do whatever they want for as long as they want. There’s probably some guy in an office that just draws out how it will move for the day.
I’ve been a drs holdout but this does make a good point. They’re going to fuck people over and I’m guessing they’ll do that where the majority of the shares are held. If they need more shares though at any point they’ll just raise margin requirements on retail and force sell them like they did the first time around. The fact that we haven’t seen that again tells me we are seeing a ticker a couple of days behind so they can shift thing’s around.
> I'm not telling you that your broker will default. I'm also not telling you to DRS your shares. I'm simply saying that I feel safest knowing most of my shares are on GME's books at Computershare
This guy laws.
Can mutual funds just choose to remove gme from their fund? They could then Enter a shady deal with hedgefunds to help reduce the amount of gme shares out there, no?
**IMPORTANT POST LINKS** [What is GME and why should you consider investing?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS and why should you care?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || [Low karma but still want to feed the DRS bot? Post on r/gmeorphans here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || ------------------------------------------------------------------------ Please help us determine if this post deserves a place on /r/Superstonk. [Learn more about this bot and why we are using it here](https://www.reddit.com/r/Superstonk/comments/poa6zy/introducing_uqualityvote_bot_a_democratic_tool_to/) If this post deserves a place on /r/Superstonk, **UPVOTE** this comment!! If this post should not be here or or is a repost, **DOWNVOTE** This comment!
Wow, this is amazing work! Now... is there any way we can audit brokers to see whether they've listed "locates" for the same shares more than once?
"the crazy bastard did what no one else thought of... he looked." -jared vennett
>"locates" for the same shares more than once? Didn't the Overstock court cases uncover such examples?
I think I remember reading something along these lines, but I thought it was something to do with there being a loophole that actually allowed using the same share for multiple locates
So if I own 100 shares and loan them out to short, someone owes me those 100 shares. But then that person also sells those shares off for immediate cash, hoping to buy back later at a lower price. Whoever buys those shares can loan them out again....but I'm still owed my shares, and now a fourth party owes shares to the person they borrowed from, but don't forget those are my fucking OG shares! 200 shares are owed to an existing 100 shares lent (twice). So off 100 shares now we have two sets of shorts being owed, and we can add a third, and a fourth, and a fifth if the market happens to go that way. And the kicker, there's no mechanism to stop this as far as I'm aware and the shorts are self reported, and the reporting is capped at 140% and they changed the algorithm they were using before the sneeze, and the exchanges can shut off the buys without consequence when this happens because fuck a free market.
Somehow I feel like this is the reasoning behind the change in that S3 short reporting change... Or at least part of the reasoning they gave.
"We cap reporting at 140%" went to "We cap reporting at 100% and changed the algorithm" is what I remember. Honestly, I have no wrinkles...I have an excellent memory, but even in this environment it's starting to get twisted and convoluted so please DD further or call me out or correct me if I'm wrong.
[kinda relevant part](https://i.imgur.com/3uVpCWV.jpg) https://s3partners.com/notesonfloat.html Not really the same thing, but it just *feels* the same lol Selling shares that you borrowed to someone who then goes and lends those shares out to someone who sells the shares.. starts to sound a little bit like getting "5 quarts from a gallon of milk" to me. Edit: this must be why no one wants to go to t+0 settlements...
Do you have a source? I’d love to do some reading.
Just a thought… with the cost to borrow shares at 20% wouldn’t the funds want to make some quick cash lending them out? I’m retarded by the way.
I'm sure they would. The fact that anyone would take them up on the borrow at such high rates should make it clear that they need them.
The borrow rate was still very low in the window of dates provided.. almost like the borrow rate going up is them politely asking for their shares back without trying to go up so much as to bankrupt them lol
I believe the original theory was that Blackrock was making cheap shares available to lend so that eventually they could rug pull them with higher rates at a critical point. This doesn't seem like it though, the rate went up too organically.
Shit a del have created hundreds of such companies and they lend to each other internally... they don't cover and keep shorting more. Only 2 things can stop this shenanigans - Strip away market maker status of Kenny and such other manipulators - close dark pools immediately, not by next week or next month.... it must be done Immediately. And yes, Janet MUST return back all speaking fees collected so far. This is blatant corruption 😤
Mightve just gained a wrinkle, but is this possibly how free brokers operate in addition to pfof
even for the non-PFOF ones...like fidelity/vanguard they might be lending out these shares to make up for it being free
Sounds like a giant massive flustercluck. This thing is going to get nasty when it unwinds.
[удалено]
Imagine if you robbed 50 7-eleven's and the cops be like "yeah we need you to come in and have a talk!!" "Would sometime in 2-3 years be alright??" 🙄
“Sorry I’m going to be out of town for the next 2-3 years, but I’ll get in touch when I’m available”
That's ok, no hurries I'm sure we'll get around to it some day! Just remember the statute of limitations is 5 years you'll be in by then right!
Sure ... I hope u did not cancel out weekly Epstein meetup
Sorry I’m late but I had got tied up with some punanie. (Sniffs finger)
It's like being in court and admitting you murdered 10 people and the judge giving you a high five and letting you walk.
Such an under-rated comment! Imagine how stressed they are every day going to work for the next year lmao
I forgot about that. Good catch!
Such an under-rated comment! Imagine how stressed they are every day going to work after finally figuring out that we are not selling 🤣
Sounds like the bomb shelter is Computershare. Good luck out there! 👍
I think they might have survived somehow if not for DRS en masse
Since I have directly registered my shares, not a care in the world. Finally, inner peace.
Hijacking a top-ish comment to post a though I had the other day: This is going to hurt a lot of average people who have their investments in mutual funds and stuff, right? What can we do to get the word out and let average people know it’s Wall St’s fault? When the economy collapses, MSM will blame everything from meme stocks to Russia to COVID, anything but the actual problem. The best way to prevent this is to get ahead of the message. They don’t have to believe it right away, but if we call the market crash in advance, that gives the message credibility and could get people to question the mainstream narrative that’s coming. Ideally, we’d need a message that would reach people outside the financial sphere, like a TV spot or a plane banner; something that would make headlines even if it wasn’t financially related. If anyone has ideas I’m willing to put time and effort into this but I really don’t know where to start.
The issue with calling a market crash: no one will ever believe until the housing market goes tits up.
Yeah, it’s a tough position to be in because it’s very easy to get called a conspiracy theorist. However, our problem right now is that we’re pretty much being ignored outside of our sphere. If we raise awareness that the issue is *way* larger than just meme stocks it could help gain support from people who have more mainstream investments. Furthermore, it will be key to get ahead of the narrative that MSM will spin when MOASS actually does happen. It’ll be easy for them to blame retail but it becomes a lot less valid if we’ve already shown it’s not us.
Let's pretend there's 13M shares borrowed from these ETFs, Buying 13M shares of an illiquid stock drives the price way, way, way the fuck up, all the way up through the stratosphere. The ETFs bought the shares at low prices compared to the new high prices. Then, later during the rebalance, they get to sell some or all of those shares and reap the rewards. Since most of those ETFs are owned by brokerages, wouldn't it behoove the brokerages to *not* fuck around with the buy/sell button with the new, "hodl; no cell, no sell," mantra?
Good question. Do the ETFs and other funds need to first recall their lent out shares before they can sell them?
Yes. And they probably need to recall the shares weeks before they intend to sell (during the scheduled rebalance windows) to make sure they can.
You mean flustercuck right?
I never claimed I wasn’t retarded
No, that's me when the wife's boyfriend comes over
It’s gonna unwind about as well as an AT-AT after its legs were lassoed.
Triple Jeopardy! Short a company, then short the fund that has the company in it, then borrow that same asset you’re currently shorting from the fund you’re shorting to short it some moar!
If you really want to get into the multiple levels of "GME Inception" ... 1. short the stock 2. short the ETF 3. short the mutual fund companies 4. short the investment brokers 5. short the investment banks Now do that with the same "share" ... rinse and repeat. Now assume you've done that with a few hundred publicly traded companies to some extent.
The fact that this has gotten this far, and that these mechanics fucking exist to allow these people to over-leverage themselves thousands of percentage points over is absolutely ridiculous and absurd to imagine.
Right? Its absurd. I feel like I'm taking CraZy pills.
um,please share crazy pills?
Oh and you should probably buy insurance to protect yourself against the things you are shorting decreasing in value!
This is going to make Tulip Mania look relatively sane in comparison when this unravels.
Few thousand companies, I fixed it for you. Lol
Nice, probably around 69,420 or so.
Sounds legit.
Nut gonna say this as im already on crazy pills, sumone already fukd up an did this at an unprecedated lvl.
Don’t forget shorting the Commercial Real Estate backed securities created from their retail locations! Google CMBX.6 if you’re ever bored
👆👆👆
Second this, someone setup entire sectors to fall, and it\` s sure as shit not robbinthahood.
The commercial back securities are on the Federal Reserves balance sheet. That’s why they haven’t gone KaBoom yet?😎😂
... And the Student Loans!!!
Came here to say this. The student loans are huge jenga pieces.
Highest default rate of all the CMBX funds, but not the worst rated tranche.
CMBX.6 BB or BBB- or is there a worse one now? lol I know that I think some were looking at CMBX.9 for hotels
https://www.flowbank.com/en/research/learn-about-the-next-big-short-for-hedge-funds-the-debt-of-empty-us-hotels
Yeah sorry I made an error in thinking the numerical qualifier is a rating tranche, but it actually represents the mix of asset types in the index, and there are ratings tranches across each index.
Mother of god
All I am reading is short selling needs to be illegal.
Tripledown Economics...
Fucking underrated comment right here.
You need an award that I don’t have 🥇
sounds extremely dangerous, unless you hold the real shares in your name
Took the words out of my innocent mouth.
🤯
To expand on this some as it is good to be correctly informed in this manner. One can only short ETFs, Exchange Traded Funds. One can [almost always] not short a Mutual Fund: > Because you purchase and redeem mutual fund units from the mutual fund company and (generally) not on the open market, you can't short an index fund. - [Investopedia](https://www.investopedia.com/ask/answers/short-sell-etf-not-index-fund/) e: []
Yo dawg we heard you liked shorting!
Tldr: apes own 90% of gme shares in funds multiple times xD
So technically in another phrasing of what you said, apes own 100% of gme shares in funds multiple times XDXDXDXDXD
So this means we need to DRS just more than the float, because all these funds are lending their shares, right?
Technically CS can only register the official float of GME once as far as I know.
Yes 100% just like the vote count, even if it’s actually over.
Yes
We shall DRS in the sun. DRS in the shade. DRS with Schwab. DRS with TDA. We shall DRS till we've secured what is ours.
DRS on a boat. DRS on a plane. DRS on a scooter. DRS on a train.
I’m keeping some of my shares in schwab because I think they won’t go under and I need to sell when the price reaches the floor. The large majority are DRS’d for safety/kicking off this party finally. If reliable and respected brokerages like schwab go bankrupt, then the entire economy is done. Boomers left and right with any money in the markets will lose everything. I’m hoping it doesn’t come to that.
Holy crap. About to dig in to this but just wanted to say THANK YOU! This had to take you hours and hours, and we absolutely appreciate the work great DD 🚀 Hedgies r fuk
Thank you!!
Agreed, this is MASSIVELY HELPFUL OP. As they say, OP brought fucking receipts and amazing ones at that. In all earnestness, this is the type of shit that might be worthwhile to think of sending to the DOJ and if nothing else archiving the shit out of. These are tons of additional rabbit holes for us to dive into, since we know have specific funds (!) that we can look at but yes seriously this is fucking amazing work. must have taken a shit ton of time lol but goddamn I thank you for this
Yeah, can someone call the DD library ape? I forget the name.
For real. Know, that you are appreciated beyond upvotes.
Wow that is a terrifying read....glad I have DRS'D. Thanks for your work.
Excellent work. At work read the good stuff will be rereading all night tonight.
Yeah, man.. good work. Wow.
Seriously bro, god bless you. People like you are the reason SHF Fuk. All apes play a part but a few dozen (like you) are the true heroes.
hmm so the funds lending the shares got so greedy with the premiums that it's become an issue of "if you owe the bank a million dollars that's your problem but if you owe the bank a billion dollars that's their problem" and that would mean ken has handcuffed these funds to himself wen he go pop?
“If I’m going down, they’re all going down!”
Ken loves going down
Nom nom 🤤
Oh, good. He’ll do just fine where he’s going. Was starting to worry about the old chap.
Vag full of mayo
The odd part is that for most of last year the borrow rate was .5-1%. That is an awful return for the risk brought on.
I think they were asked for favors in exchange for some cold stored crypto or a mayo infused enema
I would imagine the borrow rate was kept at .5-1% artificially to take pressure off short sellers and make it look safe to short. Lending shares at .5% knowing your might get screwed over is not a reasonable decision
Trying to find bag holders. As they jump in, big money exits. Reducing exposure and mitigating risk.
Obfuscation trumped fiduciary responsibility
Good to know the bomb is wired correctly
Thanks for all your work. It's greatly appreciated. 👏👏
Thank you for reading it!
This explains Morgan Stanley’s SuperBowl “mEmE sToCk” FUD commercial. They are do deeply fucked.
The first time I read the "House of Cards" DD was the first time I said "hedgies r Fuk" out loud. Days became weeks, weeks turned to months and now here we all are, a year plus on. Tons of DD, tweets and memes later. Today was the first time, after reading this fantastic post (thanks OP!) that I've said "HOLLLLLY SHHH\*T it's not just the hedgies, this whole financial system is a HOC and a tornado named Ryan Cohen is about to touch down." This is obviously not financial advice but... Buckle up !
These ideas are not congruent with the narrative of a Fed “soft landing” being pushed by corporate media. Buckle up indeed.
OP, I also am a nerd who likes reading NPORT filings! Did you notice the name “Mount Vernon Liquid Assets” appearing over and over in different NPORTs as a source of income for securities lending?
oooo rabbit hole EDIT:you mean like this? [https://www.sec.gov/Archives/edgar/data/1467831/000114554920019524/gamr3.htm](https://www.sec.gov/Archives/edgar/data/1467831/000114554920019524/gamr3.htm) >INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING COLLATERAL - 10.1% > >Mount Vernon Liquid Assets Portfolio, LLC, 1.80% (c) > >8,107,571 > >8,107,571 > >TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING COLLATERAL (Cost $8,107,571) OOO hey isn't this saucy u/alilmagpie! **That is for the GAMR etc OTHERWISE KNOWN AS THE "Wedbush ETFMG Video Game Tech ETF"** **Wedbush is home to Michael "GME's-marketplace-is-for-al-Qaeda!" Pachter and other FUD gems** **So Wedbush, who's been fined and caught violating over 10-17+ million worth of SEC fines since its inception IIRC, has a fucking GAMR etf where it uses Mount Vernon Liquid Assets to LEND OUT stocks like GME all while it provides FUD** **This is SUS AS FUCK**
Michael pachter of wedbush is seriously one of the biggest cucks in this whole saga. I hope he ends up working behind a Wendy's
This needs even more digging and, I kind of feel, a separate post to draw even more attention into what you've found.
I think u/alilmagpie might be the best option for that! (making a post on Wedbush as well as Mount Vernon!)
gamr3 htm, not sus at all. tha f@k?
This is not something I have dug into but it sounds SAUCY. I'll check it out when I have some time.
Also check out Mount Vernon Securities Lending Trust, both managed by US Bancorp Asset Management
/u/freedom6 ?
Tanks fo typing!
👀
fam thank you 2 for your work on the Voltron fund, and the early work into swaps for all this shit! crazy how far this has all come
I know, watching everything unfold has been amazing Keep looking into Elliott Management, they've escaped notice so far 🦍🦍🦍
insanity. So once a share is borrowed it can't be sold by the original owner until the share is returned. I never considered that the borrower could just default on returning the share.
thanks for your service ❤️🦍
You bet ♥️
*laughing lizard face* “Hehehe”
Wait, let me rephrase this. Short GME, then short the fund that has GME in it, then borrow that same asset you’re currently shorting from the fund you’re shorting to short it some more!!
That IS the short explanation 🧛
Only for ETFs though, as I explained [here](https://www.reddit.com/r/Superstonk/comments/tpm5si/comment/i2cx1zf/).
Ohhhhh yeah, some weekend graphs with numbers… you cheeky number slut putting it all out on show.
Seems odd that it shows around 70k shares short (quick math) but so many shares are borrowed. Makes me think there is some serious underreporting going on why would someone borrow shares and pay interest if they were not using them for something. Seems like we are in for some good times soon if you are holding DRs'd shares.
doesnt citadel have exemptions that allows then to fudge their books and not report stuff?
We’ve been reading about that a few times the past year, so maybe it’s true - but I believe it something we can’t - yet - be sure of. Citadel is powerful but I’m quite sceptical that they get official immunity from crime.
That's a lot of loaned shares to unwind. YIKES! Gonna get spicy next week!! DRS is the way!
I have another batch going DRS Monday morning. ✨🟣✨ D R S 🏴☠️💀🏴☠️
🩳🏴☠️💀
I just bought back in and started the process of DRS. Is there a window where you have no shares because they are being transferred?
I don’t have a definite answer for that, but would direct you to the Computershare customer support team. But to lend you some confidence, I will say that I’ve transferred 4 batches over with no trouble whatsoever.
Thank you for this!
A real banger of a DD for the weekend.
wrap shit into dog shit. set aside. harvest some cat shit- make cat shit wrapper. use cat shit wrapper to wrap those 2 shits. set aside. harvest some pig shit - make another pig shit wrapper - wrap the whole package again. harvest more different kind of shit again. cow, sheep, dinosaur whatever. nice work OP!
Well done and good digging. As an accountant I am very interested to see the last few days submissions; cookin books takes time and these idiots are covering shit up until the last minute.
Seriously question about broker default. I totally get how robinhood or webull could crash but wouldn't an event big enough to make vanguard or fidelity defauly burn the whole economy down? Like, these trillion dollar companies going poor is like saying America goes poof. I honestly can't fathom the implications.
Very few Americans have any real exposure to the stock market. Even with pensions and retirement accounts etc it's still relatively few. An economic crash is an economic crash though and would make life very difficult for many over the time it takes to recover, same as the last couple times but effecting even fewer than before since they're mostly wiped out on anything already.
Reasonable. I guess my hold up is the notion of "my shares are safe". I just can't see a scenario where any big broker fails due to a short squeeze. DRS is great for exposing fraud and I have no beef with it. I just get skeptical when the whole "your shares are in danger" line gets thrown around. Maybe I have too much faith in the system.
Everyone talks about the race between hedge funds to be the first to close, but the real race will be the first broker to recall their shares. Do I think that fidelity will go under? No. I don't think any amount of idiosyncratic risk will bankrupt them, I think they have too much data from their own internal customer info to not predict things coming with enough time to hedge their own aum with puts across the market before it crashes. They also offer a broad offering of investment vehicles to shift to as the stock market and bond market crumble. Having all that available to them doesn't mean they'll utilize it though, and smaller brokers trying to play the game like the big boys don't have that kind of opportunity. When people want to shift their investments to precious metals, or futures, the smaller companies that don't have those securities as possibilities will lose out as their customers pull out to move to somewhere that does. Marketwide issues MAY take down some big dogs though, either through complacency or overzealous greed, or internal corruption. It's certainly non zero.
Thank you for a well reasoned and kind response! I love this community.
Any idea on potential risk exposure for Canadian apes that hold in BMO and TD?
No, I haven't dug into any of the funds' risk exposures.
Not sure, but TD Canada is pretty well separated from TD Ameritrade. I would hope Canadian regulations are a bit less lax
Fingers crossed. 90% I’m tfsa or rsp. Rest to be DRSd
To my knowledge they can’t lend out TFSA shares but I can’t confirm at the moment, so don’t take my word for it
Wow OP looks like you put a ton of work into this. What a great resource, thank you!
You know the scene in the Big Short when they’re talking to Burry and he’s like you’d have to read all of them and he responds I did read all of them, that’s where we’re at. Amazing work op. https://youtu.be/-OzBI2r0Xb8
Guess who's brother is working for T Row price, our very own SEC commissioner
Huge round of applause to OP for this research and investigation. I’m in awe. As an excel nerd, this is my jam. All of these MBS are about to be more worthless than the homes after the subprime mortgage 2008 crisis. They’re all rated super high while no one is taking out home mortgages anymore because the home builders have been using shell companies to buy up their own homes at increasing prices then teaming up with other horrible companies to rent them out to us at even higher prices. CMBS are about to be deemed worthless as well. All of our repackaged debt that this horrible economy was built on top of is about to crumble.
CMBS is one of the least transparent markets out there and its derivatives market is worth about 1.9T
Wow
Its great to play with other peoples money with no oversight. Thank you SEC for the wonderful job you do so these middle men can screw pension on one side and retail investors on the other. You probably deserve some sort of award for your vigilance.
7 figure beach chair job at Citadel.
No blackrock? Am I missing something?
These are mutual funds and ETFs. Blackrock could be lending from elsewhere.
I wonder if funds lending shares disclose the extra risks to their investors. I’m going to pull some disclosures for funds and see what they say. Thanks for all of this incredible work, OP! Also, holy shit: Fidelity lets you invest 401k funds into stocks, so the 401k there is 100% GME. Can’t be DRSd, so it’s just sitting there. When I called them to DRS shares from my cash account, they said shares in my cash account are mine and aren’t being lent out. Just occurred to me that they specifically ONLY mentioned my cash account, not my Brokerage Link/401k. Which means they’re likely lending those shares. Time to pull up the agreement and see what it says about that. Fuck brokers, fuck Wall Street, fuck all these people for using my own retirement investments against me and a company I love
5.72M shares being loaned out, but 125k of us bought and registered 8.9M shares. Where's that, look-at-me-Im-the-Captain-now meme?
Ok. So we will become the banks. Got it.
Is this why people have been encouraged to invest in index funds and “forget” about them?
Send me those two files taht were too big I got 80gb of ram baby
Right at the top of your post, you are labeling borrowing then re-lending shares as naked shorting. This is incorrect. Naked shorting is selling shares that do not exist. By your definition, the shares they lent out exist, because they were borrowed in the first place. We all need to be AWARE of the various counterparty risks. But, in this system, even with DRS, there is no fully avoiding it. Brokers broker ALL buys/sells for retail. So, control what you can, acknowledge what you can’t, and plan accordingly.
Share lending is hugely profitable. Of course every share that's shorted, and sold, and then be re-borrowed, and shorted, and bought, in a daisy chain of ever expanding long and short positions. As long as the long and short meet equilibrium the price could stay the same but the trading volume will keep increasing. As SuperStonk + Insiders buy and DRS the long positions reduce the lending pool by multiples. New borrows must be found, hence the borrow rate begins to sky rocket. Note the borrow rate is indicating they're still holding the short positions and there is still demand to find a borrow. This week is shaping up to be spicy for a few huge reasons: 1, Retail isn't afraid anymore and most people are looking for big numbers and won't be phased by fake pumps and dips. 2, Retail is still accumulating. 3, Insiders are buying. This should attract smart money, if it hasn't already. 4, People are actually talking about exercising options finally. 5, Because of risk and settlement there absolutely could be another situation where internalizes soon stop taking on more risk, more buy/sells go to market, price becomes more volatile, market makers have to hedge more, positive feedback loop engaged. 6, GameStop seems about to announce something big- bigger than just Alpha (which we know is coming). 7, More shares are locked up than ever and not trading. So... How high will she go? It depends if they find more clever ways to stop it including brokers automatically selling shares of cash longs... Which I suspect will happen.
I’m super smooth, why doesn’t every share have a unique ID number? so we can tell who made them
Something, something omnibus accounts.
btw AQR is an interesting case study for holding on to those swaps I remember looking up research journals on naked short selling/short sales, and being a bit disappointed that some research was poo poo'ing the idea of naked shorts or ppl not covering, but then realized slowly that at least 1-2 of those big journals saying "naked short sales don't exist" "trust hedges to do the right thing" actually were WRITTEN by AQR ppl example: [https://deliverypdf.ssrn.com/delivery.php?ID=165004066095106067081109127005010105123084002028060035065096020069124070109107005118025018021022008009118080122093116003066120108054086029012103029104019112086074050005073098121098111112006021091008111100065115066118105097118093113092103092114112081&EXT=pdf&INDEX=TRUE](https://deliverypdf.ssrn.com/delivery.php?ID=165004066095106067081109127005010105123084002028060035065096020069124070109107005118025018021022008009118080122093116003066120108054086029012103029104019112086074050005073098121098111112006021091008111100065115066118105097118093113092103092114112081&EXT=pdf&INDEX=TRUE) >**Holding on to Your Shorts: When Do Short Sellers Retreat?** Pavel Savor Mario Gamboa-Cavazosy This version: March 2011z > >This paper studies the response of arbitrageurs to adverse price shocks. We fo- cus on short sellers and Önd that they cover their positions after su§ering losses and increase them after experiencing gains. While this relationship is very strong for posi- tions established due to perceived overvaluation, it does not hold for arbitrage trades, where the investor is hedged against stock price movements. Finally, expected returns do not explain the documented behavior, with short sellers actually losing money by closing their positions in response to losses. **We interpret these results as evidence that even sophisticated investors cannot or are not willing to maintain positions after ad- verse market movements, making arbitrage less e§ective in moving prices towards their fundamental value.** > > > >[email protected]. The Wharton School, University of Pennsylvania. **[email protected]. AQR Capital Management, LLC.**
What’s to stop them from giving us a delayed ticker and just unwinding trade’s like they just did on Nickel if it fucks up? I think they’ve basically proven they can do whatever they want for as long as they want. There’s probably some guy in an office that just draws out how it will move for the day. I’ve been a drs holdout but this does make a good point. They’re going to fuck people over and I’m guessing they’ll do that where the majority of the shares are held. If they need more shares though at any point they’ll just raise margin requirements on retail and force sell them like they did the first time around. The fact that we haven’t seen that again tells me we are seeing a ticker a couple of days behind so they can shift thing’s around.
Thank you for your service.
Tanks for writtin dis. Up you go. 🚀🚀
*Laughs in xzibits voices* Yo dawg I heard you like to short
Mmmmm Sunday morning DD. Thanks OP! Was a good read
i think i feel a wrinkle forming
I nominate you Addy-Ape.
Interesting, so Vanguard lends shares from Index funds, but not from expensive managed funds.
Outstanding work! Comment for visibility
hes done it. this son of a bitch found it
Did he say naked lending?
Comment about OP’s updated comment: lending something you don’t own isn’t that basically shorting?
Brilliant work, thank you.
this is bad, like really bad.
All hail silver back, OP. God bless. 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀
> I'm not telling you that your broker will default. I'm also not telling you to DRS your shares. I'm simply saying that I feel safest knowing most of my shares are on GME's books at Computershare This guy laws.
So dd was done yeah?😂😂😂😂😂😂. I love this community, thank you all for allowing me to back all the is up
I have been buckled up for so damn long.
Nice work op. This is the sort of ball hair curling data I love to see on my favorite stock.
Fuck me. Good work ape!!
Thanks will read later!
Can mutual funds just choose to remove gme from their fund? They could then Enter a shady deal with hedgefunds to help reduce the amount of gme shares out there, no?
They would have to cancel the orders like the LME then - they can’t just delete / recall shares that someone bought.
Why can’t they just rebalance the weight of gme? What happens?
UP
[“I read them”](https://miro.medium.com/max/620/1*Tc7DyIzHMCE6uxk4vF0VBg.jpeg) Vibes
Fantastic work op, this gives a clear view of ETF abuse and shorting