"Era Vanguard's open position exceeded 5%, submitted a 13G declaration, and bought heavily.
This incident itself will become a market signal - it is not Era Vanguard who is buying,
It is Era Vanguard that is telling the entire market that GME's Short Selling structure has structural flaws, which will explode at some point in time.
Retail investors will regroup after seeing the declaration of Era Vanguard.
When Short Sellers sees the declaration of Era Vanguard, it will start to calculate its own liquidation line.
DFV's live broadcast and the unity of retail investors are resistance at the psychological level, while Era Vanguard's 13G declaration is a declaration of war at the financial level.
Psychological resistance can be defeated by Citron's report, but financial war cannot.
Because Era Vanguard spent the money for real."
Lin Shicheng closed the notebook and was silent for a few seconds. Then he asked a very practical question.
"If we want to buy heavily, how should we arrange the pace and scale of the buying?
Tomorrow is December 23rd, and there are nine trading days between January 4th.
According to GME's daily average Trading Volume, if we buy more than 10% of the daily average Trading Volume every day, the stock price will rise rapidly driven by our Buying Pressure.
If it rises too fast, the insurance pressure on Short Sellers will explode in advance, and our cost of opening a position will be pushed up by itself."
"Buy 5% to 8% of the daily average Trading Volume every day.
It is executed in two periods, morning and afternoon, and completed before 2:30 pm.
Common Stock and Options advance simultaneously, Common Stock is the main one and Options is the auxiliary one.
The size of the buy--I'm looking to push the total exposure from 3.7 percent now to within 8 to 9.9 percent within nine trading days."
"Eight to nine point nine percent."
Lin Shicheng repeated the number and wrote down the calculation process in his notebook.
"Based on the total share capital of GME of approximately 69.74 million shares, 10% corresponds to approximately 6.97 million shares.
We currently have 1.95 million shares of Common Stock, plus a conservative discount of about 630,000 shares of Options, with a total exposure of about 3.7%.
Add Position requires approximately 4.3 million shares of Common Stock and the equivalent amount of Options.
Based on the current stock price of eight yuan, Common Stock needs to invest approximately 35 million US Dollar.
Including Options and Premium, the total investment is about 50 million to 60 million US Dollar."
"Yes. In terms of funds, the limit of Era Vanguard special opportunity account is enough to cover.
You start executing tomorrow, and your daily buying pace follows the plan, and don't speed up or slow down just because of stock price fluctuations."
Lin Shicheng put away his notebook, stood up and prepared to leave.
When he reached the door, he paused and turned around.
"Zhao Zong, you just said that Era Vanguard's 13G declaration is a declaration of war on the financial level.
But what if the SEC inquires?
If the SEC asked us why we bought heavily after Citron released the Short Selling report, how would we answer?"
"Answer truthfully. Era Vanguard makes independent judgments based on public data.
It is believed that GME's Short Selling structure has structural flaws and the market price fails to reflect its true value.
Buying is a normal investment behavior and does not involve any inside information or market manipulation."
Zhao Chen picked up the tea cup and took a sip.
"The SEC couldn't find anything wrong.
Each of our transactions has complete trace records, the source of funds is legal and compliant, and the position logic is based on public data.
Whatever the SEC asks, we answer."
Lin Shicheng opened the door and went out.
Su Wantang stood up from the armrest of the sofa and walked to Zhao Chen.
Her expression was different from before - she spoke very steadily when Lin Shicheng was here, but now her brows were slightly wrinkled.
"You just said you were going to buy heavily, with more than 5% open positions, and submit a 13G declaration.
Once this is done, Era Vanguard will officially stand on the opposite side of Wall Street Short Sellers.
Citron, Muddy Waters, Melvin Capital--these institutions will treat you as their opponent.
You said before that a dead opponent is not worth your attention.
But what about the living opponents?"
Zhao Chen put the tea cup on the table and looked at Su Wantang.
"Wantang, along the way to this day, I have stepped on more Short Sellers bones than anyone else.
Ever since I, Short Selling Henglong, have never been afraid of any opponent.
Regardless of whether the person standing opposite me is my father or the vultures of Wall Street.
Once Short Selling Tesla Short Sellers, from three hundred US Dollar to one hundred and seventy-eight US Dollar, and finally lost several billion US Dollar in the stampede.
Muddy Waters and Citron, Short Position on Nvidia and Tesla, were all liquidated in the Short Squeeze market from 2019 to 2020.
None of these opponents left the field alive.
In the past, I was passively defensive. This time, I will take the initiative to provoke a war and let Short Sellerss of Wall Street know that Era Vanguard is not a soft persimmon.
GME is the battlefield and graveyard I chose for them."
He stood up and walked to the window.
GME's stock price rebounded from 7.95 cents to 8.10 cents in after-hours trading, and Trading Volume exceeded 4 million shares an hour after the market opened.
On WallStreetBets Forum, DFV's posts were pushed to the homepage, but the number of replies was declining.
The mood of retail investors was obviously exhausted after Citron Research Report, but DFV's live replays were still being forwarded.
"On January 4th, the 13G application was submitted.
That day is Monday.
From today to January 4th, there are still nine trading days.
In these nine trading days, Era Vanguard and Buying Pressure will push GME's stock price from eight yuan to more than ten yuan.
When the 13G application is submitted on January 4, the market will see that Era Vanguard suddenly joined the siege.
At that time, retail investors will regroup, and Short Sellers will start calculating its liquidation line."
He turned around and looked at Su Wantang.
"You have to ask me if I'm afraid. I'm afraid.
But what I'm afraid of is not Citron, Muddy Waters, or Melvin Capital.
What I'm afraid of is that retail investors on DFV and WSB completely collapsed after the Citron report and handed over their chips at eight yuan.
If they hand over their chips at eight yuan, Short Sellers will drop the stock price to five yuan and then calmly close the position.
Era Vanguard's 3.7% exposure would be an ugly loss.
But if Era Vanguard buys heavily tomorrow and lifts the stock price from eight yuan, retail investors will see that someone is standing with them.
They won't run. If they don't run, the Short Sellers stampede will break out after January 4th."
Su Wantang looked at him and said nothing more.
She picked up Zisha Pot, poured out the cold tea, and refilled a pot of hot tea.
The winter night outside the window Manhattan rises from the Hudson River, and the neon lights in the Times Square direction turn half of the sky into a blur of warm color.
GME's stock price stabilized around eight yuan after the market opened, and Trading Volume was slowly enlarging.
Citron's report is still cited repeatedly by the media, but DFV's live broadcast replay was liked again on WallStreetBets Forum.
Era Vanguard's exposure monitoring table is placed on the table, with a horizontal line drawn next to the 3.7% exposure.
Below the horizontal line is a line of words Zhao Chen written in pencil - "On January 4th, the decisive battle begins."