January 5th, Tuesday.
GME closed at 21.50 cents the day before, and the pre-market trading price has been pushed to 24 cents.
When Zhao Chen arrived at the office, Lin Shicheng had been sitting in front of Bloomberg Terminal for nearly an hour, with three pictures open side by side on the screen--
GME's time-sharing line, Short Selling ratio change chart and WallStreetBets Forum's real-time sentiment indicator.
Su Wantang Put Zisha Pot on the table and go to the tea room to boil water.
Shen Zhiyi pushed the door in at eight o'clock sharp, holding the newly updated exposure monitoring report in his hand.
"Total exposure after yesterday's close was 7.03 percent.
Today I plan to buy 5% to 8% of the daily average Trading Volume.
Trading Volume has been abnormally amplified before the market opens. There is a high probability that there will be a wave of Follow-up Orders after the market opens. Our buying rhythm needs to be dynamically adjusted based on the intraday Trading Volume."
Shen Zhiyi put the report in front of Zhao Chen,
"The legal department has confirmed that after the 13G declaration is submitted, as long as the position does not exceed 9.99%, no additional disclosure is required for subsequent purchases.
But every transaction must leave traces to prepare for possible SEC inquiries."
Zhao Chen flipped through the report and his eyes fell on the column of Short Selling proportions.
At the closing yesterday, the proportion of Short Selling dropped from 95% to 87%, and Short Sellers closed about 5 million shares.
However, GME's total Short Selling positions still exceed 60 million shares, accounting for more than 80% of Circulating Supply.
Most of the Short Sellers didn't run away, they were still carrying it.
"How much has Short Sellers flattened? Just take a look at yesterday's tick-by-tick data."
Zhao Chen handed the report to Lin Shicheng,
"I want to know which institutions closed their positions and which ones were left behind."
Lin Shicheng switches Bloomberg Terminal to the position details page of Short Sellers.
"The main force in closing positions yesterday was a few small Hedge Fund. Their positions were light and they ran fast.
Melvin Capital closed about 2 million shares, but has a remaining position of 30 million shares.
There were no significant changes in the positions of Point72 and Citadel.
Overall, Short Sellers is reducing its position, but it has not collapsed. They are waiting for a correction."
At nine thirty, NASDAQ opened.
GME was quoted at 24.80 cents, 15% higher than the previous day's closing price.
Trading Volume exceeded 8 million shares in the first minute after the market opened, and retail investors Follow-up Orders poured in like a tide.
The number of real-time online users of WallStreetBets Forum jumped from more than 20,000 before the opening to more than 50,000. GME Discussion Board's posting speed was so fast that it was almost impossible to see the title clearly.
Lin Shicheng starts to execute the purchase according to the preset rhythm.
The Common Stock buy was split into small orders of no more than 30,000 shares each, scattered in three different Offshore SPV channels.
At ten o'clock in the morning, GME's stock price hit 26 yuan, and Lin Shicheng completed one-third of the planned buying volume for the day.
At 10:30, the stock price exceeded 27 yuan, and Trading Volume exceeded 60 million shares.
Lin Shicheng slowed down his buying pace - the stock price rose faster than he expected, and chasing higher would push up costs.
"How many of today's Buying Pressure are ours?" Zhao Chen asked.
"About three percent. Most of Buying Pressure comes from retail investors and Follow-up Orders."
Lin Shicheng enlarges the transaction data one by one,
"The sentiment indicator on WallStreetBets Forum has reached the extremely greedy range, and retail investors are going crazy Add Position.
Someone launched a poll on the forum - 'What is your operation today?' As a result, more than 70% of the people chose 'buy' or 'hold'.
Less than 10 percent chose 'sell'."
In CNBC's live broadcast at 11 a. m., the host placed GME's stock price chart and Era Vanguard's 13G filing documents side by side on the screen.
The K-line on the left side of the screen has been stretched from 9 yuan to 26 yuan now. On the declaration document on the right side of the screen, the name Era Vanguard is circled in a red box.
The host used a slightly exaggerated tone--
"GameStop's stock price surged for the second day in a row after Era Vanguard disclosed its position.
The market is interpreting the position opening behavior of Era Vanguard as a strong bullish signal.
This fund has accurately picked the bottom on Tesla and Nvidia, and now they have chosen GameStop.
The question is - what did they see that others didn't?"
Commentator Bloomberg interviewed a former Market Maker on the midday show.
The former Market Maker said something in front of the camera--
"GME's Short Selling ratio is still more than 80% of Circulating Supply.
The average cost of Short Sellers is approximately between ten and twelve US Dollar.
The stock price rose to 26 yuan, and Short Sellers's floating loss exceeded 100%.
If the stock price continues to rise above 30 yuan, most of the insurance call lines of Short Sellers will be broken down.
At that point, investment banks will have to Forced Liquidation. And Forced Liquidation is not a sell - it is a buy.
Short Sellers must buy back the stock to return the borrowed chips.
When all Short Sellers are Forced Liquidation at the same time, the Buying Pressure on the market will exceed the selling order by several orders of magnitude."
On WallStreetBets Forum, DFV posted a new post at 1 p. m.
He sent a screenshot - the market value of his GME position rose from 2.7 million US Dollar after Q3 Report to about 4.2 million US Dollar.
The accompanying text only has one sentence - "I'm still here. And so are you." Within ten minutes after the post was posted, the number of replies exceeded 3,000.
The most popular reply reads-"DFV is still there, Era Vanguard is still there. We are still there."
By 2 p. m., GME's stock price hit 28.50 cents.
Lin Shicheng completed two-thirds of the planned buying volume for the day.
He sent a message to Zhao Chen in the internal communication--
"Retail investors Buying Pressure were too strong during the session, and our purchases were squeezed in the middle.
If you continue to execute at the current pace, you may not be able to buy enough in the late trading. Do you want to adjust the pace?"
Zhao Chen replied with one word--
"Buy. But don't chase the price higher. If the stock price falls below 27 yuan in the late trading, invest all the rest."
At 2:45 p. m., GME's stock price dropped from 28.5 to 27.2.
Lin Shicheng completed the last purchase of the day at around 27 yuan.
At the last quarter of an hour before closing, the stock price pulled back to 28 yuan.
The closing bell rang, and GME was trading at 27.80 cents, an increase of more than 29% throughout the day.
Trading Volume exceeded 40 million shares, setting a new historical record again.
Short Selling proportion dropped from 87% to 79%--
Short Sellers was partly flat during the session, but there are still more than 55 million shares of Short Selling holding positions.
Zhao Chen called Lin Shicheng and Shen Zhiyi to the conference table after the market closed.
The closing data on Bloomberg Terminal is still on - GME is 27.8 yuan, Trading Volume is 400 million shares, and Short Selling ratio is 79%.
"How much did you buy today?"
"Common Stock has about 1.2 million shares, with an average price of 26.3 yuan.
Positions increased from 7.03% to 7.8%.
There is no operation on the Options side today - Implied Volatility is too high, and the cost of the newly opened position Premium is not cost-effective.
The current Options position remains unchanged, waiting for the opportunity to close the position after the stock price rises further."
Lin Shicheng pushed the transaction summary to Zhao Chen.
"Where is Short Sellers?"
"Short Selling ratio is seventy-nine percent after closing.
Melvin Capital closed about 3 million shares today, but has a remaining position of more than 20 million shares.
Point72 has not moved.
There was even a small increase in Citadel's position - they were betting the stock price would pull back."
Lin Shicheng Turn Short Sellers details to the next page,
"On the whole, Short Sellers has not collapsed, but their insurance pressure is rising rapidly.
GME's Short Selling interest rate has increased again today, and the annualized rate has exceeded 50%.
Short Sellers will burn tens of millions US Dollar just to pay interest every day."
Shen Zhiyi Open the exposure monitoring report.
"Total exposure after today's close is 7.8 percent.
It is still 2.19 percentage points away from the red line of 9.99%, corresponding to about 1.53 million shares.
At today's buying pace, it will take about three to four trading days to hit the upper limit.
Exposure monitoring is running normally today and no warnings have been triggered."
Zhao Chen leaned back on the chair, picked up the tea cup and took a sip.
GME's stock price fluctuated around 28 yuan after the market opened, and WallStreetBets Forum was still partying.
DFV's post was pushed to the top of the homepage, and Era Vanguard's 13G declaration document and Citron's Short Selling report were taken side by side and screenshots were put together by retail investors as a "battlefield situation map."
Short Selling institutions are holding a meeting overnight, retail investors are celebrating, and the media is watching.
Zhao Chen put down the tea cup and looked at Lin Shicheng and Shen Zhiyi.
"Today is only the second day. Short Sellers is still carrying, retail investors are still buying, and our position has increased from 7.03 to 7.8.
I will continue to buy tomorrow and the rhythm will remain the same.
Push the exposure to more than 9.5, and then save the last few tenths for use when Short Sellers counterattacks."
He stood up and walked to the window.
GME's stock price stabilized around 28 yuan after the market opened, and Trading Volume was still amplifying.
From 9.2 yuan to 27.8 yuan, the price increased by more than 200% in two trading days.
And on WallStreetBets Forum, a new popular post is being pushed up repeatedly--
"Era Vanguard has not closed its position. They are just like us, waiting for Short Sellers to trample themselves to death."