Wednesday, January 6th.
GME closed at 27.8 cents the day before, and pre-market trading had already pushed the price to over 30 yuan.
When Zhao Chen arrived at the office, in front of Lin Shicheng, in addition to the regular data of GME, the real-time monitoring panel of WallStreetBets Forum was also turned on on Bloomberg Terminal.
Shen Zhiyi has been sitting at the Legal Department's workstation for a while, with the updated version of the exposure monitoring report spread out in front of him and a cup of cold coffee beside him.
"Trading Volume has exceeded 10 million shares before the market opens."
Lin Shicheng transfers data to Zhao Chen,
"WallStreetBets Forum has more than 80,000 online users, twice as many as yesterday.
GME Discussion Board's posting speed has refreshed to hundreds of posts per minute, and the moderator had to turn on the current limiting mode."
Zhao Chen put Zisha Pot on the table, and Su Wantang went to the tea room to boil water.
He opened the exposure monitoring report sent by Shen Zhiyi--
After yesterday's close, the total exposure was 7.8%, still 2.19 percentage points away from the red line of 9.99%.
"Continue to buy today.
The rhythm remains unchanged, the daily average is 5% to 8% of Trading Volume.
If Trading Volume continues to increase before the market opens, our buying volume can increase appropriately after the market opens, but it should not exceed 10% of the daily average Trading Volume."
Zhao Chen Put the report on the table,
"Also, pay attention to the news of DFV today.
After his post yesterday, the mood on WSB has definitely accelerated."
At nine thirty, NASDAQ opened.
GME gapped higher and opened to 31.50 cents, 13% higher than the previous day's closing price.
Trading Volume exceeded 10 million shares in the first minute after the market opened.
The K line on Time-sharing Chart is like a fully drawn bowstring.
Within fifteen minutes after the opening, it continuously exceeded 32 yuan, 33 yuan, and 34 yuan, with almost no correction.
Buying Pressure from retail investors poured in like a tide, and every integer level was eaten up within a few seconds.
Lin Shicheng started to execute the purchase as planned.
Common Stock is split into small orders of no more than 30,000 shares each, scattered in three Offshore SPV channels.
At ten o'clock in the morning, GME's stock price hit 35 yuan. Lin Shicheng completed one-third of the planned buying volume for the day.
At 10:30, the stock price exceeded 36 yuan, and Trading Volume exceeded 80 million shares.
The number of people online at WallStreetBets Forum jumped to over 100,000.
During CNBC's 11 a. m. live broadcast, the host cut the camera to a big screen in the studio.
On the screen is a daily chart of GME, which has stretched from four US Dollar at the beginning of the year to thirty-six now.
The host used an almost shouting tone--
"GameStop's stock price rose from 9.2 yuan to 36 yuan in three trading days, an increase of nearly 300%.
This is extremely rare in the history of US Stocks. What is even more rare is that the main force driving this round of rise is not institutions, but retail investors.
Retail investors on WallStreetBets Forum are betting against Short Sellers with real gold Silver and Wall Street."
The commentator of Bloomberg invited an analyst who has been tracking Retail Investor Behavior for a long time on the midday show.
The analyst said something in front of the camera--
"The number of GME discussion threads on WallStreetBets Forum has increased tenfold in the past three days.
One of the posts was repeatedly pushed to the top of the home page.
The title is 'Era Vanguard bought 4.9 million shares at ninety-two. What was your cost?'
There are more than 20,000 replies under the post, and most retail investors are posting screenshots of their positions, with costs ranging from 5 yuan to 20 yuan.
This is not an investment decision, this is a collective action.
Retail investors are using their positions to express their dissatisfaction with Wall Street Short Sellers, and the source of this dissatisfaction is the Short Selling report released by Citron two weeks ago."
On WallStreetBets Forum, DFV posted a new post at 1 p. m.
This time he did not send a screenshot of his position, only a picture--
A hand-drawn GME stock price chart, with the horizontal axis from January 2020 to January 2021, and the vertical axis from three US Dollar to forty US Dollar.
The curve climbed slowly from around 3 US Dollar to sharply rising in early January, and drew an almost vertical upward line at the end.
There is a line of handwritten words in the lower right corner of the picture - "They said it was worth five dollars." Within ten minutes of the post being posted, the number of replies exceeded 5,000.
The most liked reply only has three words - "Five dollars."
The second most liked reply read--
"When Citron said GME was worth five yuan, Era Vanguard bought 4.9 million shares. The current stock price is thirty-six yuan. Who is right?"
Then, a new popular post appeared.
Someone put four pictures of Era Vanguard's 13G declaration document, Citron's Short Selling report, DFV's position screenshots and Ryan Cohen's tweet screenshots side by side, with a title -
"Four-Nation Alliance." The text of the post reads - "Era Vanguard opened a position at 9.2 yuan, DFV opened a position at 5.00 yuan, and Ryan Cohen opened a position at 8.4 yuan.
Citron said GME is worth five yuan. The current stock price is thirty-six yuan.
Do you know the most ironic thing? The cost of establishing a position on Era Vanguard is higher than the target price of Citron.
They saw the value of GME earlier than Citron did, and they bought it with their own money."
By 2 p. m., GME's stock price hit 38.50 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 we continue to execute at the current pace, we may not be able to buy enough volume in the late trading."
Zhao Chen's reply is the same as yesterday--
"Buy. But don't chase the price higher. If the stock price falls below 37 yuan in the late trading, invest all the rest."
At 2:45 p. m., GME's stock price dropped from 38.5 yuan to 37.2 yuan.
Lin Shicheng completed the last purchase of the day near 37 yuan.
At the last quarter of an hour before closing, the stock price pulled back to 39 yuan.
The closing bell rang, and GME was quoted at 38.60 cents, an increase of more than 38% throughout the day.
Trading Volume exceeded 500 million shares, setting a new historical record again.
Short Selling proportion dropped from 79% to 70%--
Short Sellers was partly flat during the session, but there were still over 50 million shares of Short Selling holding positions.
After the market closed, Lin Shicheng pushed the transaction summary to Zhao Chen.
"Today Common Stock bought about 1.5 million shares, with an average price of 35.8 yuan.
Positions increased from 7.8% to 8.9%.
There is still 1.09 percentage points away from the upper limit of 9.99%, corresponding to about 760,000 shares.
According to today's buying pace, it will take about two to three trading days to reach the upper limit.
There is no operation on the Options side today - Implied Volatility exceeded 200%. The cost of the newly opened position Premium is too high and not cost-effective."
"Where is Short Sellers?"
"Short Selling ratio is 70% after closing.
Melvin Capital closed about 5 million shares today and has a remaining position of about 15 million shares.
Point72 closed about three million shares.
Citadel's positions are starting to fall -- and they're running."
Lin Shicheng Turn Short Sellers details to the next page,
"The total Short Sellers position closing volume today is approximately 12 million shares.
But the speed at which they closed their positions could not keep up with the rise in stock prices.
The average cost of Short Sellers is between ten and twelve yuan, the stock price has risen to thirty-eight yuan, and the floating loss exceeds 200%.
Most Short Sellers's recovery lines are between 30 and 35 yuan, and have been broken through.
But investment banks don't have Forced Liquidation-because forced liquidation will trigger a chain stampede, and the entire Market Maker system will be unbearable.
So Short Sellers is still holding on and relying on margin calls to maintain its position."
Shen Zhiyi Open the exposure monitoring report.
"Total exposure after today's close was 8.9 percent.
It is still 1.09 percentage points away from the red line of 9.99 percent.
Exposure monitoring was running normally today and no warnings were triggered.
If we continue to buy at today's pace tomorrow, it is expected to hit 9.5 the day after tomorrow and 9.9 the day after tomorrow."
GME's stock price fluctuated around 39 yuan after the market opened, and WallStreetBets Forum was still partying.
DFV's post was pushed to the top of the home page, 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 third day. Short Sellers is still carrying, retail investors are still buying, and our position has increased from 7.8 to 8.9.
Continue buying tomorrow and push the exposure to 9.5. Then stop.
Keep the remaining few tenths - use them when Short Sellers counterattacks."
He stood up and walked to the window.
GME's stock price stabilized around 39 yuan after the market opened, and Trading Volume was still amplifying.
From 9.2 yuan to 38 yuan, an increase of more than 320%.