January 13th, Wednesday.
WallStreetBets Forum's server crashed two hours before the opening --
The number of people online exceeded 400,000. The forum administrator completely closed the new user registration channel and only retained the access rights of existing users.
After the restoration, the top of the homepage was firmly occupied by a post with the title - "Thank you for the new Short Sellers."
The text of the post reads--
"Elliott is in sixty-eight yuan Short Selling two million shares.
Another one and a half million shares at seventy yuan Short Selling.
They think that the decrease in the Short Selling ratio is an opportunity to enter Short Selling.
They forgot one thing - the decrease in GME's Short Selling ratio is not because Short Sellers is reducing its positions in an orderly manner, but because Short Sellers is stamping out.
Entering Short Selling while stampeding is equivalent to pouring gasoline into an already burning building.
Thank you Elliott. Thank you to the female fund manager who refused to be named.
Your Short Position is our fuel."
Immediately afterwards, DFV published a new post before the market opened.
This time he did not send a screenshot of his position, only a paragraph--
"Someone asked me why I didn't sell it for 72 yuan.
My answer is simple - GME's Short Selling ratio is still 62%.
Short Sellers There are still 42 million shares outstanding.
Melvin ran away, but Point72 is still there. Citadel is still there.
Two new Short Sellers came today, and opened positions at blocks 68 and 70.
They thought the Short Sellers stampede was over, but actually the stampede had just begun.
When all Short Sellers want to run away, who can run away?
When the new Short Sellers wants to come in and buy Short Selling at the bottom, who will give them chips? I won't give them.
Era Vanguard won't give it. Ryan Cohen won't give it. Retail investors on WSB won't give it.
The new Short Sellers is at sixty-eight yuan Short Selling -- they need to buy back two million shares to close the position.
No one is selling in the market. They can only wait for the stock price to fall.
But why did the stock price fall? Because Short Sellers was closing the position? To close the position was to buy.
Because retail investors are selling? Retail investors are buying.
Because Era Vanguard is selling? Era Vanguard is not selling one share. So - why did the stock price fall?"
In less than ten minutes after the post was posted, the number of replies exceeded 6,000.
The most popular reply has only four words - "Why did it fall?"
At nine-thirty, NASDAQ opens.
GME jumped up and opened to 75 yuan and 80 cents, and broke through 80 yuan 15 minutes after the opening.
The K line on Time-sharing Chart is like a fully stretched bowstring. Every time you step back, it will be caught by Buying Pressure within a few seconds.
Lin Shicheng stared at the transaction data and sent a message to Zhao Chen in the internal communication--
"Gamma Squeeze accelerated around the eighty block. The hedging Buying Pressure of Market Maker concentrated near the eighty-two block, and the Buying Pressure of retail investors followed behind.
There is selling pressure on Short Sellers near 83 yuan - the volume is not large, it should be the position of the new Short Sellers Elliott. They are trying to suppress the stock price."
Zhao Chen reply--
"Don't worry about him. The new Short Sellers and Short Position will become the fuel for the next round of stampeding.
Cut your buying volume in half today - only two hundred thousand shares. Keep the rest."
By 10:30 in the morning, GME's stock price hit 85 yuan.
Elliott's Short Position - two million shares, with an average cost of 68 yuan - the floating loss has exceeded 25%.
If the stock price rises to 88 yuan, his insurance call line will be broken down.
Lin Shicheng sent another message in the internal communication--
"Elliott placed a large number of sell orders near 85 yuan, trying to push the stock price back.
But retail investors Buying Pressure took the position resolutely below 84 yuan.
Market Maker's hedge Buying Pressure continues to push above eighty-five blocks.
Elliott's sell order was caught in the middle - he was betting real money Silver against Gamma Squeeze."
In CNBC's live program at 11 a. m., the host placed GME's stock price chart and Elliott's Short Sellers position report side by side on the screen.
The report comes from a third-party research institution that tracks the position of Hedge Fund, showing that Elliott's fund has established about two million shares of Short Position near block 68.
The host used an analytical tone--
"GameStop's stock price exceeded 85 yuan this morning.
Among the forces driving this round of rise, in addition to the Gamma hedging of Market Maker and the Buying Pressure of retail investors, there is also a new variable - the newly entered Short Sellers.
The fund Elliott is priced at RMB 68 Short Selling GME. The current stock price is RMB 85, with a floating loss of more than 25%.
If the stock price continues to rise to 88 yuan, the insurance call line of Elliott will be broken down.
At that time, he needs to buy back two million shares in the market to close his position.
And the selling in the market - from retail investors, from Era Vanguard, from Ryan Cohen - is almost non-existent.
Elliott's Short Position is becoming the fuel for the next round of pedaling."
The commentator of Bloomberg invited a senior analyst who has followed the historical performance of Elliott on the midday show.
The analyst said something in front of the camera--
"Elliott's style is contrarian Short Selling.
He passed Tesla in 2018 Short Selling, passed Beyond Meat in 2019 Short Selling, and passed Nikola in 2020 Short Selling.
Among them, Tesla, when his position rose to 900 yuan from 200 yuan, US Dollar Short Selling, Tesla, he was forced to close the position, resulting in a loss of more than 300%.
That time with Beyond Meat, he was trading at 80 yuan Short Selling. When the stock price rose to 200 yuan, he was forced to close his position again.
That time with Nikola, he finally made the right bet - the founder of Nikola was sued for fraud by the SEC, and the stock price fell from 80 yuan to 20 yuan.
Elliott's style is - make a lot of money if you bet correctly, and lose more if you bet wrong.
On GME, he is at $68 Short Selling. His recovery line is between $85 and $90.
What he was betting on was that the sentiment of retail investors would collapse. But the sentiment of retail investors did not collapse--
DFV did not sell, Era Vanguard did not sell, Ryan Cohen did not sell.
Elliott's Short Position is becoming the biggest bet of his career."
White-Haired Old Man is sitting alone in a leather chair by the fireplace in the Explorers Club.
On Bloomberg Terminal in front of us, GME's stock price is fluctuating around 86 yuan.
Elliott didn't come today. Neither did the middle-aged woman.
He was the only one left in the room.
He picked up the Whisky cup, took a sip, and his eyes fell on the upward K-line on the screen.
He picked up the phone and dialed a number.
The phone rang three times and was connected.
"Elliott. The stock price is eighty-six yuan. Your insurance call line is eighty-eight yuan. There are two yuan left. What are you going to do?"
There was silence on the other end of the phone for a long time.
Then Elliott's voice came from the receiver, much hoarse than when he talked by the fireplace last night.
"I placed a sell order at 85 yuan, trying to hold down the stock price. But Buying Pressure was too strong.
My sell order was taken. I'm now chasing margin.
The investment bank asked me to top it up before closing. I'm scraping together the money."
"Did you get it together?"
"Not even close. I'm selling other positions. But I'm running out of time."
White-Haired Old Man Put the Whisky cup on the coffee table.
"Elliott, I have lived in this market for forty years. I have seen many people Short Selling in the Short Squeeze market.
Most of them have made the same mistake - they think that the stock price will stop when it reaches a certain position. But there is no 'certain position' in the Short Squeeze market.
When Short Sellers has to buy back the stock to close his position, the stock price will rise to a level that Short Sellers himself cannot believe.
When you were at 68 Short Selling, the Short Selling ratio was 62 percent. You thought the Short Sellers stampede was over.
But you never thought about one thing - when the new Short Sellers enters the market, the Short Selling ratio will increase again.
The total position of the Short Sellers camp will increase again. However, the stocks that can be borrowed in the market are limited.
You borrowed two million shares of Short Selling.
Where did these two million shares come from? They were borrowed from investment banks.
Where did the investment bank borrow it from? From the accounts of retail investors.
Retail investors lent their stocks to you Short Selling and received interest. But they can take the stocks back at any time.
When they decide to call it back, you have to buy back two million shares on the market.
And there are no selling orders in the market. At that time, your two million shares of Short Position will be your own coffin."
There was silence on the other end of the phone for a long time. Then Elliott said something in a very soft voice.
"I know. But it's too late."
He hung up the phone.
White-Haired Old Man put the phone on the coffee table and picked up the Whisky cup again.
The winter sky in Manhattan is gloomy outside the window, and the wind from the Hudson River pushes the clouds low.
GME's stock price fluctuates around 87 yuan. It is still one yuan away from the insurance call line of Elliott.
On WallStreetBets Forum, a new popular post is being pushed repeatedly--
"Elliott placed a sell order at 85 yuan to suppress the stock price. His sell order was eaten.
He is raising a deposit. His insurance call line is 88 yuan. The stock price is now 87 yuan.
There's still one dollar left. Do you know what this means?
This means that as long as one more person buys 10,000 shares, Elliott will be covered.
He needs to buy back two million shares in the market. But there are no selling orders in the market. He can't buy them.
He will become the second Short Sellers to be trampled to death in the GME Short Squeeze market.
The first one is Melvin.
The second one is Elliott.
Who's next?"