$GameStop (GME.US)$ for me what happened on Friday blew my m...
$GameStop(GME.US$ for me what happened on Friday blew my mind what they did to retail should definitely be illegal without any prior notice like at least the day before. I've never seen anything like that happen and that in my book was abusing retail. This isn't even about my money anymore this feels like war.
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WatcHThaDIp : You experienced a Short Ladder*
A short ladder is a trading strategy primarily used by hedge funds and other institutional investors to manipulate stock prices. The process involves selling a stock short in rapid succession to create the appearance of increased selling pressure. This often leads to a decrease in the stock’s price, prompting other investors to sell out of fear, thereby driving the price even lower. Once the price has dropped sufficiently, the short sellers can then buy back the stock at the lower price, cover their short positions, and profit from the difference.
Why is it Used?
1. Price Manipulation: To artificially depress the stock price and create a buying opportunity at a lower price.
2. Profit from Short Sales: To profit from the difference between the higher initial selling price and the lower repurchase price.
3. Trigger Panic Selling: To induce panic among regular investors, leading to further price declines and additional profit opportunities.
When was it First Used by Hedge Funds?
The precise date when hedge funds first employed short ladder attacks is difficult to pinpoint. However, such tactics have been around since short selling became a more common practice in the 20th century. The use of sophisticated short selling strategies like the short ladder attack became more prominent with the rise of modern hedge funds in the late 20th and early 21st centuries, particularly as trading technology and market liquidity improved.