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Comment by rubatuga | Hacker News Reader

> The only reason Gamestop is going up is because of Tulip-mania. It's a classic bubble.

If only. This has no signs of being "classic". People on WSB realize that if many people purchase and hold on to GME stock for long periods of time, there will be an increase in stock price. If/when this occurs, this increases the annual cost for GME short sellers through increases in both Margin Interest and Stock Borrowing Costs, which is a direct percentage of the GME stock price. This depends on the short type, but either by a certain timeframe or if the lender desires, short sellers will be forced to buy back their GME stocks. Buying back GME can also be forced through a Margin Call. When this happens, you will see a short squeeze.

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> People on WSB realize that if many people purchase and hold on to GME stock for long periods of time

You have a lot of faith in a bunch of people not wanting to realize their profits on a stock that everyone knows is going to tank sooner or later. I'm sure some of them who got in on the run early won't make a dime because they'll hold on too long and then not give up even on the way back down, but some will want to make sure it's real money for them and then this thing is going to go down fast.

You obviously know nothing about the folks at wallstreetbets. It's not just a bunch of random people doing pump and dumps. Their methods and DD might be questionable at times but they base them on something and at times try to stick to that thesis.

Thesis in this case being “let’s protect GME from vultures and make some money on the side?” I have a hard time believing that is anything but PR. I’d hardly call the denizens of r/WSB altruistic. Sanctimonious, energetic, and smart? Absolutely. But they aren’t there because they want to empower the meek against the mighty.

Having lived through a number of cryptocurrency boom/bust cycles I’ve seen first hand how everyone is coordinated and holding the line...until those who have profit in their sights decide to find a bunch of bag holders to cover their exit. Poof.

> Having lived through a number of cryptocurrency boom/bust cycles

Strange statement. Everyone here has lived through the same, you aren't some special snowflake in this regard. Paying more attention than others to the daily price or memes means absolutely nothing in the end.

> base them on something

All the talk of short squeezing and sticking it to the hedge funds and Wall Street aside, they are really basing it on the belief that someone will buy it at a higher price than it is now which will be true until it's not.

Unlike Tesla or Bitcoin which many think are bubbles, this is a case where absolutely no one believes in Gamestop (being a $24 billion company, at least). There's not anyone who thinks holding it forever is a good idea at this price (or even at a fraction of the current price). In these cases when the stock stops going up it implodes very very quickly.

Additionally... Tulip-mania was driven up by false scarcity. People are buying up GME on principal as punitive action against hedge funds. SWJs + Day Trading = /r/WSB

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