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GameStop Short FTD Squeeze Timeline




Fed Overnight Reverse REPO Volume Hits Record High, Again

$755.8 billion in daily reverse repo operations awarded at an increased 0.05% interest to 68 Counterparties, setting yet another new all-time high.

NYSE President Claims Prices May Not Properly Reflect Demand, Due To Dark Pool Usage

Meme by u/Milkdud2000“In some of the meme stocks that we’ve seen, or stocks that have a high level of retail participation, the vast majority of order flow can trade off of exchanges, which is problematic,” said Stacey Cunningham, president of Intercontinental Exchange Inc’s NYSE. “That price formation is not really reflective of what supply and demand is,” she said at a conference hosted by CNBC.

An SEC review will also examine whether off-exchange trading - which is about 50% of the market when institutional block trades are included - distorts the price discovery mechanism for stocks, SEC Chair Mr. Gensler said.

Revised SR-DTC-2021-005 In Effect

Meme by u/Suspicious-Peach-440Technical updates into the mechanics of the ledger system for noting when securities are pledged as collateral would prevent shares from being pledged as collateral to multiple Participants. This would curtail a significant amount of naked shorting.

Dr. Michael J. Burry Restores His Twitter Account

Meme by u/ExtraBaconSensationAfter deactivating his Twitter account for a little over two months, he returns with a new Twitter banner depicting a WiFi Network available to connect to labeled "FBI Surveillance Van", confirmed to be from his iPhone in a now-deleted tweet.

Fed Overnight Reverse REPO Volume Hits Record High, Again

Chart by u/MJL_16$583.892 billion in daily reverse repo operations awarded at 0% interest to 59 Participants, setting yet another new all-time high for the firth straight (business) day.

Ford Equity Research Upgrades GameStop To Buy Recommendation

Ford Equity Research upgraded GameStop to a Buy from Hold rating.

“We project that GameStop will outperform the market over the next 6 to 12 months. This projection is based on our analysis of three key factors: earnings strength, relative valuation, and recent price movement.”

Benzinga Exposes Bias Against GameStop

In this biased article, as a massive insult to actual victims, Benzinga claims that Melvin Capital was the victim of a short squeeze after they & their co-conspirators illegally naked shorted the stock. Apparently, buying & holding makes victims of others /s

Fed Overnight Reverse REPO Volume Hits Record High, Again

$547.808 billion in daily reverse repo operations awarded at 0% interest to 49 Participants, setting yet another new all-time high for the fourth straight day.

Ortex Claims Shares Outstanding Increased To 74.27M

According to a Q10 filed with the SEC, GameStop only had 71,815,131 shares issued as of June 1st, 2021. Ortex now reports 74,270,000 shares, implying GameStop sold ~2.5M shares.

Emily McCormick on Yahoo Claims GameStop Investors Are Tired Of Waiting, Contrary To Sentiment On Reddit

In another display of biased journalism, despite the fact that the majority of retail investors on Reddit's various investing-related subreddits are bullish on GameStop's turnaround, Ms. McCormick tries to paint the picture that retail investors will soon give up and exit their positions due to the lack of clear direction provided by senior GameStop staff.

Katrina Lewis on Bloomberg Fortune Claims $GME Price Fell After Earnings Due to SEC Request

In another display of biased journalism, Ms. Lewis claims that the primary reason for the ~$100 drop in share price following GameStop's earnings announcement was due to the SEC requesting documents concerning $GME shares being traded, contrary to what a former SEC Enforcement Chief claims.

Fed Overnight Reverse REPO Volume Hits Record High, Again

$534.943 billion in daily reverse repo operations awarded at 0% interest to 54 Participants, setting yet another new all-time high for the third straight day.

Ryan Cohen Re-Appointed to BOD, Appointed Chairman

Meme by u/kamoob666, originally by u/ButtFarm69“We are trying to do something that nobody in the retail space has ever done,” Cohen said at the gathering, held in GameStop’s hometown of Grapevine, Texas. “But we believe we’re putting the right pieces in place and we have clear goals: delighting customers and driving shareholder value for the long term.”

While some investors had hoped Cohen would lay out a detailed plan for turning GameStop around, “that’s not going to happen,” he said. “You won’t find us talking a big game, making a bunch of lofty promises or telegraphing our strategy to the competition.”

“We have a lot of work in front of us,” he said. “Moving forward, we want you to judge GameStop based on our actions -- not our words.”

George Sherman, Former CEO, Re-Elected to BOD

The board of directors successfully retained Mr. Sherman's many years of retail experience whilst stepping down as GameStop's CEO, handing the reigns over to new CEO Matt Furlong.

Matt Furlong Appointed as New CEO

Mr. Furlong is a veteran e-commerce leader with significant experience implementing growth strategies across global geographies and product categories. Most recently, he was a Country Leader and oversaw Amazon’s Australia business during a period of substantial growth. He was previously a Technical Advisor to the head of Amazon’s North America Consumer business. Throughout his nearly nine years at Amazon, he also ran a variety of product categories and oversaw strong market share expansion. Mr. Furlong began his career at Procter & Gamble, where he was an executive focused on brand, marketing and sales strategies.

Mike Recupero Appointed as New CFO

Mr. Recupero is a seasoned technology industry finance executive, who spent more than 17 years at Amazon supporting growth across global geographies and product categories. He most recently served as Chief Financial Officer of the North American Consumer business after serving as Chief Financial Officer of Prime Video. He previously served as the Chief Financial Officer of the European Consumer business. He began his career at Amazon, holding Analyst, Manager and Director roles of increasing responsibility.

GameStop Reports Q1 2021 earnings

Meme by u/Halo5387Wall Street analysts expected earnings to come in at a loss of 83 cents per share, with revenues totaling $1.2 billion. The more optimistic earnings whisper number was set at loss of 64 cents per share with revenue expected to come in a bit light at $1.16 billion. GameStop actually beat all of these expectations; revenues came in at $1.277 billion during the quarter, up 25.1% from the prior year, and earnings-per-share amounted to a loss of 45 cents per diluted share.

$GME price declined ~$100/share in response to the good news, as is tradition /s

GameStop Annual Shareholders Meeting

The AGM was a short 15 minutes, presented by outgoing CEO George Sherman who announced the vote as valid will all resolutions passing. Following the meeting was a quick talk by Chairman of the Board, Ryan Cohen.

Buckle up.

GameStop AGM Vote Count Almost Entirely Equals Total Free Float

This is indicative that GameStop's vote tabulator, Computershare/Georgeson, has adjusted the votes to not exceed the free float so they can legally be submitted. Considering that some brokers reported that not all of their clients have voted, it is highly probably that more people voted than shares have been issue, implying there is a large short interest and potential for a short squeeze, or more likely, a MOASS.

GameStop Announces New 5M Share ATM Program

GameStop's “at-the-market” offering program for the offer and sale from time to time through Jefferies LLC of up to 5,000,000 shares of the Company's Class A common stock was submitted today to the SEC, along with a prospectus supplement. GameStop intends to use the net proceeds from the ATM Offering, if any, for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet.

Fed Overnight Reverse REPO Volume Hits Record High, Again

Demand for a key Federal Reserve facility used to help control short-term rates surged to more than half a trillion dollars for the first time ever, accommodating a barrage of cash in search of a home.

Fifty-nine participants on Wednesday parked a total of $502.9 billion at the overnight reverse repurchase facility, in which counterparties like money-market funds can place cash with the central bank. That surpassed the previous record volume of $497.4 billion from Tuesday, New York Fed data show.

SR-DTCC-2021-009 Rule Changes Proposed To Clarify Deadlines and Processing Times

The rule changes gives DTCC flexibility to change deadlines whenever they see fit.

Wes Christian Interviewed By Charles Payne on Fox Business

"The simple version would be if you and I, Charles, took our car title and Xeroxed it 100 times and sold it to 100 people and each of them paid us cash but we only had one car, that would be a good analogy to what naked short selling is. In Texas, [the] simple version, we call that stealing."

S3 Partners Claims 10/10 $GME Short Squeeze Potential

Ihor Dusaniwsky at S3 Partners tracks short interest in stocks in real time, has developed a Short Squeeze score, and ranks GameStop’s metric a 10 out of 10 for a short squeeze.

Interactive Brokers' CEO Thomas Peterffy Warns Tempted Short Sellers That Stocks Can Reach "Unimaginable Heights"

Mr. Peterffy contradicts himself when he says naked shorting is impossible due to severe penalties from the SEC, even though IBKR has been fined previously for Reg SHO violations. It is analogous to saying speeding in a car is impossible due to fines police hand out.

As u/ezzune says, "'It is impossible to do' and 'The penalties for doing are severe' are mutually exclusive. Anyone with a brain should be able to see this is horseshit."

CNBC's Freudian Slip: Mentions 'Naked Shorting'

In a since-edited clip posted by CNBC, anchor Melissa Lee audibly mutters "naked shorting, yeah" while another correspondent talks about the situation surrounding meme stocks. Editors cut back to a clip where an expression of surprise lasts a few seconds while producers talk in her ear until she recovers and carries on the conversation with several negative vocal inflection points revealing her lack of confidence in the words she subsequently spoke.

Other news outlets in subsequent days, including Fox Business News, would go on to talk about naked shorting, what was once a unspoken forbidden topic.

BofA Global Research Ceases GME Analytical Coverage

meme by u/TrendingMemesAnalyst Curtis Nagle announced in a pair of client notes on Thursday night that Bank of America was terminating coverage of GameStop, citing a reallocation of resources.

SEC Fires Financial Audit Watchdog

SEC Chair Gary Gensler has continued cleaning house by removing Trump-era appointee William Duhnke who was the chair of the Public Company Accounting Oversight Board.

He was the head of the PCAOB which is responsible for not only setting audit standards that auditors have to adhere to but is also responsible for inspecting and monitoring corporate audits. They inspect the auditor's work documents and question what the auditors did, their rationale for their conclusions, and also challenge those procedures.

GameStop Removed From Russel MicroCap ETF

The popular ETF provider has removed GameStop from it's MicroCap ETF. GameStop is expected, although not yet confirmed, to also be moved from the Russel 2000 ETF to the Russel 1000 ETF, according to a Yahoo article which states that Russel 2000 companies need a required $7.3B market cap on May 7th to me upgraded into the Russel 1000. Since GameStop closed at $161.11 on May 7 and had ~71.8M shares outstanding, that puts GameStop's market cap at ~$11.6B and eligible for inclusion into the Russel 1000.

Jefferies Prime Brokerage Blocks Short Sales Of $GME & Other Meme Stocks

Investment Banking Company Jeffries suspends short sells on $GME, $AMC, & $MVIS. Much like cutting someone off at the bar, Jefferies has cut off short sellers.

They have not stated why but it’s likely due to the high risk of shorting these stocks & potential infinite losses.

GameStop used Jefferies to complete the recent 3.5M ATM share offering.

Ryan Cohen Tweets Picture Of A SEARS Being Demolished

On face value, similarities can be drawn between retailer SEARS failing to react to digital times and what likely would've happened to GameStop had Mr. Cohen not taken control of the company. There is speculation that a SEC form ARS may be filed for the upcoming Annual Shareholders Meeting, or that SARs (Suspicious Activity Reports) might've been filed concerning the speculated impossibly-high vote count to be revealed at the upcoming annual shareholders meeting.

Reddit r/Superstonk AMA With Lucy Komisar & Wes Christian

In this follow-up interview with Wes Christian, award-winning journalist interviews Mr. Christian on behalf of r/Superstonk.

DeepFuckingValue Break Silence With Series Of Tweets

After a month-long hiatus speculated to disprove notions that his public communications are causing GameStop's ever-rising price action (presumably on advice from his lawyers following a frivolous lawsuit against him), broke his silence with a series of tweeted memes.

UK Broker Hargreaves Lansdown Doubles Down On $GME Voting Refusal For Its Clients

The UK broker blames their custodian bank CREST who does not have voting setup as an offering.

German Broker TradeRepublic Does Not Allow $GME Voting For Its Clients

TradeRepublic claims it's clients need to contact GameStop Investor Relations, whereas GameStop Investor Relations claim because the investors are outside of the U.S., voting must be organized through their broker & their brokers US Custodian.

Japanese Broker Rakuten Securities Does Not Allow $GME Voting For Its Clients

Rakuten Securities claims it's clients can't vote because they use Interactive Brokers as their U.S. Custodian who holds the shares under Rakuten's name, not Rakuten's clients names.

Dutch Regulator AFM Releases GameStop Investors Statistics

The AFM has analysed the trading in GameStop shares by Dutch retail investors over the period from January 18 until March 18, 2021. This analysis showed that:

  • 29,394 individual Dutch retail investors traded GameStop shares in this period
  • These investors had never previously traded in GameStop shares
  • At some Dutch brokers, GameStop was the most traded stock in February and March 2021
  • The investors trading GameStop shares are mainly ‘younger’ investors
  • The average age was 31 years
  • Most common age, consisting of 1,698 investors, was 26 years
  • 20% of the investors bought at or below $101 per share
  • 80% of the investors bought at or below $279 per share
  • The average purchase price within this group of investors was $189 per share
  • 80% of the investors purchased for a total
    value of $4,270 or less
  • The average purchased total value within this group of investors was $11,532
  • At least 40 investors purchased for a total value of more than $1 million

$GME OBV Spikes To 1.42 Billion

Per Investopedia: "Granville believed that volume was the key force behind markets and designed OBV to project when major moves in the markets would occur based on volume changes. In his book, he described the predictions generated by OBV as 'a spring being wound tightly.' He believed that when volume increases sharply without a significant change in the stock's price, the price will eventually jump upward or fall downward."

Ryan Cohen Tweets Patriotic Message

While his patriotic message "God bless 🇺🇸" is likely just in respect of Memorial Day in the USA, that hasn't stopped others from speculating about hidden meanings. Anagrams of "God bless America" include; "big moass cleared", "declare big moass", and "a big dream is near"

r/Superstonk Debuts AI, Satori, To Combat Shills

Meme by u/gwashingmachine. Satori: system for automation of tracking, oversight, reconnaissance, and interdictionBack in March, a group of behaviour specialists and programmers teamed up to develop an AI that would derive intent from a user's posts and comments to help moderators sus out shills. The original karma and age restrictions place on r/Superstonk lapsed on May 25th, and the mod team saw 24/100 suspicious posts jump up from 3/100. After many iterations and much testing, the new AI is now operational.

DOMO Capital Calls Out Biased Fox Business Network Journalist Charles Gasparino

DOMO Capital, longstanding GameStop investors whom Ryan Cohen interviewed before heavily investing in GameStop, calls out Mr. Gasparino for his lack of journalistic integrity.

Spectrum News NY1 Biased Reporting

Spectrum aired a piece about how bonuses & pay for CEOs in America continue to rise during a global pandemic, with footage in the background lasting ~3 seconds per shot, until a still of GameStop's CEO George Sherman is presented for 6 seconds followed by a shot of a GameStop retail location for 10 seconds. Spectrum News NY1 attempts to associate negative connotations to GameStop & GameStop's CEO using this visual anchoring technique.

UK Broker T212 Does Not Allow $GME Voting For Its Clients

A reply to Johnny's request for additional information said, "All shares hold within Trading212 are held within an omnibus account by our Intermediary. As such, you are a beneficiary shareholder, not a common shareholder. Voting rights, as you have guessed by now, are reserved for common shareholders only."

r/Superstonk Online Users Drops From ~80k to ~24k In Mere Minutes

It is speculated that the amount of bots on r/Superstonk has increased substantially in the past months and the sudden drastic drop in online Redditors is reminiscent of the $GME flash crash on March 10. r/AMC online users flash crashing from 40k to 8k in the same time period was also reported.

eToro Opens $GME Voting For Its Clients

eToro has historically not had infrastructure setup for its clients to participate in shareholder votes. Due to significant demand from its clients, it has created a pilot program for $GME holders to vote at this year's proxy.

Conservatively, if we assume these eToro customers have at least one share of GME, we can hypothetically calculate an estimate of the total number of GME investors. 96,660 eToro GME investors / ~1.5% of ALL GME investors = ~6,444,000 GME investors.

That's ~6.4M INVESTORS, not shares.

If each person holds on average 3 shares, that's ~19.3 million shares.
If each person holds on average 15 shares, like Scandinavian brokers do, that's ~96.6 million shares.

This is the first time enough confirmed information has been assembled to determine an absolute minimum number of shares being traded (~6.4M), and the actual number is likely many multiples higher.

Singapore Broker Tiger Brokers Opens $GME Voting For Its Clients

An email from Tiger Brokers sent to u/Cotton_TigerTiger Brokers, a smaller Singapore brokerage firm who uses Interactive Brokers as their clearing agent, due to demand from its clients, has enabled voting.

Scandinavian Bank DNB Opens $GME Voting For Its Clients

Norwegian bank DNB, due to demand from its clients, has enabled them to request a control number at the cost of 2,000 kroner that can then be used to cast a ballot at proxyvote.com or attend the AGM in person.

Scandinavian Broker Avanza To Register A Non-Vote Totalling 322,545 Shares

The Swedish broker will report their client's share holdings of ~323k shares at the Annual Shareholders Meeting. Their 22,023 shareholders account for 0.4% of $GME holders.

Scandinavian Broker Nordnet To Register A Non-Vote Totalling 329,812 Shares

The Nordic broker will report their client's share holdings of ~330k shares at the Annual Shareholders Meeting.

Ryan Cohen Tweets Picture Of A Tombstone

Tombstones are used to announce a variety of things like initial public offerings or a closed merger & acquisition deal. It is speculated that Mr. Cohen plans to merge GameStop with another corporate entity which would require a new CUSIP, forcing a share recall so that shareholders could receive their new shares with the new CUSIP and possibly triggering the MOASS.

The wording on the image says "RYAN COHEN, R.I.P. DUMB ASS", which can be read as an anagram saying "MOASS NEAR CHIN UP B RDY", or "BUY THE DIP R CHN" which can be extrapolated to "buy the dip -Ryan Cohen". Other speculations include the financial term rip which means a dramatic upward move in the price of an asset, relative to surrounding price moves.

SR-OCC-2021-003 Rule Changes Approved by SEC

After SIG Susquehanna filed comments against OCC-003, the SEC approved OCC's "Skin-In-The-Game" rule change which will be implemented at the OCC's will. This rule change requires participants to contribute additional funds to the Clearing Fund, an emergency fund to be used if needed when a Member defaults. This rule was needed before SR-OCC-2021-801 could be in effect.

Fed Overnight Reverse REPO Volume Hits Record High

The amount of cash flowing into the U.S. Federal Reserve’s reverse repurchase (RRP) facility hit an all-time high of $485 billion on Thursday, further pressuring key short-term interest rates, which could fall below zero.

The amount of money cash-heavy financial institutions have been loaning the central bank overnight at 0% interest has been ratcheting higher since March.

The record amount accepted by the New York Fed for Thursday’s RRP operation was up from Wednesday’s $450 billion and exceeded a previous high of $474.6 billion on Dec. 31, 2015, according to data from TD Securities.

eToro Announces Pilot Program To Allow $GME Voting For Its Clients

eToro has historically not had infrastructure setup for its clients to participate in shareholder votes. Due to significant demand from its clients, it is creating a pilot program for $GME holders to vote at this year's proxy due to be announced the following day.

CNBC Continues Biased Reporting

u/Chief-Aldo capture this photoCNBC chose to report $GME not being as high as the January mini-squeeze price instead of reporting on it rising over 1100% year to date, and excluded it from their retail winners list even though $GME was up more than 15% compared to the previous day.

u/atobitt Releases Exposé on FINRA: House of Cards - Part 3

This meme by u/rabeenesh incorporates Britney Spear's hit Oops I Did It Again"The current short interest reported by FINRA from fund data on stocks is absolute bull, and always has been.

This is because funds have been found guilty of violating short interest report rules for decades, especially when their short positions were clearly illegal (i.e. naked shorting [obviously]).

We can also see through the ridiculous volatility and volume levels of GameStop that shorts indeed have not covered and that they're still holding unspeakable levels of short positions on the stock.

And now because the vast majority of GameStop share owners [are] buying and holding their shares (and if they continue to do so), the true short interest will inevitably reveal itself and we'll be in for the short squeeze of our lives."
Quote by u/fortifier22

$GME Surpasses $215 Per Share

u/stonk_sandwich combines Ryan Cohen's tweet from the previous day with this day's stock chartThe sudden ~15% jump in price following no GameStop news helps gives credence to the T+21 & T+35 FTD settlement theories surrounding cyclical price hikes.

GameStop Building A NFT Platform On Ethereum

The exact scope of the project is unclear, though prominently featured on the page is a link to an Ethereum address, indicating that GameStop's team will use Ethereum as a technology base.

Ever-embracing meme culture, the initial contract ID leads with 1337420, or 1337 420, with a launch date of July 14th 4:20pm PST which falls in the Cancer zodiac sign whose symbol is ♋. One GME token is also worth .42069 ETH.

July 14th is also Bastille Day which commemorates the day where the French citizens—who were insanely oppressed by the monarch—rose up, stormed the Bastille, and overthrew the ruling 1%. Bastille is synonymous with Citadel.

Scandinavian Broker Avanza Still Does Not Allow Voting

The Swedish broker has been telling their customers they do not have the ability to vote, and that their custodian bank BNP Paribas takes away their right to vote.

Reddit r/Superstonk AMA With Lucy Komisar

In this follow-up interview, Lucy shares the history and the purpose of the formation of the SEC as well as details on their regulatory oversight.

German Broker Comdirect Adds $GME Voting Capabilities

Several overseas brokers do not allow their clients to vote on foreign proxies. Due to demand from $GME holders, Comdirect has added $GME voting abilities.

Robinhood Provides Wildly Inaccurate Cost Basis

Screenshot of Robinhood $GME cost basis by u/Far-Opportunity2942Investors who transferred out of Robinhood to other brokers were surprised to find out weeks later the cost basis of their holdings reported by Robinhood. Some people claim shares were purchased at prices higher than the record high of $483 in late January. This sparked much speculation about the reasons, including poor backoffice record keeping, to a JIT (just-in-time) model, to outright fraud.

Ryan Cohen Tweets Heart Emoji

One interpretation is a show of support for GameStop's donations campaign, #GameStopGives, and a recent donation of 5,000 toys to underserved kids. Some speculate that <3 can be interpreted as less than 3, as in less than 3 weeks until GameStop's upcoming Annual Shareholders Meeting 11am EST on June 9 where vote results and count are expected to be revealed. This speculation is partially fueled by Mr. Cohen tweeting ❤ 2 minutes past 11am, which is technically 2 minutes into the beginning of the AGM being less than 3 weeks away.

Joseph Saveri Law Firm Appointed Co-Lead Counsel In January 2021 Short Squeeze Trading Litigation

The Court organized the 50-plus actions alleging various claims against the defendants into four tranches (groups): antitrust claims, state-law claims against Robinhood entities, state-law claims against broker-dealer defendants, and federal securities law claims. The Firm was one of two firms appointed as lead counsel of the antitrust tranche.

The Firm represents a proposed class of retail investors against 35 defendants, including Robinhood, E*TRADE, TD Ameritrade, Melvin Capital, Citadel, Sequoia Capital, and others. Plaintiffs allege that they and other retail investors continue to be injured due to a large, overarching conspiracy among the defendants to stop them from buying stocks in open and fair public securities markets. Plaintiffs contend that the purpose and effect of the scheme was to shield hedge funds, venture capitalists, and institutional investors from massive losses they had exposed themselves to due to their highly speculative short selling strategies. Plaintiffs bring claims under the federal and state antitrust laws as well as other state laws and common law.

Reddit r/Superstonk AMA With Wes Christian

Wes is a fourth generation Texan, who has handled complex litigation in at least eight different states and two countries. Most of these cases have been in State or Federal Courts; some have been complex arbitrations.

He is licensed to practice in 11 Courts across the U.S. and everywhere in Texas and New York. His primary focus in the last 11 years has been suing Wall Street for fraud. He has also handled many disputes involving breach of contract, fraud, wrongful death, intellectual property, breach of fiduciary duty and serious personal injuries or wrongful death actions.

FINRA Passes SR-FINRA-2021-009 Rule Changes To Increase Liquidity Requirements

FINRA is proposing to adopt a Supplemental Liquidity Schedule (SLS) in which SLS would be required to be filed by each member with $25 million or more in free credit balances (read: margin account) and by each member whose aggregate amount outstanding under repurchase agreements, securities loan contracts, and bank loans is equal to or greater than $1 billion.

99% Of Broker CMC Markets' $GME Clients Have Not Sold

Client sentiment, which includes data on number of clients, client position value and combined view, is a graphical representation of clients with an open Position in this Product by reference to the direction of their Position (buy or sell).
The total number of clients with open Positions in this Product, as a percentage of bought to sold as at the time of measurement.
The total position value (Units * Level 1 Mid-Price) of open positions in this product, as a percentage of buy to sell, as at the time of measurement.

Melvin Capital Files 13F Revealing No $GME Holdings

Reporting up until 3/31/2021, Melvin Capital does not list any GameStop holdings. It is possible they requested confidential treatment from the SEC in regards to their short position on GameStop, as they have done in the past with other securities, especially since there are no put contracts at all listed on today's 13F.

Ryan Cohen Tweets Picture of His Grandma

Elton John, known for his hit song Rocket Man, revealed in an interview his mom said "e;I love you, too. I don't like you, but I love you. But I don't like you.". Another theory is that lyrics from the song You Really Got A Hold On Me by Smokey Robinson & The Miracles "I don't like you, but I love you", also contains the lyrics "please Hold me, SQUEEZE, HOLD me, HOLD me"

OCC Temporarily Increases Clearing Fund Size

The temporary increase would result in an increase of $588,378,155 to the Clearing Fund, which will be allocated proportionately among Clearing Members. Clearing Members with a deficit for their portion of the Clearing Fund will receive notification today, May 17, of the amount of the deficit. The acceptable forms of deposit for Clearing Fund deficits include cash and Government securities in accordance with OCC Rule 1002 and minimum Clearing Fund Cash Requirements will apply.

The Motley Fool Sponsored By Citadel & Melvin Capital

The Motley Fool, the news arm of the Motley hedge fund, has been publishing several negative GME articles. Their review at theladders.com claims that The Motley Fool is sponsored by Citadel LLC and Melvin Capital.

u/WardenElite Is Removed As r/Superstonk Moderator

u/ZiraelN7 depicts u/WardenElite being ejected from Among UsAfter posting a DD claiming that setting stop losses below VWAP and using market sell orders during the squeeze were good ideas, apes called him out and within mere hours, r/Superstonk mods assembled and collectively agreed to remove disgraced u/WardenElite from the mod team, although he resigned under his own volition first.

Reddit r/Superstonk AMA With Lucy Komisar

Lucy Komisar’s beat is the secret underbelly of the global financial system — offshore bank and corporate secrecy — and its links to corporate crime; tax evasion by the corporations and the very rich; empowerment of dictators and oligarchs; bribery and corruption; drug and arms trafficking; and terrorism.

Canadians Count Proxy Control Numbers Issued, Already Eclipsed 100k

Canadian GameStop investors noticed that the unique proxy control numbers are given in sequential order and began a spreadsheet to track them. The numbers appear to be unique per country, not per broker. While unique proxy numbers have been tracked from the low 4-digits, they have tracked as high as 6-digits, implying Canadians alone account for ~100k+ GameStop investors.

GameStop Tweets Comment On Mass Effect Tweet, Corrects It To MOASS Effect

The since-deleted comment on the tweet, unlike the majority of GameStop's tweets posted by SalesForce Social Studio, was posted from an iPhone like the majority of Ryan Cohen's tweets. It is speculated that Mr. Cohen made the comment to signal followers that there is still potential of a MOASS.

Reddit r/Superstonk AMA With Carl Hagberg

Mr. Hagberg has more than 45 years experience in the Securities Industry. He has held senior level positions in operations, marketing and general management assignments and served on the boards of two highly successful financial services companies.

Mr. Hagberg is considered to be one of the nation’s leading experts on individual stock ownership programs. He has helped over 100 companies (including companies and government agencies in several Eastern European and Central Asian countries) to launch, improve or remarket programs aimed at customers, employees, existing stockholders and other affinity groups. He is also considered to be a leading expert on the proxy voting process and has served as Independent Inspector of Election, both in contested and uncontested situations, at over 300 annual and special meetings of shareholders.

SR-FINRA-2021-009 Rule Changes Proposed

Changes include regular scheduling of liquidity tests and better liquidity reporting.

SR-NSCC-2021-002 Rule Changes Delayed By SEC For Additional Comments

After receiving numerous comment letters about the proposed rule change, the SEC decided to extend the comment period of SR-NSCC-2021-002 to May 31st from May 7th before rendering their judgement to DTCC by June 21st.

SR-NSCC-2021-006 Rule Changes Proposed To Speed Up New Rule Changes

NSCC is proposing to delete a requirement in Rule 33 that Members and Limited Members be given 10 business days’ notice of any proposed amendment to the Procedures. NSCC is also proposing to replace “immediately” with “promptly” in Rule 36 in order to provide that NSCC will promptly—but might not immediately—notify Members and Limited Members of any proposed rule changes. Once approved by the SEC, this will allow NSCC to enforce procedure changes quicker that otherwise would've required a 10 day notice following SEC approval.

Fidelity Increases Limit Order Pricing To 500% Above Market Price

A common complaint by Fidelity customers was that they could only submit orders that were 50% above the current trading price of a ticker. Fidelity has listened to their users and increased the limit to 500%. Their new formula for calculating the limit is simplified as: (Stock Price x 500%) + Stock Price = New Sell Limit Max. For example, a stock currently trading at $100/share could submit a sell order for up to $600/share instead of the previous limit of $150/share. This is still a far cry from some Redditors committed to not selling until $GME reaches $10M/share, but a step in their desired direction.

CommSec Reports 90% Buy:Sell Ratio

Australia broker-dealer CommSec reports $GME being the second most traded international stock with an average 9:1 buy:sell ratio amongst their customers.

South Korean Broker Kiwoom Automatically Submits GME Votes On Behalf Of Their Investors

u/NyamNyam1227 received a notification from the largest broker in South Korea, Kiwoom, notifying them that unless they wish to vote "No" to any of the proxy questions, Kiwoom will automatically submit their vote answering "Yes" to all questions.

Scandinavian Broker Nordnet Does Not Allow $GME Voting For Its Clients

"Hi, after many inquiries, we thought it would be nice to have a brief explanation of voting at the General Assembly in the United States. It is not possible to vote at a general meeting in the United States. All US shares are stored in a joint nominee account through our custodian bank and it is therefore not possible to vote for these. Nordnet never votes for any general painting on behalf of our customers."

U.S. House Committee Summons SEC Chair Gary Gensler, DTCC CEO Michael Bodson, FINRA CEO Robert Cook to Hearing

In the third hearing chaired by Congresswoman Maxine Waters, the SEC, DTCC, and FINRA are represented by their heads and are questioned by the House Committee on Financial Services.

DTCC CEO Michael Bodson Confirms During Hearing, No DTCC Participants Margin Called During January $GME Run-Up

"The system worked, there was incredible volume, the system processed that volume, there was big changes in margin, firms met that margin, nobody was defaulting, nobody was pushed into that situation from a firm-basis."

S&P Upgrades GameStop's Rating, Removes GameStop From CreditWatch

S&P Global Ratings said in a note that it lifted GameStop’s credit rating to “B” from “B-” and removed it from CreditWatch after the company issued $550 million in equity and redeemed all balance sheet debt.

“We expect these actions to provide additional runway to achieve its business transformation initiatives, provide liquidity, and improve GameStop’s financial risk profile,” S&P analysts wrote.

S&P's move was seen to help the company significantly, by putting it into a better position to negotiate terms with suppliers.

~1M Volume of $GME Disappears on Lowest Volume Day Of 2021

The next lowest volume date was April 29, 2021, with ~1M more volume (3,753,500). $GME traded 2,768,890 in volume this day. During after-hours ~1M of volume was inexplicably deleted. Depending on brokerage, some display the ~-1M volume as a single after-hours candle, whereas others do not and instead show a total volume of the day at ~1.7M instead of the original closing volume of ~2.7M. It is believed the change in volume was caused by CTA restarting frozen software that tracks volume, however a later post mortem revealed it was Tape B that was having issues and was restarted which did not affect $GME because $GME resides on Tape A.

Former Citadel Employee David Lauer Does AMA For r/Superstonk

A message from Dave Lauer: "I built low latency trading systems, and then worked as a high-frequency trader at Citadel and then Allston Trading. I left about a year after the Flash Crash (2011), disturbed at the impact of HFT on markets. I have since testified before the US Senate, worked with the SEC and CFTC, helped institutional investors understand market structure, represented them in DC, and quantitatively analyzed their brokers' order routing algorithms. I worked with IEX early on, and sit on the board of Aequitas NEO in Canada. I also sit on FINRA's Market Regulation Committee. The last 2 years I've focused on novel applications of AI, both in finance and beyond, and am also on the founding editorial board of the Journal of AI and Ethics."

SR-NSCC-2021-801 Rule Changes to SLD Requirements Passes SEC Review

NSCC-2021-801 depends on SR-NSCC-2021-002 which is pending a no-objection filing by the SEC before it can be implemented.

Fidelity Customer Service Agent Claims ~500k Robinhood Users Migrated After Robinhood Prohibited Buying

In a phone call recorded by u/Doom_Douche, a Fidelity agent recalls hearing that ~500k people transferred the weekend following the Jan 28 events where Robinhood and other brokers limited buying of $GME and other meme stocks.

Better Markets CEO Dennis Kelleher r/WallStreetBets Post Silenced

Rumors of WSB being compromised have been around since the drama surrounding u/zjz. It is viewed that the removal of Better Markets' Dennis Kelleher's post, someone who dedicates their life to leveling the playing field for retail investors while also exposing corruption within Wall Street, is a sign of WSB's hidden agenda. Lately the majority of GME-related posts are pruned from WSB, the mega-threads have ended, and many users claim to be banned from WSB for their pro-GME stance.

GameStop Completes Early Redemption of Senior Notes

On April 30, 2021, GameStop completed its voluntary early redemption of $216.4 million in principal amount of its 10.0% Senior Notes due 2023. This voluntary early redemption covered the entire amount of the outstanding 10% Senior Notes, which represented all of the Company’s long-term debt. A big part of the bear thesis was that GameStop would default on the senior notes due 2021, and here GameStop paid off in full even their debt due 2023. Paying off these debts frees the company to perform actions like making acquisitions and issuing dividends.

$GME price declined ~$15/share in response to the good news, as is tradition /s

GameStop Expands Fulfillment Network with New Facility in York, Pennsylvania

GameStop announced the expansion of its North American fulfillment network through its entry into a lease of a 700,000 square foot fulfillment center in York, Pennsylvania. This facility is expected to be operational by the fourth quarter of 2021 and will support ecommerce and fulfillment needs. The Company expects its fulfillment center in York, Pennsylvania will position it to grow product offerings and expedite shipping across the east coast.

Claims of Bots Spamming YouTube Comments Promoting Robinhood

Claims surface about bots spamming YouTube comments recommending that people switch brokers over to Robinhood. It has been estimated that Robinhood has already seen ~8M+ users transfer out to Fidelity alone, representing close to half of their customer base.

4.75:1 Buy:Sell Ratio of $GME by Fidelity Clients

Nearly 3.5 months after the January mini-squeeze, Fidelity customers are still predominantly net buyers. This implies that the majority of Fidelity users are continually buying $GME when possible (pay day) and generally not selling

NSCC-2021-801 Rule Changes Further Revised

Still not yet in effect, this most recent revision of the proposed rule changes removes some ambiguity in the language to further empower NSCC to require supplemental liquidity deposits within 1 hour that can now be calculated based off of a Participant's risk from any time period. Interestingly, although dated for Monday, this was posted on Sunday, indicating DTCC is feverishly working towards closing potential liabilities it may be exposed to.

Apex Clearing & Interactive Brokers Named In New Lawsuit Over January $GME Halts

Interactive Brokers Group and APEX Clearing Corp. were hit with a securities lawsuit Friday in Florida Southern District Court. The lawsuit, brought by Gucovschi Law, is part of a spate of similar litigation over the January trading halt on GameStop and other securities. Counsel have not yet appeared for the defendants.

Florida Lawsuit vs. Apex Clearing & Interactive Brokers Filed

In an interview with Financial Planning, Tricia Rothschild, President of Defendant Apex, indicated that Defendant Apex had sufficient resources to meet the collateral requirements of the NSCC, evidencing that their decision to restrict the Stocks was arbitrary, capricious and self-serving:

Question: Apex was one of the firms that restricted GameStop trading at the end of January. Are you able to specify whether Apex Clearing had to raise capital at the time, like Robinhood did?

Answer: We restricted the trading for approximately three hours on one day due to anomalous information that we got. We were fine by the end of the day. We have headroom in terms of the capital available to us on our balance sheet. We have lines of credit that we can call on as needed. We did stop the trading for three hours, and then it was resolved and we moved forward, and have not had any issues and have not looked back.

GMO Trust Takes Heavy Losses Over GME

After claiming on Bloomberg Television Jan 28 that retail investors will lose their life savings, in GMO's annual shareholder report it is revealed that "a mix of companies held ... underweight positions among the top detractors included GameStop. This is likely the reason for their removal from the NSCC's Participants registry.

GMO Trust No Longer A NSCC Participant

After claiming on Bloomberg Television Jan 28 that retail investors will lose their life savings, in addition to taking heavy losses from betting the short side against $GME, NSCC notice A# 8997 announces that as of May 5th GMO will no longer be a NSCC Participant, presumably due to liquidity issues from betting on the short side of $GME.

Ryan Cohen Tweets A Clip From South Park About Hankey The Christmas Poo

The episode containing this caption centers around an animated poop that only one person can see, but by the end of the episode everybody can see that it is real. Basically, shit got real, which could be analogous for short sellers.

Reddit r/Superstonk AMA with Dr. Susanne Trimbath, PhD

Susanne Trimbath holds a Ph.D. in Economics from New York University and received her MBA from Golden Gate University. Prior to forming STP Advisory Services, Dr. Trimbath was Senior Research Economist in Capital Studies at Milken Institute (Santa Monica, CA) and Senior Advisor on the Russian Capital Markets Project (USAID-funded) with KPMG in Moscow and St. Petersburg.

She previously served as a manager in operations at Depository Trust Company in New York and the Pacific Clearing Corporation in San Francisco; she started her career in financial services operations at the Federal Reserve Bank of San Francisco. Since 1989, Dr. Trimbath has taught economics and finance in university graduate and undergraduate programs as adjunct, associate and full-time professor. In 2009, she was certified to teach in the distance-learning environment by both Bellevue University (Nebraska) and University of Liverpool (UK, by Laureate International, Amsterdam). Dr. Trimbath helped create the Transportation Performance Index for the U.S. Chamber of Commerce (Washington, D.C.) which she used to demonstrate the real economic payoff of investments in infrastructure.

Her most popular book Naked, Short and Greedy: Wallstreet’s Failure to Deliver, is available on Amazon. Following this AMA she adopted the given nickname of Queen Kong.

New SEC Enforcement Director Alex Oh Resigns

Ms. Oh resigned after just four days on the job.

"Today’s resignation of the SEC Director of Enforcement, who spent more than 20 years as a Wall Street defense lawyer and only a little more than three years as a prosecutor in the last millennium, should be viewed as an opportunity for the agency to select someone more appropriately qualified for the job, one with deep and broad experience in protecting the public interest without fear or favor. There are lots of highly qualified federal and state prosecutors, state securities regulators, and many others, including among the outstanding career professionals at the SEC itself, who would excel in that job."

r/Superstonk Is Polled To Determine Shares Held By Its Users

After two polls and comparing to another user's results, u/TheCaptainCog estimates r/Superstonk subscribers own between 27 million and 35 million shares of $GME. This does not take into account any other retail investors not subscribed to r/Superstonk. At the time of this post, it was estimated based on information from the Proxy documents that the free float is only ~59M shares, implying the subreddit's users alone hold half the free-trading float.

GameStop Completes ATM Offering

The up-to $1B At-The-Market Equity Offering Program of maximum 3.5M shares has completed, with a total of 3.5M shares sold raising pre-commissions proceeds of ~$551M. This was well-received as there is no further threat of share dilution and the process itself hardly dropped the share price. $GME rose ~$20/share in AH following the release of the ATM offering news after market close.

Robinhood's New Crypto COO Christine Brown Hosts Reddit AMA, Goes As Well As You Expect

u/kamayatzee criticizes Robinhood's failures at handling both $GME and Dogecoin run-upsRobinhood's newly appointed crypto COO Christine Brown hosts a Reddit AMA to answer concerns from users who were unable to sell Dogecoin after the recent run-up to $0.47/coin from $0.09/coin. Several comments roasting Robinhood for their recent failure to Dogecoin traders were fueled by lingering emotions surrounding their failure with the $GME January run-up. Robinhood is accused of deleting comments containing dissenting opinions from the AMA.

Ryan Cohen Tweets A Clip From South Park About Long Trains

The full clip involves the South Park kids watching a train safety video featuring several people in different clips getting mowed down by trains when they had ample time to move out of the way. The implication is that $GME shorts had plenty of time to get out of the way of the "long train"

South Korean Ants Declares War On Short-Sellers

The wave of amateur Korean traders has been inspired by a US campaign against hedge funds that had made bearish wagers on companies such as gaming retail chain GameStop. Kstreetbets, an online forum that targets short-sellers, is named after the popular Reddit group r/WallStreetBets

11:3 Buy:Sell Ratio of $GME by Fidelity Clients

Nearly 3 months after the January mini-squeeze, Fidelity customers are still predominantly net buyers. This implies that the majority of Fidelity users are continually buying $GME when possible (pay day) and generally not selling

GameStop Files Proxy Statement, Voting Opens

Information pertaining to voting for the Annual Shareholders Meeting was released, urging shareholders to vote as early as possible. Theories about the early voting involve GameStop receiving far more votes than shares are available, which would be cause to initiate a share recount by recalling all shares.

End of SEC Enforcement Grace Period of Rule 15c3-3

As of April 22, 2021, broker-dealers will be required to bring themselves into compliance margin requirements. Rule 15C3-3 established the requirement to keep enough cash and securities in a segregated account that will cover a portion of the costs of a major market move.

SEC Appoints New Enforcement Director Alex Oh

The Securities and Exchange Commission announced that Alex Oh has been appointed Director of the Division of Enforcement. Oh was most recently a partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP and co-chair of the law firm's Anti-Corruption & FCPA Practice Group. She was previously an Assistant U.S. Attorney in the Criminal Division of the U.S. Attorney's Office for the Southern District of New York, where she was a member of the Securities & Commodities Fraud Task Force and the Major Crimes Unit.

u/atobitt Releases Exposé on the DTCC: House of Cards - Part 1

TL;DR- The DTC has been taken over by big money. They transitioned from a manual to a computerized ledger system in the 80s, and it played a significant role in the 1987 market crash. In 2003, several issuers with the DTC wanted to remove their securities from the DTC's deposit account because the DTC's participants were naked short selling their securities. Turns out, they were right. The DTC and it's participants have created a market-sized naked short selling scheme. All of this is made possible by the DTC's enrollee- Cede & Co.

DTC-2021-007 Rule Change to Use ClaimConnect Instead of APO

The proposed rule change would direct participants to use DTC's automated ClaimConnect service instead of the DTC's Adjustment Payment Order to make manual, Participant-to-Participant, cash adjustment claims to principle and interest payments on stock loan and repurchase agreement positions. ClaimConnect should allow DTC to accurately determine shares loaned, proper share ownership (FTDs?), and calculate associated risks with share loans (which is all currently self-reported). More market transparency for DTC to prevent future over-leveraging. DTC proposed an effective date of July 9, 2021.

Reminder Issued About Approaching End of SEC Enforcement Grace Period of Rule 15c3-3

As of April 22, 2021, broker-dealers will be required to bring themselves into compliance margin requirements. Rule 15C3-3 established the requirement to keep enough cash and securities in a segregated account that will cover a portion of the costs of a major market move

u/pinkcatsonacid Is Approached To Shill on Reddit

A prominent (and future mod of r/Superstonk) poster was approached by a social media agency to be paid to post content on behalf of an unnamed client in exchange for compensation, which she ultimately declined. A screenshot of the initial conversation, and the first minute of a subsequent phone call to discuss the offer were posted as proof in the Reddit thread.

Interactive Brokers Updates Margin Lending Agreement

The new agreement gives IBKR more flexibility in determining how risky a trade is considered and gives them more flexibility to forcibly liquidate positions held in margin accounts.

u/DeepFuckingValue Final YOLO Update

DFV sees ~$30.9M in unrealized gains. He exercised his 500x 4/16/2021 $12 calls and purchased an additional 50k shares for a total of 200k shares. Account balance, including cash and realized & unrealized gains, totals ~$34.5M. This reinforces a lot of trader's beliefs that the squeeze has not squoze and that he simply likes the stock.

New SEC Chairman Gary Gensler Confirmed

Gensler, who began his career as a banker at Goldman Sachs is one of the few Wall Street veterans to win the adoration of the left wing of the Democratic Party after he proved willing to take on the financial services industry as chairman of the Commodity Futures Trading Commission, where he helped craft the Dodd-Frank reform legislation and aggressively implemented new rules regulating the derivatives market.

GameStop Announces Early Redemption of Senior Notes

GameStop will retire the remaining of it's debt by April 30, 2020, originally due 2023, using cash on hand. A big part of the bear thesis was that GameStop would default on the senior notes due earlier in 2021 which were paid off March 15, 2021, and that refinanced senior notes due 2023, which will be paid off by EOM, would also not be repaid

Better Markets Files Amicus Brief To Fight Against HFT Abuse

Today’s securities markets are prone to abusive high-frequency trading practices due to their fragmentation, advances in computer trading technology, and current regulations that allow firms to exploit minuscule time delays embedded in the trading and price-quoting process. Citadel and a handful of other HFT firms spend vast sums to acquire sophisticated computer software, gain access to trading data ahead of other market participants, and acquire data feeds that supply them with non-public information. In addition, they pay to attract order flow from other brokers, which fuels their trading strategies. As a result, they enjoy highly profitable advantages over other market participants.

DTC-2021-005 Rules Changes Removed From DTCC Filings Listing

The rules changes that would prevent a share from being lent out multiple times no longer appears on the DTCC filings listings. Emails to the chief legal council were replied with assurances that it was pulled for further technical revisions. Seeing as the big banks have controlling seats at the DTCC's BOD, it is speculated that this rule which would gravely impact the ability of large institutions to naked short would cut off a valuable income stream and/or cause considerable pain for those who have naked shorted.

Ascendiant Capital Downgrades GameStop (GME) to Sell

Ascendiant Capital analyst Edward Woo downgraded GameStop from Hold to Sell with a price target of $10.00 (from $12.00).

Mr. Woo comments "Recent reports by the video game publishers shows that digital revenue is increasing at a fast pace (~90% or more of publishers’ revenues), so concerns are increasing that digital game sales (which GameStop has very low market share) is beginning to be a bigger factor (~70% of a game’s total sales are now full game digital downloads). We remain very concerned about the long term prospects for its video game business especially once hardware sales temper as the installed base matures."

Shares of GameStop closed at $170.26 yesterday.

GameStop Announces 2021 Annual Shareholders Meeting

Chairman Cohen meme provided by u/ButtFarm69The Annual Shareholders Meeting will be held on 6/9/2021.

  • Following the Annual Shareholders Meeting, the Board intends to elect Mr. Cohen as Chairman
  • Following the Annual Shareholders Meeting, all directors will be compensated 100% in equity
  • Following the Annual Shareholders Meeting, individual director compensation will be reduced approximately 28% from the prior year
  • Effective immediately, the Board has appointed Mr. Grube to serve on the Strategic Planning and Capital Allocation Committee

GameStop Nominates Larry Cheng for BOD Election

Larry Cheng is Co-Founder and Managing Partner of Volition Capital, a leading growth equity investment firm based in Boston, Massachusetts and the first investor in Chewy. He has more than two decades of venture capital and growth equity investing experience based on time at Volition Capital, Fidelity Ventures, Battery Ventures, and Bessemer Venture Partners. He presently leads the Internet and Consumer team at Volition, focusing on disruptive companies in e-commerce, internet services, consumer brands, and digital media and gaming. He received his bachelor's degree from Harvard College where he concentrated in Psychology.

GameStop Nominates Yang Xu for BOD Election

Yang Xu is Senior VP of Global Finance and Treasury at The Kraft Heinz Company. She has more than 20yrs of broad experience across the capital markets, finance, strategic planning, transactions and business operations in the U.S., Asia and Europe. Prior to The Kraft Heinz Company, she held roles with Whirlpool Corporation and General Electric Healthcare. She has a bachelor's degree in Finance from Wuhan University, a master's degree in management from the HEC School of Management and a master's in business administration from the London Business School.

Kurt Wolf Won't Stand for BOD Re-Election

On April 5, 2021, Mr. Wolf notified GameStop of his resignation as a member of the BOD, effective immediately. Mr. Wolf's resignation is not the result of any disagreement with the Company or the Board on any matter relating to the Company's operations, policies or practices

Matt Kohr's YouTube Channel Banned, Then Reinstated

After Matt's YouTube channel was banned without prior warning or strikes, his appeal to YouTube was denied. It was thanks to others in the YouTube community that reached out to their contacts at YouTube that Matt's channel was eventually reinstated.

SR-DTC-2021-005 Goes Into Effect

Technical updates into the mechanics of the ledger system for noting when securities are pledged as collateral would prevent shares from being used as collateral multiple times. This would curtail a significant amount of naked shorting.

S&P Upgrades GameStop's CreditWatch Ratings To Positive

Rating agency S&P Global has placed the B- rating of GameStop Corp on CreditWatch Positive after it announced a secondary equity offering of ~3.5 mn shares. Gamestop aims to cash in on the increase in its share prices after the Reddit-driven rally in its shares earlier this year. The sale of shares by the US based video gaming company will infuse adequate liquidity to cover its debt and is expected to lead to a business transformation.

According to S&P "A successful offering would provide additional funds for GameStop to invest in its digital strategy to adapt its business model to evolving market conditions." The rating agency emphasized that the proceeds from the share offering will help Gamestop reinvent its business model.

The sale of the 3.5mn shares which represents ~5% of its outstanding stock could fetch GameStop up to $654mn based on Monday’s closing price of $186.95. Gamestop had also reported a 11% increase in its sales through 9 weeks ended April 3, 2021. While Gamestop stands to benefit from the demand for software and accessories in the near-term, the rating agency took note of the weaker than expected 4Q results and the risks to its strategy as the company transitions to the digital gaming strategies from the physical games.

BofA Securities Reiterates Underperform Rating on GameStop After Dilutive Offering

BofA Securities analyst Curtis Nagle reiterated an Underperform rating and $10.00 price target on GameStop after the company announced that it will be conducting a share offering of <=3.5M shares (~5% dilution). Mr. Nagle stated "We think that GME is still a very long way from executing a turnaround and:

  1. GME's core gaming business is extremely challenged and losing share at a highly concerning rate; and
  2. any progress on transitioning the business (or acquiring new ones) is more than priced into shares, in our view.

In 2020 GME generated EBITDA of $(154)mn. Even if we were to assume an average hardlines EV multiple of 10x (which we view as too generous and compares to GME’s 5yr avg. of ~4x), GME’s current share price implies EBITDA of ~$1.2bn which we don't see as realistic in achieving."

GameStop Announces Preliminary Sales Results for the First Nine Weeks of Fiscal 2021

For the first nine-weeks of fiscal 2021, total global sales increased approximately 11% from the nine-week period ended April 4, 2020 February: the four-week period ended February 27, 2021 total global sales increased approximately 5.3% from the four-week period ended February 29, 2020

GameStop Updates ATM Offering

What was previously a $100M offering of max 3.5M shares (~$28.57/share) is now a $1B offering of max 3.5M shares (~$285.71/share). This will allow GameStop to raise capital whenever it sees fit, including during a short squeeze, to raise funds for accelerating their digital retailer transformation.

r/Superstonk Subscription Balloons to ~113k Apes Overnight

r/GME peaked at ~265k subscribers, lost ~10k subscribers overnight, and nearly half have subscribed to r/Superstonk in lieu of the recent moderator shake-ups. This will later come to be known as "the Second Great Ape Migration", a nod to the mass migration from r/WSB to r/GME during the r/WSB events surrounding u/zjz on Feb 3rd.

Dr. Michael J. Burry Deletes His Twitter Account

Days after warning of the dangers of a pending market crash due to collateral re-user, the SEC paid him a visit. He then tweeted that he was going to take a step back and became cryptic with his messaging. Soon after, he deleted his Twitter altogether.

OCC Amends Liquidating Positions for Suspended Options Clearing Members Process

When an options clearing member is suspended, their current positions are then auctioned off to other OCC members. The proceeds from these auctions are then used to close out their other high risk positions. The OCC-2021-004 rule changes allow for faster liquidation of a suspended Member's assets by allowing more participants at auction

Houston Wade Interview on Chatter's YouTube Channel

One of the best plain-English explanations of the GameStop situation as of the time of the interview. Houston Wade is a Geologist, Astrophysics professor, a current Harvard grad student in History. In the interview he talked all about what he describes as the “baby squeeze” in January, naked shorting, counterfeit shares, the SEC, and the DTCC insurance policy worth $67 trillion.

Reddit r/GME AMA With Alexis Goldstein

A little bit about Mrs Goldstein: Currently work advocating for a safer and fairer economy but started her career on Wall Street. Worked as a programmer at Morgan Stanley in electronic trading, and as a business analyst at Merrill Lynch and Deutsche Bank in equity derivatives.

Recently testified before the House Financial Services Committee in their second hearing about GameStop. You can find her written testimony here.

Also discussed the GameStop situation on Twitch with AOC back in February. Here is a clip of our discussion.

Here are two recent appearances on CNBC and BBC, both discussing GameStop:

Citadel Securities Hires Ex-CFTC Chairman Heath Tarbert as Legal Chief

Mr. Tarbert, the former chairman of the U.S. Commodity Futures Trading Commission, was hired by Citadel as its chief legal officer. Mr. Tarbert led the nation's main derivatives regulator from 2019 until January, when he became a commissioner. He previously served as a senior official in the Treasury Department, and before that led the bank-regulatory practice at law firm Allen & Overy LLP

DTC-2021-005 Rules Changes to DTC Settlement Service Guide

This appears to affect how shares used for options trading are accounted for, and limits the ability to lend out already lent out shares so a share can only be lent once.

u/DeepFuckingValue YOLO Update

DFV sees ~$10.4M in unrealized gains, still holds 100k shares and 500x 4/16/2021 $12 calls. He still has not sold/exercised his 500x soon-expiring 4/16/2021 $12 calls. Account balance, including cash and realized & unrealized gains, totals ~$39.8M

Hedge Fund Working Group Re-Established

United States secretary of the treasury Janet Yellen said she is re-establishing the “Hedge Fund Working Group” for the first time since 2016. “Chairperson Yellen asked interagency staff to assess potential financial stability risks associated with open-end funds, particularly focusing on liquidity risks.”

New Chief Growth Officer Elliott Wilke

Mr. Wilke brings nearly two decades of branding, consumer goods and e-commerce experience to GameStop. He joins from Amazon, where he spent 7yrs in senior roles with Amazon Fresh, Prime Pantry and Worldwide Private Brands. At Proctor & Gamble he spent 10yrs+ in brand management and marketing roles. At GameStop, Mr. Wilke will oversee growth strategies and marketing, with a focus on increasing customer loyalty and growing the reach of Power Up Rewards and Game Informer

New VP of Brand Development Andrea Wolfe

Ms. Wolfe, who previously served as Chewy's Vice President of Marketing, started March 29, 2021. She has held executive and director-level marketing roles at companies such as Outdoorsy, Spreetrail and Whole Foods. In her new role, Ms. Wolfe will help drive branding, content, social media strategy and other digital initiatives

New VP of Merchandising Tom Petersen

Mr. Petersen, who previously served as Chewy's Vice President of Merchandising, started March 29, 2021. He has also held senior marketing and merchandising roles at specialty retailers such as Artenza and Corro. In his new role, Mr. Petersen will help drive vendor relations, product management and related merchandising initiatives

u/atobitt Uncovers Citadel Shorting Bond Market

Citadel have shorted the treasury bond market to oblivion using the repo market. Citadel owns Palafox Trading and uses them to EXCLUSIVELY short & trade treasury securities. Palafox manages one fund for Citadel; Citadel Global Fixed Income Master Fund LTD. Total assets over $123B, 80% are owned by offshore investors in the Cayman Islands. Their reverse repo agreements are ENTIRELY rehypothecated and they CANNOT pay off their own repo agreements until someone pays them, first. The ENTIRE global financial economy is modeled after a fractional reserve system that is beginning to experience THE MOTHER OF ALL MARGIN CALLS. THIS is why the DTC and FICC are requiring an increase in SLR deposits. The madness has officially come full circle.

Immediately in Effect, NSCC-2021-004 Rule Changes to Amend the Recovery & Wind-down Plan Implemented

This rule further helps protect NSCC against solvency issues should a major Member default. It allows them to demand funds from other Members to cover losses. If one large Member drags the ship down, NSCC now takes everyone else down too before NSCC drowns

OBV Indicator Spikes To 2.2B

Screenshot of graph displaying OBV=2.2BPer Investopedia: "Granville believed that volume was the key force behind markets and designed OBV to project when major moves in the markets would occur based on volume changes. In his book, he described the predictions generated by OBV as 'a spring being wound tightly.' He believed that when volume increases sharply without a significant change in the stock's price, the price will eventually jump upward or fall downward."

Reddit r/GME AMA with Better Market's Dennis Kelleher

Mr. Kelleher has almost two decades of experience in D.C., including as a senior staffer in the U.S Senate, and has seen firsthand how Wall Street is able to influence policy-making progress. He and his colleagues at Better Markets work to fight back against Wall Street interests and promote common sense reforms that make our financial markets more transparent and fairer. Their goal is for Wall Street to serve and support Main Street, not be a threat to it. They also want finance to be a wealth generation system, not a wealth extraction mechanism.

GameStop Starts Selling GPUs And Immediately Sells Out

At earnings, CEO George Sherman said they will be "growing our product offerings across PC gaming, computers, monitors, game tables, mobile gaming, and gaming TVs to name only a few." They also produced a new weekly ad that shows RTX 3000 graphics cards, motherboards, power supplies, and PC desktop cases.

u/HeyItsPixeL Harassed

HeyItsPixeL, a prominent r/GME contributor, receives threatening private messages from people. He warns users that he is not a danger to himself and to be suspicious of any claimed self-harm. This is part of concerted efforts to silence prominent buy-and-hold $GME advocates.

NSCC Submits Rule Amendments to Recovery & Wind-Down Plan

NSCC is tightening its rules so that should a Member cause a fat loss, it will force other Members to pick up the tab (more so if they're involved) to protect ongoing NSCC operational requirements

Wedbush Downgrades GameStop to "Underperform"; Valuation Disconnected From Fundamentals

Wedbush analyst Michael Pachter downgraded GameStop from "Neutral" to "Underperform" with a price target of $29.00 (from $16.00).

Mr. Pachter commented, "GameStop is well-positioned to be a primary beneficiary of the new console launches, and we remain quite optimistic that it will return to profitability by FY:21. The high-profile sustained short squeeze seen in recent months, however, has spiked the share price to levels that are completely disconnected from the fundamentals of the business. At the current share price level, we believe that a downgrade of the shares to UNDERPERFORM is warranted."

Shares of GameStop closed at $160.00 yesterday.

Jefferies Raises GameStop Price Target To $175 From $15

Jefferies analyst Stephanie Wissink raised the price target on GameStop to $175.00 (from $15.00) while maintaining a Hold rating.

Ms. Wissink comments "Our thesis is simply that rebalancing sales away from video game software/hardware will deliver superior gross margins. If the company successfully sheds its retail heritage and morphs into a digital commerce," its valuation could rival other purely online businesses.

u/DeepFuckingValue YOLO Update

DFV sees ~$9.1M in unrealized gains disappear, still holds 100k shares and 500x 4/16/2021 $12 calls. He still has not sold/exercised his 500x soon-expiring 4/16/2021 $12 calls after a >30% intraday price drop. Account balance, including cash and realized & unrealized gains, totals ~$29.4M

~113M Shares Phantom Volume at Closing Price

At market close, ~113M share volume at $120.34/share showed on ThinkOrSwim, totalling ~$13.6B

GameStop Announces Early Redemption of Senior Notes

On March 15, 2021, the Company fully redeemed the remaining $73.2 million of its 6.75% senior notes due 2021. A big part of the bear thesis was that GameStop would default on the senior notes due 2021

GameStop Warns Short Sellers In 10-K SEC Filing

"To the extent aggregate short exposure exceeds the number of shares of our Class A Common Stock available for purchase on the open market, investors with short exposure may have to pay a premium to repurchase shares of our Class A Common Stock for delivery to lenders of our Class A Common Stock. Those repurchases may in turn, dramatically increase the price of shares of our Class A Common Stock until additional shares of our Class A Common Stock are available for trading or borrowing. This is often referred to as a “short squeeze.”

A large proportion of our Class A Common Stock has been and may continue to be traded by short sellers which may increase the likelihood that our Class A Common Stock will be the target of a short squeeze. A short squeeze has led and could continue to lead to volatile price movements in shares of our Class A Common Stock that are unrelated or disproportionate to our operating performance or prospects and, once investors purchase the shares of our Class A Common Stock necessary to cover their short positions, the price of our Class A Common Stock may rapidly decline. Stockholders that purchase shares of our Class A Common Stock during a short squeeze may lose a significant portion of their investment."

Chief Customer Officer Frank Hamlin Resigns

An SEC filing in which it confirmed that chief customer officer Frank Hamlin was resigning from the company at the end of this month "with good reason," and as a result is entitled to a severance package including a lump sum payment of $2.06M, and the vesting of equity awards of GameStop stock. Hamlin will receive more than 221k shares that had been time-vested, and could receive almost 145k more that were tied to performance targets.

Loop Capital’s Anthony Chukumba Thinks GameStop Is Overvalued

Loop Capital analyst Anthony Chukumba told CNBC GameStop shares continue to trade at high valuations that aren't justifiable.

"This is not a good quarter," Chukumba said. "I will be listening to how they're going to pull a rabbit out of the hat and turn this into a viable company."

Chukumba said GameStop needed "some magic beans and pixie dust" to help the company going forward. He dropped coverage of the stock in January.

u/HeyItsPixeL Has Account Mass Flagged And Is Automatically Suspended From Reddit

HeyItsPixeL, a prominent r/GME contributor, was suspended from Reddit after being mass reported for fictitious self-harm. This is part of concerted efforts to silence prominent buy-and-hold $GME advocates.

When you tear out a man's tongue, you are not proving him a liar, you're only telling the world that you fear what he might say

u/WardenElite Has Account Mass Flagged And Is Automatically Suspended From Reddit

WardenElite, a prominent r/GME contributor, was suspended from Reddit after being mass reported for fictitious self-harm. This is part of concerted efforts to silence prominent buy-and-hold $GME advocates.

When you tear out a man's tongue, you are not proving him a liar, you're only telling the world that you fear what he might say

Report About Cycling FTDs to Circumvent FTD Regulations

The report goes on to show how cyclical FTDs will have periods of inactivity that will keep decreasing until there is no respite from being forced to cover FTDs using synthetics/shorts.

  1. Market Maker Alpha gives Beta xyz amount of synthetic shares (a power available to market makers)
  2. Beta gives Alpha collateral so that Alpha doesn't get screwed (the collateral is basically the premium Alpha pays to purchase the contracts)
  3. Beta uses those synthetic shares to close out existing FTD positions
  4. Beta writes deep ITM calls (so Alpha knows it's Beta)
  5. Alpha buys the calls and exercises them receiving xyz shares back as IOUs
  6. Now Beta has effectively closed out old FTDs while creating fresh new IOUs that will become FTDs in due time
  7. Repeat

$GME Loses ~43% value in 23 minutes

$GME share price plummeted from $348.50/share to $172/share in ~23 minutes, tripped 6 circuit breakers in 32 minutes. Claims of MarketWatch reporting the drop before the drop occurred made

Open: $269.43, Low: $172.00, High: $348.50, Close: $265.00, Volume: 71,361,900 #$GME

SR-NSCC-2021-003 Rule Change to Revise the Clearing Agency Investment Policy Filed

The goal is to remove the requirement for participants to submit monthly position confirmations and clarify participant obligation to reconcile activity on a regular (read: daily) basis. Previously, Members argued having requirements for daily and monthly obligations was contradictory and thus refused to do them (presumably to hide data/positions).

After A Week Of Silence, MarketWatch Publishes GME Hit Piece As Soon As Price Slightly Declines

After a period of silence from mainstream media as the stock climbed back up from ~$40/share to ~$350, the stock plummeted $100 in a matter of minutes, to ~$200, finishing the day ~$230/share

Second U.S. Government Hearing

The committee on banking, housing, and urban affairs summoned:

  • Professor Gina-Gail S. Fletcher, Professor of Law, Duke University School of Law
  • Ms. Rachel J. Robasciotti, Founder & CEO, Adasina Social Capital
  • Dr. Teresa Ghilarducci, Bernard L. and Irene Schwartz Professor of Economics, The New School
  • The Honorable Michael S. Piwowar, Executive Director, Milken Institute Center for Financial Markets
  • Mr. Andrew N. Vollmer, Senior Affiliated Scholar, Mercatus Center

CNBC Publishes Redacted Second U.S. Government Hearing Video

Dennis M. Kelleher, President and Chief Executive Officer of Better Markets, issued the following statement in response to revelations that CNBC omitted one key part of the recent U.S. House Financial Services Committee (HFSC) hearing on GameStop and related issues. CNBC’s deleted footage included Kelleher’s call for the Financial Stability Oversight Council (FSOC) to examine whether to designate Citadel Securities (Citadel) as systemically important, given the firm’s substantial presence throughout the U.S. equities and options markets. Such a designation, if made, would subject Citadel to substantial additional regulatory scrutiny.

A side-by-side comparison of CNBC’s incomplete version of the hearing and the official complete version released by the U.S. House Financial Services Committee confirms this deletion: Compare the video posted by HFSC (includes Kelleher’s full comments on the need to carefully scrutinize Citadel) with the video posted by CNBC (which abruptly cuts off Kelleher’s comments and inexplicably jumps ahead approximately 10 minutes).

Citadel Issues $600M of Bonds with 3.375% Yield

Bonds with yields this high are usually indicative of poor company performance, where the higher yield is needed to attract investors who would normally pass on such risk

Former Hedge Fund Manager Whitney Tilson Claims GME Is A Dead Cat Bounce

A dead cat bounce is a large, short-lived recovery in a stock that has experienced an extreme decline. Unfortunately, dead cat bounces tend to be bull traps for traders, tricking some buyers into prematurely believing the bottom is in.

“Mark my words: These three stocks will never again reach the highs they hit yesterday and will continue their collapses back to their fair values, which are much lower than today's levels,” Tilson wrote in his daily newsletter on Friday morning.

Millions of ETF Shares Containing $GME Shorted

In an attempt to drive down the price of $GME further while also hiding SI%, ETF's like $XRT which hold millions of shares of $GME are being over-shorted. On this day, $XRT had a Short Interest of 200%. Citadel is an Authorized Participant of $XRT.

FINRA Changes Short Interest Reporting Formula

FINRA changed their short interest figure, which used to be calculated as a percentage of shares outstanding sold short, they now report it as a percentage of the float sold short. Because tradable float is a dynamic subjective calculation, whereas shares outstanding is definitive, expressing short interest as a percentage of float is inaccurate.

CFO Jim Bell Resigns

There is speculation that Mr. Bell was forced out after failing to convince the BOD that Ryan Cohen's vision would not be beneficial to GameStop. Mr. Bell has a history of driving companies into the ground. With the apathetic BOD members ousted, Ryan Cohen is free to move forward with his transformation goals.

GMEDD.com Contributor Rod Alzmann Recovers Twitter Account

Rod Alzmann, a prominent DD writer and contributor to GMEDD.com, was able to recover his Twitter account which apparently had an unauthorized login from Nigeria.

u/DeepFuckingValue YOLO Update, Doubles Shares Position Since U.S. House Committee Hearing

DFV, when prompted by a congressman if he would still buy the stock at ~$40/share, replied "yes" put his money where his mouth was by doubling his share position from 50k to 100k shares. It became the most awarded Reddit post of all time. u/DeepFuckingValue, sees ~$5M in unrealized gains disappear, now holds 100k shares and 500x 4/16/2021 $12 calls. Account balance, including cash and realized & unrealized gains, totals ~$17.4M

U.S. House Committee Summons Citadel, Robinhood, Melvin Capital, Reddit, u/DeepFuckingValue to Hearing

u/DeepFuckingValue had a poster visibly on the wall behind him during the hearing depicting a cat hanging with one paw from a string captioned with Hang in there!The halting of buying of $GME on Jan 28 triggered an investigation of the situation, where retail investors were unfairly prevented access to buy shares on the open market

Interactive Brokers' CEO Thomas Peterffy Warns About Liquidity Issues

Mr Peterffy warns that if hedge funds default then brokers are on the hook for the losses, and that if brokers default clearing houses are on the hook for the losses, but clearing houses were facing liquidity issues and were in a situation that would've led to them also defaulting which would put the market in a state of chaos

Melvin Capital Files 13F Revealing 60k $GME Put Contracts

Reporting up until 12/31/2020, Melvin Capital was betting that GameStop would default on upcoming senior notes maturity date and become insolvent, which would dramatically reduce Melvin's gains tax burden. The 60k put contracts were worth ~$113M

DeepFuckingValue Sued for Securities Fraud Over GameStop Rise

Keith Gill, one of the most influential voices that pushed GameStop on the WallStreetBets Reddit forum, was hit with a lawsuit that accused him of misrepresenting himself as an amateur investor and profiting by artificially inflating the price of the stock.

The proposed class action against Gill, who adopted the YouTube nickname "Roaring Kitty," was filed Tuesday in federal court in Massachusetts. The suit said Gill was actually a licensed securities professional who manipulated the market to profit himself. Gill touted GameStop shares through an extensive social media presence on Youtube, Twitter and Reddit, where he used a more profane alias.

GMEDD.com Contributor Rod Alzmann's Twitter Hacked

A prominent DD writer and contributor to GMEDD.com, Rod Alzmann, was the victim of a Twitter hack. Whomever took control of his account deleted all of his tweets, which been principally advocating for GME fair value. This doesn't align with the "GME is over" narrative creeping into the media.

Users Claim eToro Imposed Unauthorized $GME Sell Limits, Some Orders Triggered

eToro was engaging in Cash-For-Difference trading and not actually purchasing the underlying asset, which backed them into a corner.

Starting January 31 2021, eToro is no longer offering select meme stocks as CFDs but only as the underlying asset (x1 leverage only). eToro stressed it needs to work within the bounds of liquidity available on exchanges on which these stocks are listed. Opening CFD positions for these stocks was made “close only” on Sunday January 31, 2021. ”Close only” means that users cannot add more funds to the existing CFD positions on these stocks.

S3 Partners Changes Formula For Calculating Short Interest

S3 Partners redefined share float to include shares that don't exist (shorted, synthetic shares) in order to claim a lower % of the shorted float. It reduces the traditional SI % float, instead of shares shorted / float, the calculation is now shares shorted / (float + shares shorted). By increasing the denominator when accounting for synthetic shares it lowers the perceived short interest calculated percentage.

Robinhood Gives Employees $40 Doordash Gift Cards For Their Concerns

In the eyes of some employees at Robinhood, the stock trading app lost its way when it decided Thursday to halt the buying of meme stocks such as video game retailer GameStop, which Robinhood customers bought in order to squeeze hedge funds that had bet that those stocks would fall.

Chamath Talks About GameStop, Robinhood, and Citadel

Chamath breaks down liquidity issues surrounding Melvin Capital and Robinhood due to increased margin requirements which may have been pressure applied by Citadel who took up the short side of the trade when they and Point72 bailed out Melvin Capital.

NSCC Waives The Capital Premium Charge For All Clearing Members

While NSCC removed the premium charge, the VaR rate was still 100%, totalling $1.4B (which was only $282M the prior day), which created massive collateral requirements from clearing Members

Robinhood Prohibits Buying of $GME

Due to liquidity issues, Robinhood only allows clients to sell $GME, users report inability to buy $GME

Interactive Brokers Prohibits Buying of $GME Options

Interactive Brokers, in a statement on Thursday, said that as of midday yesterday, it put option trading of video game retailer GameStop (GME) "into liquidation only due to the extraordinary volatility in the markets."

That means customers cannot currently place new options trades on those names, a representative said via email. Interactive Brokers also said long positions on those companies — or a bet a stock will rise — will require 100% margin, and short positions will require 300% margin "until further notice."

"We do not believe this situation will subside until the exchanges and regulators halt or put certain symbols into liquidation only," the company said. "We will continue to monitor market conditions and may add or remove symbols as may be warranted."

Several Customers Report $GME Shares Forcibly Sold by Robinhood

Many reports of shares purchased with cash and not on margin, and not held as options, were liquidated without consent at the lowest market price available which was far removed from the average market price

Interactive Brokers' CEO Thomas Peterffy Warns About Market Nearly Collapsing

Mr. Peterffy warns that due to the buying craze of meme stocks, clearing houses were exposed to double-digit billions of losses and due to concerns of potential defaults and market integrity concerns, restricted buying

Nasdaq CEO Friedman Says The Exchange Will Halt Trading In A Stock If They Link Unusual Activity To Social Media Chatter

In what is perceived as an attack on free markets, many view a trading halt by an exchange to afford hedge funds time to figure a way out of their short positions during a squeeze as an affront to the system, that the exchanges will protect the large players at all costs.

Discord Helps New WSB Server With Moderation Duties

Discord is now helping the r/WallStreetBets team moderate its new server. The company originally banned the group yesterday due to "hateful and discriminatory content" and revealed it had sent repeated warnings to the team managing the community. Discord staff are actively working with the server's team to help with moderation. At least one Discord staffer, who is now in the new WallStreetBets server, is also helping with infrastructure problems related to the rapid growth the community is experiencing.

GMO Trust Head of Asset Allocation Ben Inker Interviewed, Claims Retail Will Lose Life Savings

After claiming on Bloomberg Television that retail investors will lose their life savings and that retail instead of short sellers will be left holding the bag, it is revealed on April 30th GMO incurred heavy losses by betting against $GME, and was removed as a NSCC Participant.

Jon Stewart Creates Twitter Account And Makes First Tweet

/r/wallstreetbets Temporarily Private

Reddit's popular sub WSB temporarily went private as a massive influx of millions of new subscribers overwhelmed moderators and their tools. There were so many new posts & comments that they maxed out Reddit's API throughput and thus temporarily closed the sub until the tools could catch up.

Discord Bans WSB Server

Discord says it did not ban the WallStreetBets server for financial fraud — rather, it was banned because it continued to allow "hateful and discriminatory content after repeated warnings."

$GME Trips NYSE Circuit Breaker Nine Times During Trading

GameStop surged as much as 145% from $96.73 to $159.18 Monday morning, before sinking below Friday’s close, only to bounce back up again to close Monday at $76.79, up 18%.

The volatility prompted the New York Stock Exchange to briefly halt trading nine times. About 175.5M shares changed hands Monday, the second-largest one-day total on record, according to Dow Jones Market Data. That compares with the 30-day average of ~29.8M shares.

Citadel & Point72 Bail Out Melvin Capital With $2.75B

Citadel and Point72 are investing $2.75B in Melvin Capital, an emergency influx of cash that is expected to stabilize what was otherwise one of the top performing funds on Wall Street. This emergency capital influx was a sign of how close Melvin was to being margin called.

Alan Attal Appointed to BOD

From 2017-2018, Mr. Attal served as the CMO of Chewy and oversaw an annual acquisition budget of more than $300M which was allocated to broadcast, direct mail and digital advertising and engagement initiatives. From 2011-2017, he served as the company’s COOr and oversaw its expansion from three people to more than 10,000 employees and $3 billion in revenues


S&P Global Ratings Downgrades GameStop to BB- From B+, Outlook Negative

  • "GameStop recently reported weak operating performance as it continues to face risks from the elongation in the launch of new consoles, increasing competitive challenges, and long-term structural technological shifts."
  • "We lowered the ratings on the company, including the issuer credit rating, to 'B+' from 'BB-', on both near-term performance volatility and long-term competitive uncertainties."
  • "The negative outlook reflects our expectation that intense competition from online and traditional retailers, economic uncertainty, and the lengthening of the console cycle could result in further deterioration for operating prospects."

GameStop Reports Q3 2020 Earnings

GameStop posted Q3 2020 net sales of $1B (down 30% YOY) and a net loss of $19M (compared to a net loss of $83M for Q3 2019). GameStop attributes the losses console cycle end (limited hardware and accessory availability), various game delays, and an 11% reduction in its store base (partially offset by recaptured sales online and at other locations)

GameStop Closes 462 Stores YTD

GameStop continued to transform by closing 74 stores in Q3 2020, bringing the YTD closures to 462 while transferring sales to online & neighboring locations whilst reducing store operating costs

u/CPTHubbard Posts Pro-GME DD on r/WallStreetBets

One of the more detailed DDs posted to WSB proved to also be one of the more effective ones. This DD made the case that Ryan Cohen has a vision and the resources needed to transform GameStop, even if it involves a hostile takeover. It ultimately helped sway many to invest in GameStop, amongst other quality DDs posted to WSB around this time.

SEC Extends Enforcement Grace Period of Rule 15c3-3

As of April 22, 2021, broker-dealers will be required to bring themselves into compliance margin requirements. Rule 15C3-3 established the requirement to keep enough cash and securities in a segregated account that will cover a portion of the costs of a major market move

SEC Signals Pending Enforcement of Rule 15c3-3

This no-action memo allows affected participants to provide feedback to the SEC prior to enforcement. Rule 15C3-3 established the requirement to keep enough cash and securities in a segregated account that will cover a portion of the costs of a major market move

Credit Suisse Maintains Sell Rating For GameStop

Credit Suisse analyst Seth Sigman maintained a Sell rating on GameStop and maintained a price target of $3.50. The company's shares closed last Thursday at $6.62. The word on The Street in general, suggests a Hold analyst consensus rating for GameStop with a $5.50 average price target.

Moody's Upgrades GameStop's CFR to B3, Changes Outlook to Stable

Moody's upgraded the ratings of GameStop following the announcement that approximately 52% of the existing senior unsecured noteholders have agreed to exchange those notes for new secured notes due 2023. Ratings upgraded include the company's Corporate Family Rating to B3 from Caa1, Probability of Default Rating to B3-PD from Caa1-PD, senior unsecured rating to Caa1 from Caa2, and senior secured rating to B2 from B3. The company's Speculative Grade Liquidity rating is unchanged at SGL-3. The outlook is stable. This concludes the review for upgrade that was initiated on June 5, 2020.

Kurt Wolf Elected to BOD

Mr. Wolf is the Managing Member and CIO of Hestia Capital. Previously, Mr. Wolf worked in a variety of financial, investing and operating roles, at First Q Capital, and as a co-Founding Partner at Lemhi Ventures. Earlier in his career, Mr. Wolf worked as a consultant both with Deloitte Consulting and The Boston Consulting Group. Mr. Wolf earned a MBA from Stanford and a BA in Economics and Mathematics from Carleton. Mr. Wolf joined the board in 2020 and serves as a member of the Nominating and Corporate Governance Committee.

Paul Evans Elected to BOD

Mr. Evans is a Senior Managing Director at Dillon Kane Group. Additionally, Mr. Evans is a Board Director at Hill International. Prior to this, Mr. Evans served in a variety of senior executive roles at MYR Group. Earlier in his career, Mr. Evans held a number of executive management positions at several energy-related businesses. Mr. Evans is a CPA and a member of the American Institute of Certified Public Accountants. Mr. Evans received a B.B.A in Accounting from Stephen F. Austin State University and a Masters of International Management from Thunderbird School of Global Management. Mr. Evans joined the board in 2020 and serves as a member of the Audit Committee.

Daniel DeMatteo Retires From GameStop BOD

"I would also like to thank Daniel DeMatteo for his years of service as Executive Chairman, former CEO and co-founder. Dan’s passion for our business inspired us to grow from a small software retailer to the world's largest video game omni-channel retailer offering the best selection of new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats," said Kathy Vrabeck, Chair of the Board.

Credit Suisse Lowers Price Target To $3.50

Credit Suisse analyst Seth Sigman maintained a Sell rating on GameStop and set a price target of $3.50. The company's shares closed last Wednesday at $5.35. The word on The Street in general, suggests a Moderate Sell with an average price target of $4.08.

Moody's Places GameStop's Ratings Under Review

Moody's placed the ratings of GameStop on review for upgrade, including its Caa1 Corporate Family Rating (CFR), Caa1-PD Probability of Default Rating, and Caa2 senior unsecured rating. Moody's also assigned a B3 rating to GameStop's proposed senior secured notes and placed the rating on review for upgrade. The company's Speculative Grade Liquidity rating remains SGL-3.

"The review will focus on the company's success in refinancing its existing senior unsecured notes which mature in March 2021 and the final terms of the exchange, including the amount of unsecured notes exchanged," stated Pete Trombetta, Assistant Vice President at Moody's. GameStop is offering the holders of the existing 6.75% senior notes due 2021 to exchange those notes for 10% senior secured notes due March 2023.

GameStop BOD Urges Shareholders to Re-Elect BOD Members

Feeling threatened by Hestia & Permit's desires to turn around the company and force the BOD to act in the best interest of the long-term future of the company, they release a statement urging shareholders to vote to maintain the status-quo

Moody's Downgrades GameStop's CFR to Caa1, Changes Outlook to Negative

Moody's downgraded the ratings of GameStop including its Corporate Family Rating to Caa1 from B2, Probability of Default Rating to Caa1-PD from B2-PD, and 6.75% senior unsecured note rating to Caa2 from B3. At the same time, the company's Speculative Grade Liquidity rating was downgraded to SGL-3 from SGL-2. The outlook was also changed to negative from stable.

"The downgrade reflects Moody's expectation that given our forecast of lower earnings in 2020 compared to 2019, GameStop's EBIT/interest expense will be below 1.0x, which despite the expected benefit of the launch of new consoles could make it difficult for GameStop to refinance its unsecured notes that mature in March 2021 on economic terms," stated Pete Trombetta, AVP-Analyst at Moody's.

Credit downgrades make it more difficult to raise money directly from institutional investors and with disadvantageous terms.

S&P Global Ratings Downgrades GameStop Local Currency LT Credit Rating to B- From B+

The outlook is developing.

Wedbush Maintains Hold Rating For GameStop, Price Target of $4.25

Michael Pachter from Wedbush maintained a Hold rating on GameStop with a price target of $4.25. $GME shares closed last Monday at $4.41. The word on The Street in general, suggests a Moderate Sell analyst consensus rating for GameStop with a $3.63 average price target.

Benchmark Maintains GameStop Sell Rating and Price Target of $3.00

“We do not believe GME qualifies as an essential retailer,” wrote Benchmark Co. analyst Mike Hickey, who added that “recent media attention will likely accelerate potential closures” at the company. He reiterated his sell rating and $3 price target, and forecast “continued weakness over the next several quarters.”

GameStop Claims To Be Essential Retail During Global Pandemic

The struggling video game retail chain GameStop told all of its stores this afternoon to stay open even in the event of state or city lockdowns to protect against the covid-19 pandemic, emphasizing that it is “essential retail” alongside groceries and pharmacies and should therefore be exempt from enforced closures, a contentious claim.

“Due to the products we carry that enable and enhance our customers’ experience in working from home, we believe GameStop is classified as essential retail and therefore is able to remain open during this time,” the retailer said in a memo to staff, obtained by Kotaku.

Moody's Downgrades GameStop's CFR to B2

Moody's downgraded GameStop's Corporate Family Rating to B2 from Ba2, Probability of Default Rating to B2-PD from Ba2-PD, and 6.75% senior unsecured notes to B3 from Ba2. The company's Speculative Grade Liquidity rating was downgraded to SGL-2 from SGL-1. The outlook is stable.

Credit downgrades make it more difficult to raise money directly from institutional investors and with disadvantageous terms.

Wedbush Maintains Buy Rating For GameStop, Price Target of $8.00

In a report released today, Michael Pachter from Wedbush reiterated a Buy rating on GameStop, with a price target of $8.00. $GME shares closed last Monday at $5.43, close to its 52-week low of $3.15. Currently, the analyst consensus on GameStop is a Hold with an average price target of $5.36.


Credit Suisse Reduces Price Target to $5.00

Credit Suisse analyst Seth Sigman maintained a Sell rating on GameStop today and set a new price target of $5.00 from $6.00. The company's shares closed last Monday at $5.56. The word on The Street in general, suggests a Hold analyst consensus rating for GameStop with a $5.38 average price target.

22M Shares Buy-Back

GameStop paid ~$115.7M to repurchase 22.6M shares at $5.11/share, bringing the YTD repurchase activity to $178.6 million for 34.6 million shares, or 34% of the shares outstanding, at an average price of $5.14 per share. GameStop has 67.8M shares outstanding as of Q3 2019 end

GameStop Reports Q2 2019 Earnings

Shares of GameStop Corp. plunged on Wednesday as the embattled video game retailer turns to closing stores to offset declining sales.

The Grapevine, Texas, company plans to close between 180 and 200 of its roughly 5,700 stores globally by the end of its 2019 fiscal year, company finance chief James Bell said on a conference call with analysts Tuesday evening. The closures are part of a broader review of the company’s store footprint that could lead it to shutter more locations.

The company’s stock, down more than 10% Wednesday, has fallen about 63% this year and roughly 71% over the past 12 months.

ThinkGeek Closes Website, Moves Products Into GameStop Stores

ThinkGeek shutters gaming and pop culture clothing, accessory, and toy website and moves the bulk of its business into GameStop locations & website. 40+ physical ThinkGeek locations in the US will remain open after July 02, 2019

GameStop BOD Elects To End Quarterly Dividends

The BOD elected to eliminate the company's quarterly dividend, effective immediately, in an effort to strengthen the company's balance sheet and provide increased financial flexibility and optionality. Eliminating the company's quarterly common stock dividend will preserve ~$157M annually, based on 2018 dividends paid, and enable the company to further reduce its outstanding debt. As of June 3, 2019, the company has reduced the total amount outstanding on its 2021 unsecured notes by ~$39M, leaving ~$436M outstanding.

Jim Bell Appointed Executive VP & CFO

Mr. Bell most recently served as CFO of Wok Holdings, Inc., the parent company of P.F. Changs, Pei Wei and True Food Kitchen restaurants, where he successfully designed and led the company's overall strategic plan and omni-channel digital transformation that resulted in over $50 million in annual revenue growth over two years.
Jim also has a history of running companies into the ground.

Chris Homeister Appointed Executive VP & Chief Merchandising Officer

Mr. Homeister most recently served as President, CEO and a member of the Board of Directors of The Tile Shop, a publicly traded specialty retailer, where he grew the company in terms of product assortment, online and mobile capabilities, store count, employees, revenue and EBITDA. Earlier in his career, he held a number of senior roles at Best Buy, including SVP, Digital Merchandising & Strategic Planning and General Manager and SVP, Entertainment Business Group, where he oversaw the product categories including video games, movies, music, and eReaders and launched Best Buy's video game trade-in business

Moody's Downgrades GameStop's CFR to Ba2, Changes Outlook to Negative

Moody's downgraded the ratings of GameStop's Corporate Family Rating to Ba2 from Ba1, Probability of Default Rating to Ba2-PD from Ba1-PD, and $475 million 6.75% senior unsecured notes to Ba2 from Ba1. The company's SGL-1 Speculative Grade Liquidity rating was affirmed, and the outlook was changed to negative from stable.

Credit downgrades make it more difficult to raise money directly from institutional from investors and with disadvantageous terms.

Richard Evans Presents ETF Short Interest and Failures-to-Deliver: Naked Short Selling or Operational Shorting?

Richard Evans, an associate professor of business administration at the University of Virginia Darden School of Business, presents his findings after over a year of detailed research on how naked shorting can be hidden through the clever use of Authorized Participants of ETFs.

Raul Fernandez Appointed To BOD

Mr. Fernandez was a candidate recommended by Hestia & Permit. Raul serves as Vice Chairman and Owner of Monumental Sports & Entertainment, a private partnership that co-owns the NBA's Washington Wizards, the NHL's 2018 Stanley Cup Champion Washington Capitals, the WNBA's Washington Mystics, Team Liquid eSports and Wizards District Gaming NBA 2K, as well as co-owns and operates Capital One Arena in Washington, D.C. He also serves as Special Advisor and Limited Partner to General Atlantic Partners, a growth equity firm with more than $31 billion under management

Lizabeth Dunn Appointed To BOD

Ms. Dunn was a candidate recommended by Hestia & Permit. Lizabeth is the Founder and CEO of Pro4ma Inc, an information technology services consulting firm that provides cloud-based data forecasting and predictive analytics tools to retailers. She also is the Founder and CEO of Talmage Advisers, a retail and branded consumer products consulting firm that provides a full range of services across brand strategy, pricing analysis, financial benchmarking and transactional due diligence.

S&P Global Ratings Downgrades GameStop to BB- From BB

"GameStop Corp. recently reported weak operating performance as it continues to face competitive challenges and structural shifts away from physical video games toward digital delivery, leading to a decline in sales of new physical games and software as well as preowned video games."

  • "We believe the company's competitive position has deteriorated, a trend we expect to continue. We lowered the issuer credit rating to 'BB-' from 'BB'."
  • "We also lowered our issue-level rating on the company's first-lien debt to 'BB+' from 'BBB-' and our issue-level rating on the unsecured notes to 'BB-' from 'BB'. All recovery ratings are unchanged."
  • "The negative outlook reflects our expectation that intense competition from online and traditional retailers will lead to further pressure on GameStop's margin in the coming 12 months."

GameStop Reports Q4 2018 Earnings, Reports Largest Loss To-Date

GameStop posts $673m full-year loss and acknowledges "the challenges facing our pre-owned video game business" and a need to change its business model. GameStop expects its sales will drop 5% to 10% in 2019 compared to last year, the company announced in its earnings report. News of the predicted drop, coupled with the company’s report of a drop in new hardware and new software sales in its fourth quarter, was followed by a precipitous drop in its stock, down 13% to $8.82 the following day.

GameStop Announces Move Into Esports

The company's first step in this shift includes partnering esports group Complexity Gaming to open what it calls the most advanced esports facility in the country at The Star in Frisco, Texas. The company is also teaming up with a number of other esports brands and companies to host gaming clinics, "Overwatch" watch parties, and collegiate esports tournaments.

New CEO George Sherman Hired

Mr. Sherman comes from top leadership roles at Advance Auto Parts, Best Buy, Target, and Home Depot. He will also join the GameStop board of directors.

GME Retires 2019 Senior Notes

GameStop has determined that part of its capital allocation plan for 2019 is to immediately provide notice of redemption in full of the $350 million in unsecured senior notes scheduled to mature in October 2019

Hestia Capital's Threat to GameStop

Hestia suggests GameStop cut costs, reduce exec compensation, perform share buy-back to combat short sellers, and focus on core video game business. They point out that the BOD members hold few shares and are not incentivized for the success of GameStop

GameStop Stops Trying to Sell Itself

Reports of an imminent GameStop acquisition will go unrealized, as the retailer announced that it is no longer pursuing a sale of the company. The "Board has now terminated efforts to pursue a sale of the company due to the lack of available financing on terms that would be commercially acceptable to a prospective acquiror," the company explained.

$GME crashes to 14-year low from the previous close of $15.50 to $11.22.

GameStop Sells Spring Mobile

GameStop completed the previously disclosed sale of its Spring Mobile business to Prime Communications for $700 million. Spring Mobile owns and operates 1,284 AT&T wireless stores.

Wedbush analyst Michael Pachter said, "I estimate they spent about $1.5 billion buying all these stores — $700 million in cash and $800 million in debt — and ended up selling for $700 million" The company "went from no debt and generating about $400 million in cash, to $800 million in debt and generating $300 million in cash," he said.


New BOD member Carrie Teffner Appointed

Carrie brings 30 years of financial leadership and experience and will join the audit committee. Carrie has served as Executive VP and CFO of Crocs since 2015. Prior to joining Crocs, she served as Executive VP and CFO at PetSmart and, before that, at Weber-Stephen Products. Prior to those roles, she served as Senior VP and CFO of Timberland

GameStop Looking To Be Acquired

GameStop was in "exploratory discussions" with third parties regarding a potential deal. GameStop had struggled with leadership, while its core business has faced declining sales for the past several years as more people download games directly to consoles, computers and mobile devices.
In May, GameStop named Shane Kim, a member of its board since 2011 and a former exec at Microsoft, as interim chief executive. Former CEO Michael Mauler left the post in May after only three months. Days after naming Mr. Mauler as CEO in February, the company fired its COO and its executive VP of strategic business and brand development.

New Interim CEO Shane Kim Appointed

Kim will be the company's fourth CEO since the late J. Paul Raines left the position in November 2017, after overseeing the retailer for eight years. Kim was general manager of Microsoft Game Studios and corporate vice president for Microsoft's Interactive Entertainment Business before leaving the company in 2010. Since 2011, Kim has been a member of GameStop's board of directors.

PayPal Study Names GameStop Top Physical Retailer

Steam is a popular storefront among Millennials globally (31%), the study found, while 45% of U.S. respondents picked GameStop as their favorite. Physical, established retailers are still revered by a significant amount of people despite the growth of digital gaming, Paypal said. This indicates that gamers still enjoy physical copies of their games in addition to newer download options.

New Interim CEO Daniel A. DeMatteo Appointed

Mr. DeMatteo, one of the company's co-founders, will continue to serve as executive chairman and director. In the past, Mr. DeMatteo has served as the company's CEO and in a variety of board and executive roles since November 1996


New Interim CEO Daniel A. DeMatteo Appointed

Mr. DeMatteo, one of the company's co-founders, will continue to serve as executive chairman and director. In the past, Mr. DeMatteo has served as the company's CEO and in a variety of board and executive roles since November 1996

New Senior VP of Collectibles Janet Bareis Hired

Ms. Bareis has 20+ years of senior management experience leading marketing and merchandising. She spent 11 years with Walmart as VP and general manager of private brands with responsibility for product development, brand acquisitions and management, licensing negotiation and packaging. Prior to Walmart, Ms. Bareis spent 14yrs in national sales, sport and entertainment marketing and brand innovation leadership positions with Frito-Lay

Wedbush Rates GameStop as "Outperform"

"The Wedbush View: We expect shares to trade at a compressed EPS multiple until GameStop slows the decline in its core video game business." Wedbush lowered their 12mo outlook from $28 to $25.

GameStop Reports Q4 2016 Earnings

Total global sales decreased 13.6% to $3.05 billion, while consolidated comparable store sales declined 16.3% (-20.8% in the U.S. and -4.6% internationally). The fourth quarter was significantly impacted by weak sales of certain AAA titles and aggressive console promotions by other retailers on Thanksgiving Day and Black Friday. As a result, new hardware sales declined 29.1% and new software sales declined by 19.3%

GME Quarterly Dividend Declared

The Board declared a quarterly cash dividend of $0.38 per common share payable on March 28, 2017 to shareholders of record as of the close of business on March 14, 2017


Co-Founder & BOD Member Richard Fontaine Retires

Richard, along with Dan DeMatteo and Len Riggio, founded in 1996 what would later become GameStop. He served as CEO from 1996-2002 and took on the role of chairman of the board from 2002-2008. From 2008-201 he served as executive chairman and eventually chairman international from 2010-2013. Led by Richard's ent