I can’t believe I haven’t seen this yet here. I’m seeing people say RC buying in again caused this… ?
That was not a RC buy, not DFV, not anyone buying who wasn’t forced.
What that was, was the DTCC computers liquidating a short hedge fund and buying back their shorts. That’s why you saw ALL meme tickers pump, at the same exact moment. Even NON-meme tickers pumped. Look at amazon and meta at the same time, they shot up as well.
The hedge fund (not sure which) could not meet their margin call probably two days ago, when the market was tanking. Our hedgie friends, like citadel etc, knew this fund failed their call and immediately started shorting the whole basket HARD for two days, knowing liquidation was coming. And this was it, market opened and the DTCC computers sprung into action – forcing the failed fund to buy back all shorts.
A smaller player blew up this morning, and we got a taste of what MOASS would look like. Imagine “cascading liquidations” one after another, as more and more funds blow up. Expect halts like that all the way up, for days.
edit: To all the people that it’s saying this is just “trust me bro”. Look at the meme basket tickers from market open and the pumps, and explain to me why they would all violently blow upwards? could not be a willing buy-in (buying this way sets your money on fire for no reason) and would not be ETF covering (again, buying a way that pumps all meme tickers by 20%+ in mere minutes sets your money on fire).
edit2: to everyone saying other tickers should’ve halted as well. well, they would’ve except they have much more liquidity. our favorite stock, our beloved gme, has no liquidity, and therefore halts first and hardest.
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The week of 3/25 was when insiders bought more shares. The shares where fulfilled with calls.
- T+2 was 3/29
- T+1 when it was bought in from MM was 3/30
- T+5 when MM had to buy in was April 6 with ETFs
- C+35 from 4/6 is 5/11
Usually they buy in After Hours/Pre-market. But they had so many that needed to be fulfilled they failed to deliver. So today’s run was from the forced buy in. As it was fulfilled during market hours Market Makers are now back on the hook for these shares. ?