00:28Hello friends, welcome back to our channel.
00:31At the beginning of the story we see a man named Cath Gill.
01:00There is a name online known as Roaring Kitty and there is also a forum on YouTube and Reddit called Roaring Kitty.
01:06is r wall street bets in short w esby there his username is deepforting valu name a bit weird
01:13but it is
01:14Everything goes on like this there. Now the idea of the insect is that it is very dependent on the shares of one company.
01:19He is more bullish, meaning he feels that the share price of this company will go up a lot and that company
01:25This is GameStop, the GameStop where people buy computers.
01:29We used to buy items, video game CDs, mouse and many more. Nowadays we do everything online.
01:36So the company's financials are not good, many financial experts on Wall Street think this.
01:42GameStop is a
01:56You sell them and when the share price falls, you buy the same number of shares at a cheaper price.
02:01You return the money to the person from whom you borrowed it. The difference between selling and buying is
02:07Your profits are from these big hedge funds on GameStop.
02:10He was not doing it, he was 100% sure that GameStop's stock was going to go to zero, but how much
02:16He did not believe that the changes taking place in GameStop's financials and its leadership, such as Chui
02:22Involvement of Ryan Cohn, founder of
02:34It means that people are not understanding its real value, the biggest thing he could see was that so many
02:40All the big investors have shorted GameStop in case the share price ever starts going up.
02:46Shot sellers can be badly trapped
03:02All this is connected. He was not doing it alone and quietly, but with all his analysis, all his holdings, everything.
03:08in a live stream on his YouTube channel and with regular updates on Reddit's Wall Street Bets forum and
03:15Onla
03:31He is putting his efforts in supporting Keet, whom everyone was considering as a sinking ship.
03:36She does, but there is a little fear in her mind, after all, this is the stock market, a small insect.
03:42Brother Kevin, who is a bit weird, is on social media.
03:45But he keeps making useless videos, he too had invested in GMII on the advice of Keet, well now we
03:51Let's look at an Arab man named Gabe Plotkin, one of the big men on Wall Street.
03:56Joe Melvin Capital, a very large hedge fund
03:59The boss of the hedge fund is Hedge Fund. Hedge fund means a company that takes money from rich people or institutions and invests it in the market.
04:06She invests to maximize profits. Her company traded GameStop on a massive scale.
04:12shot
04:12He laughs just hearing the name of GameStop and he is trying to fool small investors like Keith.
04:18The Investor understands that we are shown a man named Ken Griffin who runs a company called Citadel.
04:25The owner is Citidal, a very big financier.
04:39He is the head of management and is also a big player in the market with all three businesses interconnected.
04:45They also have good friendships with Citadel and have invested 0.72 million rupees in Milvin Capital.
04:51Even in the time of pandemic COVID-19, it is fun.
04:54They are making it while people outside the world are suffering and losing their jobs, but their wealth keeps increasing.
05:00They believe that the market works according to them, where on one hand they see billionaires like Gab.
05:06On the other hand, in the movie we get some
05:08Showing small retail investors like us, the first one we see is a nurse named Jennifer.
05:14She is also a single mother and is working on the front lines during Covid and is very stressed.
05:19And he has a lot of loans on him, he just needs a little...
05:37A boy named Kus, who works at the same store as Game Stop, quits his job.
05:42He is not happy because his salary is very low and his boss also troubles him a lot. He sees
05:48that something strange is happening with his company's stock and
06:04Harmony and RiRi are two college students who are best friends, or maybe couples, burdened with student loans.
06:10They too see the hype around GameStop online and think that by investing in it, they might make a profit.
06:17my brother
06:33The interface of Vaijubhat and Vlat Tenev Robin Hood App is very user friendly and easy to use due to which
06:39Most people prefer to use Robin Hood. During an interview, Vlat Tenev says that
06:45We our's
06:59If any big fund house or company is associated with it, then by mistake Baiju Bhat mentioned Ken Griffin.
07:05The name of the company Citadel is mentioned, but then Vlat Tenev interrupts him and denies it.
07:11Does
07:12Well, all these people are living different lives in different cities but one thing connects them.
07:18Relying on the Internet, the Wall Street Bets forum, and Keith's analysis
07:23They see that Keitt is not only bullish on GME but also wants to invest all his money in his stocks.
07:29He is playing a game
07:30He updates daily, whether the market goes up or down, this increases people's trust in him.
07:37WSB Forum is a strange place, people here talk about finance but in a very different way.
07:43There are a lot of memes and inside jokes and the language is quite rough, but it's all about fun and frolic.
07:49There is also a serious undercurrent at the rear
07:52A lot of people here are angry about the 2008 financial crisis, when the big banks messed up, but
07:59They got a bailout and the common man had to suffer the consequences.
08:03They believe the system is rigged, meaning it's rigged in favor of the wealthy, and GameStop is their game.
08:09This is an opportunity to take revenge on the system, to teach a lesson to the hedge funds that shorted GameStop.
08:15trying to destroy them
08:18Now, a few months later, the real buzz is building, with Keith's regular posts and videos and the growing enthusiasm of the WSB community.
08:25seems to work
08:26GameStop's share price slowly begins to rise.
08:30The share which was worth a few dollars starts growing rapidly at first, but then suddenly it starts growing rapidly.
08:36Now it goes up to $50, $60, $70, $100
08:41Kate's $50,000 investment quickly turns into millions of dollars, and then a million dollars.
08:46Of
08:47He still posts screenshots of his account every day, and people go crazy seeing them.
08:52He has now become a hero on WSB, people start following everything he says.
08:57Now people like Jennifer, Marcos, Harmony and Riri start making money too
09:03The value of their small investments starts increasing.
09:06Jennifer feels that now she will be able to repay her debt.
09:09Marcos finds hope in leaving his unfulfilling job
09:13Harmony and Riri dream of saying goodbye to their student loans
09:17There is an atmosphere of happiness amongst all.
09:20Gabe, on the other hand, sees that GME stock is initially going up instead of down.
09:26He considers this to be a temporary enthusiasm of retail traders.
09:28Which will cool down in a few days and the share will come back down
09:32He takes another short position
09:35But the share does not even come down.
09:37It goes up steadily, to $200, $300, and at one point even over $400.
09:43Now Gabe's condition starts deteriorating.
09:45His company is losing billions of dollars every day.
09:48The stock was going up so fast
09:51Meaning the share was being short squeezed
09:53Or it can be said that short covering was taking place in the share.
09:56If we say short squeeze or short covering in simple language then
09:59Those who shorted the shares
10:00When the share price starts increasing so rapidly
10:03So their losses also increase very rapidly.
10:06So they start exiting their positions.
10:10So that you can limit your losses
10:12But when so many short sellers together
10:14Exit your position
10:17So the buying pressure in the market increases further.
10:19It becomes a cycle
10:21And due to which the share price goes up even faster.
10:24So this is called short squeeze or short covering.
10:29Now hedge funds were trapped in
10:31The WSB people were taking advantage of this.
10:33They were buying shares
10:34And were holding it, due to which short sellers were getting the shares at very high prices.
10:38Panic grips Gabe's office.
10:40He's yelling on the phone
10:41His employees are upset
10:43Everyone's nights have been ruined
10:45He doesn't understand what is happening
10:48A small video game retailer's share
10:50ruining his multi-billion dollar company
10:53Now when Gabe's wife Yara Plotkin comes to know about this
10:57She tells Gabe to ask his friends for help.
11:00So Gabe asks his friends Ken and Steve for help to save his company.
11:05Then both of them together started Melvin Capital
11:20Due to the increasing trading volume of
11:22They will have to deposit three billion dollars as a deposit
11:24Otherwise they will shut down the Robinhood app.
11:27Then Vlad Tenev tells them that I will try talking to Citadel founder Ken Griffin once.
11:32And here we learn that Ken Griffin has also invested in Robinhood.
11:36Now the Robinhood app disables the buy button for GameStop shares.
11:42Retail traders were no longer able to buy GameStop shares.
11:45Now this news is healthy towards the fire
11:47And an atmosphere of panic is created among the people.
11:50And people start selling shares in large quantities.
11:54GameStop shares had previously reached $483.
11:57It suddenly dropped to $140.
12:00The reason for this was the Robinhood app
12:02And due to which the retail trader had to suffer huge losses.
12:07People thought that hedge funds were making money as long as
12:09Everything was fine until they started incurring losses.
12:12So they stepped in here.
12:14They feel that Robinhood has taken this step
12:16Ken Griffin's company has been taken under pressure from Citadel
12:19Now Robinhood CEO Vlad Tenev
12:22gives people a statement that they
12:25So stop buying angel
12:26Because their clearing house is much bigger than them.
12:28were asking for collateral which at that time
12:30They did not have it and so they
12:32I had to stop buying but
12:34Common investors should read this statement
12:36I can't believe they think that
12:38They have been cheated
12:40People who raise the slogan of free market
12:42Now they are controlling the market.
12:44Against Robinhood on social media
12:46Anger erupts and
12:47The hashtag boycott Robinhood starts trending.
12:50On the other hand, in all this commotion
12:52Keith remained calm when GME shares were falling
12:54He did not sell his shares
12:56Instead, he posted another update.
12:58in which he showed that he
13:00Bought more shares of GME
13:02The price had fallen, it was just for him
13:04It was not about making money
13:06GameStop fundamentals were still trusted
13:09This action of his WSB
13:10He has an even bigger presence in the community
13:12It makes people heroes
13:14Looks like this guy is real
13:16Sticking to its principles
13:17But now Keet also gets into trouble.
13:20This whole matter becomes so big.
13:22that the US Congress holds hearings on
13:24A committee sits
13:26Which tries to understand the whole GameStop case
13:29Along with Keat in the hearing
13:31Add to this all the investors and the CEO of Robin Hood
13:34Valad Tenev is called
13:36This hearing is telecast live on TV.
13:38Keith attends this hearing.
13:40From his basement where he makes videos
13:43He answers the committee's questions very calmly and calmly.
13:47He says he only shared his analysis.
13:51He believed in GameStop's fundamentals.
13:53He says it's not a heist fund.
13:56He is a common man who invests using publicly available information
14:01People like his approach a lot.
14:05Gabe Plotken looks very defensive in virtual hearings
14:08He admits he underestimated GameStop's potential
14:11He defends short selling.
14:13Ken Griffin also attends virtual hearings
14:16He denies any collusion.
14:18He says Citadel didn't pressure Robin Hood
14:23To stop buying
14:24He also defends Robin Hood's PFOF model.
14:28Vlad Tenev gives the same explanation again
14:31that buying was halted due to Risk Management and Clearing House capital requirements
14:36He gets asked a lot of questions
14:38Now, a few days later, we see that Kate made a lot of money by investing in GME.
14:43Millions of dollars
14:44But he didn't make any major changes to his lifestyle.
14:47He still lives in the same house and probably doesn't make YouTube videos anymore, he's taking a break
14:52What happened to the investigations that were going on against him?
14:56This isn't clearly shown in the film, but he escapes a lot of trouble.
15:01Gabe Plotkin suffered such heavy losses that Melvin Capital folded shortly afterward.
15:05Gabe suffered a great personal loss
15:08Ken Griffin and Steve Cohn
15:11His funds bailed out Melvin.
15:13But he also made a lot of money from GME.
15:15Because there was a lot of volatility in the market.
15:17His power and influence remained the same.
15:20The Robin Hood app received a lot of negative publicity.
15:23faced lawsuits
15:25and his reputation was tarnished
15:26But the company continued
15:28Vlad Tenev remained CIO
15:30Jennifer made some money from GME
15:32With this he reduced his loan a little.
15:34But she didn't become rich.
15:36She is still struggling in her life.
15:38But it is in a slightly better condition
15:41Marcos also made money from GME
15:43And finally quit his GameStop job
15:45He's glad he got out of that place.
15:49Harmony and Riri both made a little money too
15:51But his student loan was not completely cleared.
15:53He is still hopeful for the future
15:56on April 16, 2021
15:58Keith at 4:53 p.m.
16:01Posted your last balance sheet
16:03His net worth at that time
16:05was $34 million
16:06Keith has since distanced himself from public life.
16:09But it was started
16:11This movement is still alive.
16:13Now Wall Street keeps scouring the internet
16:15So that any short squeeze information
16:17could already meet and this is where the movie ends
16:20Thanks for staying connected
16:21If you liked the video
16:23So don't forget to like, share and subscribe if you're new.
16:25See you next time with another exciting story.
Comments