this post was submitted on 28 Feb 2024
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WhyDRS

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Community to discuss the WhyDRS.org project and resources, and how to spread DRS advocacy and information to all investors for all securities.

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In response to: https://www.reddit.com/r/Superstonk/comments/1b1x3rg/researchers_show_reddit_users_caused_the_famous/

Options caused the January 2021 price action on GME. Derivatives are the casino. There is more money in playing options than there is in the underlying stock that those options are being played over.

Infinite liquidity destabilizes the stock market because it breaks the fundamental value that stock has. People should be able to buy up all the shares of a stock, and that should cause the price of that stock to increase in value. But when market makes like shitadel are allowed to sell more of a stock than what was issued by the company in the name of liquidity, the stock market becomes detached from reality and it's impossible for a price discovery to occur.

Retail has done nothing wrong. In fact what we've been doing is noble. Direct registration is putting our money into the real underlying economy. Booked shares are the only thing in the stock market that has real intrinsic value, and for the past 3 years we've been watching as retail DRS's more and more stock, and the value of that stock continually drops. It shouldn't work like this, but it does because our market is heavily manipulated by the so-called "market makers".

This whole time we've been waiting for a short squeeze, which by all rights should happen but isn't because our stock market is completely detached from reality. Infinite liquidity, dark pools, swaps, derivatives are all parts of a casino and market makers are the house rigging everything against you. I would go so far as to even say this is harming our economy. Why is it so hard to start a new business? Why do executives of mega corporations give themselves huge bonuses and pay their workers so little? Why do hedge funds make huge gains but retail investors always lose? Why isn't our market working for everyone?

Because hedge funds turned our stock market into a casino. Do you want to make our stock market work for everyone? Then there needs to be an end to liquidity. Options need to be illegal.

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[–] [email protected] 1 points 8 months ago

Lately I'm thinking we could hit 100% DRS and shitadel would continue to sell GME shares in the name of liquidity.

I think the only way to actually punish the short sellers is a cash dividend. Every quarter that Gamestop earns profit should be a quarter that Gamestop pays out a cash dividend. It can be small, just a portion of those profits. But if Gamestop keeps earning profit and keeps paying out cash dividends, that's the only thing that I think will cause the shorts to close and walk away.

No dividend = shorts roll over. More and more shorts get hidden in swaps and dark pools. The naked shorts just keep piling up by the hundreds of billions and nothing ever makes them close.

The alphabet agencies won't do anything. As far as they're concerned the infinite liquidity created by market makers is completely legal. Congress won't intervene because they're just as crooked as the hedge funds and make huge amounts of money from insider trading and lobbying from many of the institutions who are rigging our market.

Gamestop's executive board is the only group of people on this planet who can trigger the MOASS. They can do it by issuing dividends. Just my 2 cents.