I love how Reddit (and HN) enable fast sharing, fact checking of information and lifting ideas.
When it comes to increase luck surface I think Clubhouse maybe will become one of the most important platforms.
GME case seems to exploit the possibility for “short attack” by flipping the table into a infinite price increase, because the hedge funds accidentally created more fake shares that there is shares in existence and now have to by back.
Short attack = Using the possibility brokers have to artificial creating fake shares to drive down the price, in combination with shorting stocks for earning money.
Hedge Funds managers have infinite resources and are working with Data Firms to prevent this from getting out of control again. These firms will use AI to scout social media platforms chatter and report back in real time what stocks are gaining momentum with retail investors.
I'm actually not super bullish on clubhouse. I'm sure they'll find some success but to call it something that will become one of the most important platforms, I don't see it. And perhaps I'll be proven wrong in the next decade on this.
I've recently started using twitter again (after initially using it in 2010/2011) and I feel that there's so much self promotion all the time disguised at knowledge sharing. It also seems like everyone (most people) have a podcast, a newsletter, a youtube channel, etc. I understand that on a surface level people are doing this to increase their 'surface area' but there's just too much and while I'm sure it does a some/a lot of good for the people putting it out there, most of it just seems like noise to me. So that's my reasoning to think that clubhouse won't really become as meaningful as you - it just adds more noise. Sure I can hangout in this room or listen to some folks talk about x/y/z topic, etc. but honestly I feel that after some time people will realize that their time could be better spent.
Dang I totally feel you on the whole self promotion thing and for me, it happened with Medium.
Used to love reading essays all the time but now all the titles tend towards click bait and every essay seems to begin or end with them pitching their newsletter/podcast/etc. and that ends up coloring my whole impression of what I just read.
Not too sure about the "fact" side of things. But the Internet has created opportunities for all sorts of people to get together faster than ever for all sorts of things.
You don't need >100% short interest for a shorted stock to go to infinity. A single share can do that. If I own all the shares, and you borrowed a single share and sold it back to me... well, good luck. Also these sort of attacks aren't really new. Short squeeze has happened before and various other similar ideas (attacking someone with leveraged positions or otherwise risky positions, including currencies). The interesting bit here is IMO the way these people, at least temporarily, acted together. Also the way the hedge funds couldn't grok that like they surely would if they were under attack from a more standard player.
When it comes to increase luck surface I think Clubhouse maybe will become one of the most important platforms.
GME case seems to exploit the possibility for “short attack” by flipping the table into a infinite price increase, because the hedge funds accidentally created more fake shares that there is shares in existence and now have to by back.
Short attack = Using the possibility brokers have to artificial creating fake shares to drive down the price, in combination with shorting stocks for earning money.
More detailed explanation: https://seekingalpha.com/instablog/11442671-gerald-klein/309...
The combination of Clubhouse and Reddit will probably be one of the most important “inventions” this decade. Where GME could wake up everyone?