First things first: if this is the first time you are hearing about Gamestop, in relation to Stocks, or – and I canât believe Iâd ever have to type this – Elon Musk, please understand: you are already too late. Youâre worse than a spectator: Youâre watching a re-run of the match, mate. Youâre playing Fortnite in 2021 with a default character. Youâre downloading Pokemon Go and heading out to catch a âPicahinâ. Youâre googling âwhat is Bitcoin?â Youâre learning how to floss. Youâre late.
And I donât even blame you. In this hellscape, everythingâs old news come evening, even market-devouring events. Dude, four Wednesdays ago (or as I call them, The 60s) there was an insurrection in the US. A coup. Orchestrated by the man in power. And thatâs just madting. Any Nigerian would tell you A) you need the military, B) you stage a coup to remove the man in charge, lol, and C) read A, again. But you know what Americans are like when they remake foreign drama.
Anyway, slowpoke: The US Stock Market had a once in a lifetime proper shit-up, (and where were you? Lol, at home, playing Fortnite for the first time, like me) which on the surface looked like poor people stuck an unwashed finger in the eye of the wealthy, proper 300-Spartan like, but in reality⌠it kinda was? but Elon Musk was involved, and probably others like him, so not? Confused? Well, itâs confusing, but donât worry, Iâm going to explain everything, using simple consumer products we all can understand. Like a Playstation 5.
You know what a Playstation 5 is, donât you: Itâs the newest Playstation. Fortnite machine. FIFA box. CODpod, and I donât mean fish. Itâs sold out everywhere: even if you wanted one, fuck you: Sony donât want your stupid money. Theyâre selling on eBay for ÂŁ1000, right now, if you fancy, though.
Now, letâs pretend you do have a PS5.
Enter, me, Hedge Fund is my name. I ask to âborrowâ your PS5 for a night. Pls pls pls, I say, I really want to play Demon’s souls (Ed: Thatâs how itâs spelt, yeah, leave it). Iâll give it back tomorrow. Hell, Iâll even give you a ÂŁ100 âborrowing feeâ, keep you sweet, yeah.
Because youâre an idiot, and those are the market rules, you give me your PS5. I then sell your PS5 off on eBay for ÂŁ1000.
Unbeknownst to you, I actually have some inside knowledge that Sony are about to put out more PS5 stock later that night, hundreds of thousands more. Or maybe I put out an article in the Daily Mail saying PS5s explode like Samsung phones or something. The point is, the price of PS5 drops all the way down to ÂŁ300. Come the morning, I buy a new, cheap PS5 and give it to you.
I have made ÂŁ600 in profit (ÂŁ1000, minus the 300 for the new PS5 and the ÂŁ100 borrowing fee. See? I told you you were stupid). This is known as Short Selling, and like most shenanigans perpetrated by rich white people. It is legal, happens all the time, is probably happening right now. Meanwhile, youâre at home, playing fortnite on your cheaper PS5, flossing.
Now hereâs the bit that makes last Wednesday the aforementioned shit-up.
Now, letâs say you have some friend, whose called Reddit. Reddit found out I borrowed your PS5. Reddit knows I want to short-sell you for a profit, and Reddit doesnât like me much, so Reddit gets all his mates around (theyâre all also called Reddit) and they buy every PS5 available. That sends demand through the roof, and now PS5s cost ÂŁ2000 per unit. To make things worse, one of the Reddits is mates with Elon Musk, so Elon Musk goes on twitter and tells everybody to go buy PS5s right that minute. So now PS5s cost about ÂŁ5000 a pop.
So, not only do I have to buy a PS5 for FIVE TIMES WHAT IâD INITIALLY SOLD FOR, I have to give that PS5 I bought, to you. Dassit. Thatâs this week in a nutshell. Except swap you for Gamestop, PS5 for Gamestop Stocks, and swap ÂŁ5000 for, and breathe before you read, OVER 100 BILLION DOLLARS AS OF WEDNESDAYâS END. But you can leave Elon Musk in there, though. He did what he did IRL. This is called A Short Squeeze and it is also very legal.
Oh, I wish it ended there, but it didno. To continue this analogy even though itâs collapsing under the absurdity of January itself: imagine PS5 prices still rising, and most of the Reddits were buying PS5s on a PS5 buying app called Robinhood, which advertised itself as an app âfor the peopleâ, except it was actually owned by my uncle, and my uncle is in charge of my bank account, and the price of PS5s are going so high, itâs going to bankrupt me and him, so he force-deletes the app off every app store and stops further orders for PS5. Oh, and even though, sure, a lot of Reddits are buying PS5s are regular folk like you and me, but there are also a lot of other, wealthy interests who are using this as a cover to take down one of their PS5 buying rivals. Like that dude who invested 53k and made 33 million. Some of them are also called Hedge Fund.
Confused? Doesnât matter, mate. George Clooney is gonna make a movie about it, call it Oceans 1337. Theyâll get Margot Robbie to explain it all for you, from a bathtub. Youâll watch it on 4K via your Netflix account. And you probably get the Official video game for your PS5. Instead of investing in Dogecoin, you plumb.
Whatâs Dogecoin? Ok: imagine itâs 2000 and you heard of a thing called BitcoinâŚ.
Joshua Idehen