Depending on how you evaluate the GameStop issue, where big small investors have made Wall Street $ 6 billion poorer, you see Elon Musk as either a hero or a villain. The notorious businessman from the financial sector is now being assigned an important role in return.
David Einhorn, Founder of Greenlight Capital Hedge Fund, Accuses Tesla President And Announces HimselfTechnokingMusk, in a new newsletter for his investors, “poured fuel on fire” at the crucial moment when the stock market began to ignite because of GameStop.
Einhorn sees Elon Musk and social investor Chamath Palihabitiya as the catalysts for accelerating the short squeeze, who “really put oil on fire” with their tweets and TV appearances.
As a reminder: Small investors have agreed to buy shares in video game retailer GameStop on Reddit Affiliate Forum r / Wallstreetbets. Previously, securities have come under pressure from profit-making hedge funds. When retail investors bought it at the same time, the stock rose dramatically and hedge funds had to sell their short positions to prevent losses. As a result, Atkie’s price continued to rise, and a so-called “squeeze” occurred, that is, a sudden decrease.
“We want to note that the TV appearances and tweets made by Shamath Palihabitiya and Elon Musk at a critical point in time have really poured fuel into the greater Middle East pressure fires, which is further destabilizing,” says the hedge fund manager. Insider Markets Writes.
In fact, the musk was “Short pressure“GameStop’s share appears to have continued fueling, because when GME suddenly spiked 91% on January 26th, the link from r / Wallstreetbets posted on Twitter and its ‘Gamestonk !!’ meme” That was kind of a Forrest battle cry.
Over the next 24 hours, GME stock soared an additional 134%, rising from $ 147 to $ 347. By Jan.28, security was able to climb to a new record high of $ 483, which is a whopping 18.693% increase over the price level nine months ago.
Social investor Palihapitiya once again gave his support to retail investors who caused a price explosion on January 27 when He said in an interview with CNBCThe GameStop case is a sign that the little guy is rebelling against the big boys on Wall Street.
A circumstance that appears to be causing Einhorn to fuss, because the hedge fund manager fears there is now “some kind of anarchy” in society, because the case would have shown that the regulatory authorities were ultimately powerless. Accordingly, for people like Elon Musk, “no other rules apply.”
Rather, he sees the situation as if the police authorities have made budget cuts: “The people who demanded and imposed, for whatever political motives, budget cuts in the police, have now weakened the regulatory authorities and rendered them almost impotent.”
A reading that may simply be marked by a fear of losing strength, because case watchers attest that the price increase and its consequences are merely the result of the “free market”, which hedge fund managers such as Einhorn usually lead to questionable business practices to legitimize.
In the short squeeze of GameStop, only retail investors used the current market mechanisms. Meanwhile, cryptocurrencies are also increasingly used for ‘Power transducer“To keep moving forward.
However, the ‘arsonist’ Musk sees himself under similar criticism here, because it is said that the progressive entrepreneur has had a major influence on the rapid developments in Bitcoin prices with his tweets (BTC) And Dogecoin (dog) Taking. So the legal experts had the car maker Already warnedThat the US Securities and Exchange Commission can initiate an investigation.