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if you've been out of the loop for the last few days then you've missed the latest and the best david and goliath story of recent time we've seen retail traders take it right to wall street take the fight right to wall street and beat them at their own game almost bankrupting them and definitely making them cry to the wall street overlords and the government for protection now in this video i'm going to break down what happened break down who the players are how this all went down i'm going to explain what delta and gamma what the squeeze was and what this means for the markets right now and of course moving forward what this means for us and our investments moving forward so let's go all right if you're new to the channel my name is mark moss i like to talk about financial markets money protecting our wealth because we are going into what i call the final wealth transfer and if you want to have options for yourself and your family then it's important for you to take responsibility for yourself which of course you're doing by watching this video all right now today we are talking about the way retail traders have battled with wall street and basically brought them to their knees and and i said crying and i almost really mean crying they've lost over five billion dollars five billion dollars just this month and they've done that through the game stock stock symbol gmd but look um this is nothing new right i mean for perspective since money markets have been around they've been manipulated right we know that we know that money has been manipulated you know basically since the beginning of time since goldsmiths were putting gold coins together they started making them less and less pure as a matter of fact the banking system has been so manipulated that over a hundred years ago henry ford famously said that if the people knew how the banking system worked there'd be a revolution overnight so this is nothing new they've been doing it for a long time and of course wall street always manipulates the markets right they're moving in they're taking huge positions they're not telling what they're doing they're doing shorts we're gonna get into that but we know that the banks are constantly getting fined for this we know that jp morgan has recently settled the largest fine in history for manipulating markets so we know they do this all the time but of course it's okay if they do that but let's talk about this move specifically so um this happened with a squeeze i'm gonna explain what the squeeze was and how it worked but basically it started with a short and so whenever you want to short a company you're betting that it's going down right you're selling it short so i think the stock is going to drop and i'm going to do that now a lot of times this is done maliciously and so companies would establish a giant short position and then start trying to release news about the company or do something to cause it to come down now this is nothing new most people know who george soros is maybe from the political side but he is also one of the most successful investors in history and really what put him on the map was he broke the bank he broke the bank he shorted the pound and he broke the peg i think he made a billion dollars in a single day by doing this and so there's lots of reasons to short the market short different companies of course the cliche on wall street is that wall street works on the balance of greed and fear right so we want greed like we need to want to go make the money we need that motivation but at the same time we're supposed to have fear that we could lose and so the balance between wanting to get ahead but also fearing to lose it all is typically what keeps things in check but if you haven't noticed those checks and balances have been thrown out the window especially since in 2008 the financial system made all these bets on the market which i'm not going to go into but they made all these bets on the market and they lost right and they lost big but instead of them actually losing big what happened the government bailed them out of course it wasn't the government it was the taxpayers so they were able to benefit from the greed but they didn't have any fear and it's only gotten worse and lately we've seen you know the bailouts get worse and worse and lately we've been seeing greed been overrun by fear now there is a new emotional driver that's in the market right now and it really started after 2008 after this happened we saw occupy wall street and really it's grown into a point right now where we've seen this emotional driver really anger and rage i mean we've seen you know from years decades of generational injustice massive amounts of corruption and unfairness and so basically the battle line was drawn and that's we're going to talk about so the battle line was drawn over a company called gamestop symbol gmd and basically they're a video game retailer right they have about 5 000 stores mostly in the u.s north america but about throughout the world 5 000 stores and lately they've been struggling right i mean they're an old business model most like blockbuster movies right and so most of that has moved online but there's still a traditional brick and mortar business and so their model hasn't modernized and so they've been struggling with that and so what happened is they got caught in a short and a gamma squeeze all right so i'm gonna explain what a shorting gamma squeeze is okay so the battle is on one side we had melvin capital and they established a massive short position about 55 million dollars and they tried to do a short squeeze and so basically what that means is they pile on all these shorts and they're basically betting that the company will go down like i said a lot of times they'll even start putting news and press and stuff like that out there to really even force that down so when the price moves down they make money that's the short squeeze all right but on the other side of the of the battle line was the reddit forum specifically wall street bets now wall street bets has about 2 million subscribers and they're on the other side and they're what we call a gamma squeeze and so if melvin capital is betting that the market's going down squeezing it trying to push it down doing everything they can to push it down while on the other side reddit they're trying to push it up the gamma squeeze and so how they do that is they use call options and they're using call options to push the price of the stock back up and what happens is when they're buying a call option someone has to sell it to you right and so what you do is you pay a little bit of a premium you don't have to pay for the whole stock you pay a little bit of the stock but what happens is if it goes up in value then they have to they have to buy and deliver to you all right so you have market makers that are in the middle and the market makers are the ones that are basically facilitating this bet so they're going to take your little bit of a premium and then they're going to have to go buy that stock and deliver it to you now they have to assess their own risk exposure right so if they take a bunch of little premiums but then they have to deliver all that stock they could lose a bunch of money and so what they do in order to hedge this risk in order to not have that much risk exposure when the market maker sells you the option they typically so they take your little bit of a premium they'll typically go into the market and buy some of that stock the underlying stock that way if they have to deliver a bunch of it to you they have some of it right there all right now the amount of the stock that they decide to buy is based on what we call the delta and the delta is basically a ratio of how much the option price moves relative to the amount of money that's in the stock that's the delta and so they have to assess their own risk they have to figure out how much they want to do but the gamma is the rate of change of the delta of the option so those are the two things as the delta and the gamma start to rise the market maker gets more and more nervous because he has more and more and more risk exposure and so what are they going to do they're going to hedge that risk so of course they're going to go buy more stock to hedge the risk of the option and this becomes somewhat of a self-fulfilling prophecy because then they have to go buy more stock to hedge the risk of the option they're buying more they don't you know if the option has to get exercise and they have to deliver that then they want to hedge that and so as they do that it pushes the price of the stock up even more which means that they get more nervous they have to go buy more stock which means the price goes up even more and on and on and on like i said a self-fulfilling prophecy so that is the war we have the market makers that are purchasing the stock now they're purchasing a lot of this gme stock to hedge their positions and when they do that like i said it drives the price of it up and the delta and the gamma call options went up now so far in this battle the short sellers have been losing as a matter of fact they've been losing really really big and they've lost more than 5 billion dollars this month now some of the players like i mentioned we have melvin capital on one side they had about a 55 million dollar short position and that was the short squeeze and then we had the reddit founder reddit forum as well but we've had other people that have gotten involved in this so we had elon musk that came out and kind of showed a little bit of support tweeting about it and i think that um gave some of the reddit forum members a little bit more boldness and they jumped in more we saw chamath he came in got involved even mark cuban started tweeting about it saying he loved loved and loved this and then surprisingly somebody i almost never could agree with we saw aoc even come out in support of these people doing it but of course wall street's not going to take this laying down right they're fine if they're the ones doing the manipulation but if you try it no no no no it's not for the plebs and so wall street started fighting back um because the reddit was winning the war so what did what did wall street do well they do what they always do they went and got bailed out of course right so melvin was on the on the verge of going bankrupt and they had to go get bailed out by citadel and .72 to the tune of three billion dollars they started with a 55 million dollar short and they kept piling in more money to protect that short so as the price they were betting to go down as the price was going up they were losing more money so they keep pouring more money in and they went to their wall street overlords begging to get bailed out like they always do three billion dollars but it wasn't enough they had to keep going so of course they recruited the rest of their friends who are these friends i'm talking about well the stock is traded on the nasdaq exchange that's where most tech stocks are traded and so nasdaq came out and said we're going to shut down trading we're going to start monitoring all this social media and if we notice any type of communication and weird training activity we're going to just shut it down you're not going to be allowed to trade it as a matter of fact we've seen td ameritrade we've seen robin hood that have completely shut down where you're not even able to buy that stock anymore then that wasn't enough we saw reddit and discord start taking action as a matter of fact discord shut them down and said that they were violating hate speech now the only hate speech that i saw was that wall street hates losing money and i suppose that's enough but this is a very dangerous precedent i believe we'll see more and more things being shut down censored justified for hate speech of course that's not enough then the sec got involved securities exchange commission they came in they said that they're going to look into this right they're going to look in they're going to start dishing out damage so you see they went and got bailed out and then they use all these corporations and government entities to enforce their will of course then they want to get the media on their side they got cnbc going on tv today talking about how this isn't this isn't safe a lot of these people could lose money and the government needs to step in to protect them and so the government should be protecting them and not allowing them to invest their money i mean that makes sense right i mean i guess if we just put people in a cage they'll be pretty protected but already investors aren't able to take advantage of pre-ipo deals you have to be accredited so of course the insiders get all the good deals when it goes to public finally the average public can buy them and then they get dumped on over and over and over again so these rules that are meant to protect you only damage you even more and only create the divide between income inequality even more and more and of course if you're paying attention this is a massive double standard right when wall street manipulates the markets it's all good right but when it happens against them they get mad and not only do they get mad they leverage the war against you now like i said george soros famously broke the bank a billion dollars in a day and it was okay for him it was okay for him but it's not okay for you but personally for my for me i love it i love to see people fighting back raging against the financial machine that's what i like to say but wall street and the fed they got a lot of money so it is a dangerous battle um you know we have the reddit founders or the reddit uh four members that are pushing the price up but wall street you can just go get billions of dollars of more money and so you have to be careful i guess like any battle right you have to be you have to be careful you could lose it all and so while i love the fight i'm definitely paying attention i love to report about it you want to be careful if you're getting involved in this fight understand what it is that you're doing because i think it is just getting started the battle is picking up as a matter of fact they're talking about going after the silver market next and that has massive implications if you think that the shorts were big against gamestop now moved on to amc things like that wait till you see what the shorts are on the silver market i mean why is silver the same price as it was decades ago silver is the most manipulated asset and they say they're coming after that next which of course is really good for our gold and silver positions so let's stay tuned and watch i'll be reporting as more information comes out and that's what i got for you today all right give me a thumbs up on this video if you like it if you don't like this video give me a thumbs down but tell me why leave me a comment and let me know what it is that you don't like about the video alright that's what i got for you today to your success i'm out