BREAKING 🚨: How corrupt is the United States? The day after the Justice Department launched an investigation into Wall Street short sellers the largest document storage facility, TD Ameritrade Bartlett Warehouse, went up in flames. They hauled the evidence away ON FIRE in direct violation of OSHA safety requirements. 60 hedge funds were to undergo investigations for manipulative short selling. Authorities concluded that a “falling shelf” took out the entire building’s sprinkler system that was located on the roof.
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The facility was a newer facility outfitted with state of the art fire prevention technology.
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Hedge funds have been under heavy scrutiny from retail investors.
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More specifically from the AMC and GME community after the ‘meme stock’ frenzy early last year, 2021
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Hedge funds have been able to suppress the share price of both these stocks through predatorial short-selling strategies.
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In a Bloomberg exclusive, Gary Gensler states 90%-95% or retail market trades do not go through the lit exchange, but rather through dark pools.
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This happened on February 4th 2022. Just like everything with out government absolutely NOTHING has come from the investigation. No charges. No stop to the blatant naked short selling taking place on a daily basis robbing investors.
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The primary offender of naked shorting of course is Citadel, owned by Ken Griffin. Griffin is Ron DeSantis’s MEGADONOR and #WEF member.
"GameStop is not profitable"
makes GameStop profitable
"revenue is still going down"
makes revenue go up
"customers want graded trading cards"
sells graded trading cards
"pay package too high"
Ryan Cohen withdraws pay package proposal
"neither serious or attractive"
Ryan Cohen commits $500M of his own money
ACTIONS > WORDS
🔥
$GME $EBAY
Ryan Cohen is playing chess and until you realize this nothing will make sense.
The $EBAY proposal was the spearhead. Half cash, half stock. Some might even say dilution.
To block the acquisition, $GME needs to be priced low - requiring more stock to finance the deal.
Enter… the buyback + Q1 earnings announcement.
This is the curveball.
To prevent the buybacks, price must be high. To prevent the $EBAY acquisition, price must be low.
This pits two sides of the trade against each other.
In the end, Ryan and shareholders are rewarded - regardless of the outcome.
Anyways, whats an exit strategy?
The XRT DOOM LOOP
If you want to understand the real dynamic of GameStop acquiring eBay, you have to look at the ETF basket they are both trapped in.
1. The "Basket" Paradox
For years, hedge funds and market makers have used ETFs like XRT for "operational shorting". Instead of shorting GME directly (which is expensive and risky), they exploit the ETF creation and redemption process to short the entire XRT basket and strip out the stocks they want to keep.
This allowed them to synthetically dump massive selling pressure onto GameStop while hiding the true size of their short position inside the ETF wrapper.
But here is the problem: eBay is one of the top holdings in that exact same basket.
2. The Arbitrage Nightmare
Remember the structure of GME’s $56B proposal? 50% Cash / 50% GME Stock.
Because GME is using its own equity to buy eBay, the stock prices of GME and eBay are now mathematically linked.
3. The Forced Reconciliation
When the merger completes, anyone who is short XRT owes the lender the exact equivalent of that eBay payout ("half cash, half stock").
For the shorts they hedged: Their long eBay position converts to GME shares, which they hand over to the XRT lender. These balance out.
For the millions of synthetic/naked shorts: They don't have enough long eBay shares to cover the difference in GME shares. But they still owe the XRT lender the distribution payment.
Because they owe the lender GameStop shares to settle the eBay portion of the XRT ETF, the short sellers will be forced to go onto the open market and BUY GameStop shares to deliver them.
4. The Ultimate Bear Trap
This means the acquisition is a forced share recall disguised as a merger.
By targeting the largest, most fundamentally cash-flowing asset inside the very ETF basket used to short the company, the structure of the merger forces short sellers to fund their own demise.
They used XRT as a weapon against retail. Now, RC is using it to swallow eBay whole.
$GME $EBAY $XRT
🚨 Here's something wild: right when Roaring Kitty got hacked, GameStop spiked and Berkshire dipped at basically the exact same time!
It's one more piece of proof that the toxic swap is real! $BRK is straight-up inversely correlated with $GME 🤯
What happened this week with $GME wasn’t random. It was a trap built from scratch.
Ryan Cohen launches a $55.5B offer for eBay at $125/share, half cash half stock. Structurally impossible to accept. The goal was never to buy eBay. The goal was to get merger arbitrage funds to short GME automatically, which is exactly what they do mechanically on every cash+stock deal.
Then Monday night, three things happen in perfect sequence. Roaring Kitty “returns” after 16 months, GME spikes 13% after hours, algorithms and retail pile in. Posts get deleted, “hack” narrative drops, algorithms reverse and short brutally. Immediately after, RC files with the SEC to increase authorized shares from 1 billion to 2.5 billion, feeding the dilution fear narrative and pushing shorts to add even more.
Today eBay formally rejects the offer.
Now you have three separate short cohorts trapped simultaneously. Merger arb funds who must cover because the deal is dead. Legacy shorts exposed for years. New shorts who piled in Monday night on the dilution narrative.
All of them need to buy.
The timing is unpredictable. The structure isn’t. This is the most dangerous setup for GME shorts since January 2021.
See you at the end of July 😈🎩
So Ryan Cohen, in-between buying the billion dollar eBay position, decides to re-file Teddy trademarks from 2022 using his activist law firm Olshan & Wolosky..
.. IYKYK 🦋
@sierrastrades I will be dead & gone, my children can decide what to do with my GME shares. No price target over here. For those that want or need to sell, wait until they are on TV blaming us for what is happening in the markets, then hold a little longer
OH SHIT
TEDDY Holdings LLC which Ryan Cohen has registered as a Bank entity in Delaware just filed these trademarks 5 days ago
US Trademark Class 102 refers to the Insurance and Financial Services category under the legacy U.S. classification system. This classification historically grouped services related to banking, insurance, brokerage, and financial consulting.
PUSH IT RYAN 🚀