Super Duper MOASS Recap: A complete recap of the entire story of GME from start to today.
I’m writing this for all the new apes who come here without knowing how we got here or where to begin reading about the terms we use and the events that have already unfolded up until now. So, over the course of this post, I intend to give my best recap of the timeline that has led us to the current day, I certainly will not be covering everything, and apologize for any missing pieces of major information.
So with that being said, let’s get started
0. Where do we begin?
It’s hard to pick a point to begin at because the circumstances that are in place to make what’s happening even possible can go as far back as to the 2008 financial crisis. However, I think it’s best to start with the stories of two men. These two men being
Ryan Cohen – co-founder of Chewy as well as a GameStop investor and current chairman
Keith Gill – know as u/deepfuckingvalue here on Reddit, he was one of the very first people to truly see the potential in GameStop, and would be the main protagonist in the beginning of GameStop’s story
Now starting with those two men, let’s start from the beginning of their stories
- September 8th, 2019
As early as 2019, u/deepfuckingvalue (also know as DFV for short) was posting GameStop YOLO position updates on the subreddit (I apparently cant say the name of this sub, but will just call it BSW) .
These early post were not received well, as most comments were outright calling him stupid for taking such a bullish position in what most saw as a dying brick and mortar.
Despite receiving mostly negative feedback, DFV continued to post updates to his GME position. Starting with 50k and gradually adding more over time.
Like so many other companies, GameStop was hit hard by the Coronavirus. It was forced to shut down many of it locations, some of which did not recover.
This was widely believed by most on wall street to be the death blow to GameStop, something from which the company would never recover from and it showed in the stock price. Losing a third of its value in January of 2020 alone. However, DFV continued to update his GameStop YOLO position.
In September of 2020, Ryan Cohen, who had just sold his company Chewy for $3 billion dollars the previous month, took a stake of roughly 10% in GameStop, for an average price per share of around $6
GameStop (aka GME) would only rally from here.
- The beginning of January 2021
The first big day of January would come on the 13th, GameStop would soar from $20.42 to $31.40 at close for a +57.39% gain on the day. This run was contributed by reignited hope in Ryan Cohen’s plans to transform the company and a new catalyst called the “short squeeze”.
Let’s break this down.
A short is when an investor borrows a share of a company then don’t own, to sell on the open market. They hope after selling this borrowed share, the stock price falls so they can repurchase the share to return to the lender and pocket the difference.
However, if these “short sellers” as they are called, were to borrow shares, sell them on the market, and then the stock price rose, they would have to buy the stock at a higher price, and pay the difference out of their own pocket, and since there’s theoretically no limit how high a stock can go, there’s theoretically no limit on how much money they can loss.
Now that we know what a short is, a short squeeze, is when many shares are taken to short a stock, then said stock soars, and those short sellers are then forced to buy back the stock at a higher price, triggering more shorts to have to buy back the stock at a higher price, creating a loop that pushes the stock higher and higher and higher.
- January 22nd, 2021
January 22nd, 2021 would mark the beginning of a short squeeze of such importance, nothing like it had been seen since 2008.
GameStop opened the day at $42.59 and closed at $65.01 for a gain of 51.08% on the day. This would be due to a double frenzy of shorts trying to buy shares back to cover their positions, and retail investors (average citizens who buy stocks) jumping on the stock looking to make a quick profit off the soaring stock price.
Another reason the stock was soaring so much, so fast, was due to the fact that GameStop had an astonishing 138% of its float sold short.
Let’s break some of those terms down to be more easily explained
a float refers to regular amount of shares a company has issued to the public that are available for investors to trade. So the fact that over 100% of the float was sold short, means that some of these shorts were “naked”
Naked shorts are shares that are sold to short that don’t exist. To help explain, he’s an example of naked shorting
Lets say I believe that Company X is going out of business. I am so confident that Company X will go bankrupt in fact, that I sell 138 million shares of Company X on the open market despite the fact that I don’t actually own any shares and there are only 100 million shares of Company X in existence.
In that example, if Company X stock soars, I’m responsible for buying every single share in existence back and then an additional 38 million shares that don’t exist to cover my original short position.
Now, all of this is very illegal as short selling was outlawed after the 2008 financial crisis. However, that still hasn’t stopped it from being a major problem in the modern market.
- January 25th, 2021 (The week of insanity)
On the first day of the week of insanity, GameStop would close lower then it started the day. Going from $96.73 at opening to $76.79 at close. But not before hitting an intraday high of $159.18.
The day would also be noted by many financial firms lowering there price targets for GameStop and denouncing the current price action as nothing more then high flying emotions.
- January 26th, 2021
This would mark the biggest single day rise GameStop had seen up until this point. Opening the day at $88.56 and closing at $147.98 for an amazing gain of 92.71% on the day
Short sellers were reported to have lost over $5 billion dollars in the month of January alone!
What would come following this is the biggest and fastest run GameStop has ever seen.
Shortly after closing bell, Tesla CEO Elon Musk would tweet “Gamestonk!!” and link to BSW which was considered to be the main hub of the retail investors at the time.
GameStop would soar well over a 60% gain in after hours trading, signaling that the next day would bring on something never seen before.
- January 27th, 2021 (The day of insanity)
January 27th, 2021 would mark arguably the most insane trading day for GameStop we have seen up till today.
Opening at a breathtaking, $354.83 per share, and ending the day at $347.51 still closing for the largest single day gain to date of 134.84%
However, the headlines took a very noticeable shift in attitude on this day. Going from praising and fully acknowledging GameStop current achievements, to downgrading it as second class news at best, and outright lashing out at the stock at worst.
An example of this would be CNBC, which went from praising GameStop on the 26th, to posting an article on the 27th titled
“You will lose your money very, very quickly’: What investors need to know about GameStop’s stock surge”
Needless to say, the mainstream media had soured its opinion of GameStop seemingly overnight and from this point forward, there would be little, if any, positive articles released by mainstream news sources.
- January 28th, 2021 (The great betrayal)
On January 28th 2021, Popular retail brokerage Roobinhood, would seemingly betray the retail investors who had given it so much influence by freezing the buying of GameStop and various other retail stocks, only allowing users to sell their position while completely stopping all forms of buying for these stocks.
While GameStop would hit its ATH (all time high) of $483 on this day, it would close the day at $193.6 for a loss of 44.29%.
Mainstream outlets would report this as the “end of GameStop” and this “plunge” was a natural result of its previous skyrocketing and not due to the illegal halting done by Roobinhood
- January 29th 2021 through the first half of February (The fake death)
Following the hard hit on the 28th, GameStop would experience one more big green on the 29th, closing at $325 for a gain of 67.87% then would fall hard in the following weeks to come
Mainstream media would paint this as “the end of the GameStop story” making a narrative of the short squeeze being over and the stock being wildly overvalued
GameStop would close February 17th at $45.94 a share, representing less then a 1/10th of its highest value a month prior.
- February 18th 2021 (The Congressional hearing)
Despite all this insanity and throughout it all, DFV continued to post consistent updates of his GME YOLO position on BSW.
On February 18th 2021, a House Financial Services Committee hearing was held regarding the GameStop story till that point. While many people would appear on the zoom chat the two main people of interest were DFV himself, and Vlad Tenev, CEO of Roobinhood.
Mainstream news outlets very blatantly crafted a narrative of DFV being a market manipulator who was responsible for the high volatility trading in GameStop, While Vlad was portrayed as the misunderstood hero who illegally halted trading to “meet increased regulatory requirements”
GameStop would fall another 11.43% closing at $40.69
- February 19th 2021 (The Double down)
The following day after the hearing, DFV posted an update to his GME YOLO position. What shocked everyone however was the fact that he doubled his shares from 50,000 to 100,000 from the previous day.
This, proving what he said in the hearing, saying he saw this price as a point were he could, and then did, buy more.
- February 24th 2021 (The resurrection of GameStop)
Late in the afternoon of February 24th 2021, GameStop soared from its opening price of $44.70 to a closing high of $91.71, representing a gain of 103.94% on the day.
This was completely out of nowhere. Everyone looked in awe as GameStop seemingly rose from the dead after falling from its January high
Along with this revival, a new name for these retail investors buying GameStop was created.
The name “Ape” refers to an individual investor who buys GameStop and will never sell their shares until MOASS (Mother of all short squeezes). MOASS will occur when all shorts cover their position in GameStop’s stock price soars to highs never before seen in the market
- April 16th 2021 (The final update)
Throughout March, GME would have huge swings ranging from $100 to $340 dollars as the more people looked into the whole situation, the more questions seemed to arise.
Nevertheless, there was one date everyone was looking forward to, April 16th, the day DVF’s calls would expire.
DFV, had been sitting on 500 April 16th 2021 $12 call contacts which would give him the right to purchase 50,000 additional shares of GameStop at $12 per share
Many wondered if he would actual exercise these calls, or simply sell them for the cash.
On the day, April 16th, DFV posted his last update titled “GME YOLO update – Apr 16 2021 – final update”. It showed he not only exercised all 500 contracts buying 50,000 shares for $12 each, he also purchased an additional 50,000 shares at current market value, making his total GameStop holdings 200,000 shares strong.
To this date, this is the last post DFV has made on Reddit
- July 26th 2021 (current day)
As of writing this, GME sits slightly positive in premarket around $180
I wrote this for all the new apes I meet on here, along as in my day to day life. This journey isn’t even 2 years old and already has enough content for an entire museum.
I have no doubt this isn’t the end of the story, nor have we even seen the biggest swings yet to come. I imagine once this is all said and done and this book is finally closed, everyone here will remember this event as one of the most exciting, enjoyable, emotional, and memorable adventures we could have ever been apart of. As we take our place in the history books, as participants in the greatest wealth transfer in human history.