On February 8, the war that was ignited on Monday spread to Tuesday, and a large number of retail investors participated in the sniper operation against the institution.
Penguin directly opened 96% higher during the bidding stage!
However, it's not over.
After the market opened, the institution entered an even more tragic situation. In less than an hour and a half, the stock price immediately exploded to more than 140%, and was directly sold to 98 US dollars.
The more the stock price rises, the more retail investors get excited, and the more retail investors get more bullish. The more bullish the stock price becomes, the more the stock price rises. It is simply a positive cycle.
Countless netizens shouted on Riddit: "Get rid of the short sellers, fuck the fundamentals! Do it for me!"
The $100 mark was easily exceeded!
"Oh my God, after this calculation, Penguin's market value is now US$147.9 billion? It's almost 150 billion, right?"
Looking at the green stocks on the screen, Xu Xin was speechless.
"Yes, it has surpassed Google and is already the world's largest Internet company by market value, even though it is just an experience card."
Lu Fei took a sip of champagne.
"According to the precedent of the public short squeeze, even if the stock price falls back, both the stock price and the market value will definitely be higher than before the short selling, maybe from 50 billion U.S. dollars to 60 billion U.S. dollars." John Paulson, "Anyway, congratulations,
Lu, you are now the boss of the Internet giant with the largest market value and the third largest in the world. Do you know what 'nickname' the financial world gives you?"
"What?"
Lu Fei was very curious.
"Internet stock blue whale."
John Paulson laughed: "You almost own the best Internet stocks in the world, Feigou, Penguin, Google, Amazon, Baidu, NetArt, Facebook, Twitter, Netflix..."
"I don't feel as domineering as your 'empty hunter'."
Lu Fei raised his lips and clinked glasses with him.
Xu Xin watched the two of them exchanging business blows, "Should we consider closing some call options?"
"Close the position, what are you thinking about, Xu, it has just begun. During the public short squeeze, the highest market value exceeded US$380 billion! When the New York Stock Exchange announces the short positions on the 15th, we will release the short squeeze signal.
Harvest time.”
John Paulson said: "At least $250 is enough to start."
"$250!?"
Xu Xin was shocked. Most of the positions were opened at around US$30. At US$250, the rate of return would exceed 730%.
Then why are you shorting European debt and the euro?
"Maybe more than that, the stock price may double and exceed $500." Lu Fei touched his chin.
"ah?"
Xu Xin no longer dared to breathe and was breathing heavily.
At US$500 per share, the total market value is more than US$740 billion! It is not only the first in the Internet, but also the first in the world!
"Sister Xin, don't use common sense to imagine a short squeeze."
Lu Fei and John Paulson looked at each other and smiled.
What short sellers can do now is either continue to add margin, continue to pay interest on borrowing securities, or stop losses and close positions.
Once a short seller in this chain retreats and buys stocks, the pressure will be transmitted to other short sellers in the chain. They will compete with each other to close their positions, which will cause the stock price to rise, and it will completely become a short sale.
Empty situation.
"Will the short sellers be so helpless? There is no way at all?" Xu Xin was curious.
"Unless they dare to do naked short selling, but the SEC permanently banned naked short selling after the financial crisis, unless they dare to challenge the SEC, or get the acquiescence of the SEC..."
Lu Fei shook his wine glass.
In "Big Times", Chen Wanxian's shorting of Polaris is "naked short selling", directly selling non-existent stocks on the market, as long as the position can be closed before the delivery date.
The reason why Fang Jinxin won was to risk his own life and find a group of rich people to buy Polaris' stocks, leaving Chen Wanxian unable to buy enough stocks to close his position even though he had money, and the short squeeze failed.
This moment is just like that moment.
"Not necessarily."
John Paulson has rich short-selling experience. In fact, there is a way to exploit the loopholes, which is to use market makers to "sell" Penguin's stocks first and then "borrow" them. This sale will indeed borrow real stocks.
The previous time limit could be up to 23 days, which means there was a 23-day limited period.
"The SEC is investigating us strictly and turning a blind eye to short sellers. Isn't it too biased?" Lu Fei curled his lips.
"Lu, if you are an American and Penguin is an American multinational company, the SEC will never go astray."
John Paulson shrugged, "So we have to be prepared and plan when to reveal the short squeeze news?"
"How about the 14th? The day before the New York Stock Exchange announced its positions, it happened to be the time when the skin sales results of "League of Legends" were announced. We estimate that the sales of the 5 limited skins and the championship skin will be at least 50 to 60 million US dollars.
knife."
Lu Fei looked left and right.
At this moment, Xu Xin picked up the ringing landline phone.
After an exchange, Xu Xin said: "Carlson said that BlackRock, Blackstone, Fidelity, Deutsche Bank, and CICC have all entered the market, as agreed. If nothing else, Penguin's final circulating stocks may not be the same."
It’s 6%.”
"We still need to ensure the minimum standards for the continued listing of tradable stocks on the New York Stock Exchange." Lu Fei said consciously that he was sure of victory, "Yeah, if it weren't for these short sellers, we wouldn't have to celebrate the New Year in the United States."
"Leave this place to me, Lu and Xu. After fighting for so long, you should enjoy yourself and celebrate your Chinese New Year." John Paulson winked playfully.
Well, then who should I call?
Lu Fei rolled his eyes and smiled evilly,
After retail investors defeated institutions for the first time in history, the confidence of retail investors doubled. In the next few days, more and more followers joined in this battle between common people and capital. On the surface, it looked like a drama of farmers fighting landlords.
In fact, it is a Mission Impossible drama in which a group of landowners hide among the farmers to fight against another group of landowners.
Goldman Sachs, Bear Stearns, Morgan Stanley and other short sellers discussed it all night. Although they suffered heavy losses, they became more and more angry as they thought about it. The more they took a step back, the more they thought about the losses. They must carry out the short selling to the end.
I firmly believe that Penguin has completely deviated from the fundamentals, and a rational decline will come soon. If you hold on firmly, there will be a miracle!
So, he went all out and resisted.
A number of short sellers were gathered to jointly file a petition to the SEC, suing Penguin by name, suing Penguin's retail investors, suing the brokerage network platform that supports retail investors, suing Trisolaris Fund and Paulson Hedge Fund, accusing them of working together to manipulate transactions.
.
The SEC is already reviewing trading data to determine whether there is market manipulation, and the Justice Department is also stepping in to investigate false information on social media that incited investors to push up Penguin's stock.
Investigations by regulatory agencies and bad news frustrated Penguin's stock, which only rose 24%.
"If someone posted on Reddit that they were very enthusiastic about a company's stock and were buying it, and suddenly they were selling off a lot of that company's stock, that might be considered market manipulation, but if retail investors' posts weren't
make false statements, then they are not committing an offense."
John Paulson was immediately dissatisfied. He was the first to jump out and question the short sellers. They were shouting to catch thieves and were using social media to intimidate.
Immediately afterwards, the congressmen on Capitol Hill, whether they were the Donkey Party or the Elephant Party, attacked the SEC and other departments one after another.
We have no interest relationship with Penguin!
I just can’t bear to see you bullying the leeks with so many people on Wall Street! Others are afraid of you, but we are not afraid at all!
This is the word of justice!
In the face of public opinion, the short sellers have started a new round of media offensive. In addition to intensely smearing retail investors and portraying retail investors as a group to manipulate the market, they also delete posts, control comments, inflate people, cross-talk, and call out leeks in the retail investors' base camp, the "Wall Street Casino."
They sold Penguin shares and invested the proceeds in other highly shorted stocks.
For example, Nokia.
As a result, the moderators and bar friends didn't buy it at all. After the market was closed, they closed it for an hour to clean up the trumpet and script accounts. In the end, the short sellers were forced to have no choice but to decisively cut off the Internet.
The server that supports reddit was removed, and the server provider said "this has nothing to do with the recent financial market situation", which instantly caused public outrage.
In addition to protesting, they also communicate on Twitter, Facebook, Line, QQ, and YouTube. The daily registration volume and daily active users of Mr. Lu’s media have hit new highs. They are all running to tell each other, “Go with me, gun in hand.”
Kill the short sellers and grab the beautiful sword!
Finally, the short seller was forced to resort to the last trick——
Naked short selling enhanced version of empty ladder attack.
That is to say, the dealer's left hand is reversed. For example, short A borrows shares and sells them at a price of $10. Short B buys the sell order and closes the previous short position. Then, short B shorts and sells at a price of $9.
A buys again to close the position.
If this cycle repeats, the stock price will continue to fall.
In addition to short sellers' short-term attacks to suppress stock prices, there are also institutions such as Michael Berry that are shipping large quantities of stocks, allowing retail investors and short sellers to take over.
The only belief of the furious retail investors was to blow up all Penguin's short positions. When the market closed on Friday, there was a fierce battle between the longs and the shorts. In the end, the longs won a small victory, and the stock price rose by 12% to $67.
Penguin's total market value has risen to US$900 million.
surpassing a series of technology stocks such as Microsoft, Bloomberg reported it on Twitter immediately, and @LuFei.
"Salute to our Iron Man, Tony Lu, who retains the title of the world's richest man, and in the form of the world's first billionaire, beating Bill Gates and Buffett, #Crown#."
From wealthy friends such as Larry Page, Musk, Zuckerberg, and Jeff Bezos to cultural and sports stars such as Kobe Bryant, James, Robert Downey Jr., and Kardashian, they all like it.
"lol."
On Twitter, Lu Fei posted a message, which immediately received likes and comments from all directions.
"Lu, you are my God! Thank you for making me rich! I have used the money I earned from short selling to buy logicX3."
"Tears! From debt to wealth, a life-changing investment, still holding Penguin, thank you, China Land!"
"I was forced to sell it under the heavy pressure of my family. I made a profit of US$270,000. I have replaced the Logic Family Bucket for the whole family to support you."
"Huaxia Continent, take us to the moon!"
"Tony, you may need to strengthen your security and hire more bodyguards to protect you from the retaliation of those hedge funds."
"Yes, those guys may want to hire someone to kidnap you."
"…………"
"Zizzi."
Lu Fei was rolling out dough in the heated villa.
Jing Tian and Yang Mi were wearing small aprons and making dumplings, with flour on their hands and faces. They were talking and laughing with each other, as if that night had never happened. They were still good sisters and best friends.
Their eyes turned to Lu Fei invariably.
"You wrap it up first."
Lu Fei quit Twitter and saw countless missed calls and unreceived text messages on his phone, including New Year greetings and congratulations.
In particular, Lu Huateng and other Penguin generals were beaming with joy. Although Penguin's current stock price must be artificially high, being overweight is also fat, and at any rate, their net worth on their books has skyrocketed several times.
In addition, Ivanka calls the most frequently, with a total of 21 missed calls, one every one or two minutes.
Her tone of voice is sweeter than Gao Yuanyuan, Zeng Li and others.
"Congratulations, Lu, wow, I saw you on TV. The major news stations said that Penguin's stock price performance is simply a market miracle! A total of 300 billion US dollars, oh buy it!"
"It's okay. The current stock price can't explain anything. The stocks after they fall back will be the real money."
"You want to come to my house?"
"You don't want to come. You don't know how to make dumplings. Besides, the Spring Festival is not an American holiday. What?!"
"You can also learn. Do you like the Chinese Spring Festival very much?"
Lu Fei glanced at Jing Tian and Yang Mi. They had slender hands and beautiful looks. They were enough to eat. Don't think of it. They were talking about dumplings.
"Okay, this time "The Big Short" has received a good response on YouTube, which will help us compete for the Oscars and maybe win the award. Do you want to go to the scene and experience it?" Ivanka still refused to give up.
"Oscar, let Yang Mi and Jing Tian go. I have a lot to do and I want to focus all my energy on my career."
"Okay, I originally thought that I would report to you about the company's various plans for the new year, such as "Avengers" and "Twilight 4" have been approved, and the monster movie you want that is suitable for Sino-US co-production, that's the one
"Pacific Rim", we have discussed the script before, the first draft is completed, when..."
"You can report to me during these spare moments."
"Okay, I will give you a good report in person~"
"bye."
After hanging up the phone, Lu Fei noticed Yang Mi and Jing Tian staring at him, "Get ready to attend the Oscars with your sister Zeng Li and show your face."
"Thank you, senior (Brother Fei)."
Yang Mi and Jing Tian thanked each other in unison.
"Don't be like those carpet stars who linger on the red carpet and let the foreigners next door see it and think that actresses from the Han and Tang Dynasties can't win the Oscar. Anyway, everyone has it and they can win it every year!"
Lu Fei smiled and said, "What movies have you been filming recently?"
Yang Mi said that in addition to "Agents of S.H.I.E.L.D.", she had taken on two supporting roles in "Avengers" and "Prometheus". Her words revealed her envy of Jing Tian's resources——
Because she actually got an audition for "Transformers 3"!
"When I met Ivanka, I told her that there are not enough dramas in the company, so if you can get other resources, try to get them."
When she got the promise from Lu Fei, the resentment in Yang Mi's heart dissipated instantly, while Jing Tian on the side asked weakly:
"Brother Fei, are you really the richest man in the world as the news said? Your net worth has exceeded 100 billion US dollars?"
"It's only temporary. It won't be long after Penguin's stock price drops. I don't want to be the richest man in the world. It's really too ostentatious."
Lu Fei put on the mask of pain, I really don't like money.
I'm not interested in money! The short sellers are hurting me!
"ah!!"
Each of them was more agitated than the other, unable to breathe at all, panting heavily, eyes twitching, and legs weak.
Yang Mi licked her lips. Compared with the dumplings stuffed with leek and meat, how could the white and tender "Tang Monk Meat" in front of her be as delicious?
"Bang bang bang!"
Outside the window, New York City was set off with fireworks as bright as day.
Three people in a foreign country were eating dumplings made by themselves and drinking white wine. The more they ate, the more they ate. First they ate 7, then 7 more.
Mr. Lu ate the last two meat fillings.
"Bang bang bang!"
In 2010, it was a double hit, brilliant and dazzling.
During this year, there were some who were proud, but also some who were disappointed. The news that Mr. Lu was "the world's richest man with hundreds of billions" spread to the mainland and spread to Hong Kong. The originally good year could not be passed at all!
Chapter completed!