The Margin: Bill and Melinda Gatess divorce was a predictable market phenomenon and bullish for GameStop allow us to explain

By Thornton Mc Enery7 days ago

The end of Bill and Melinda Gatess marriage is just the first in what will be a slew of billionaire divorces, and its all bullish for GameStops stock GME, -0.91%.

And it was just another Tuesday on retail-investor social media.

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The announcement that Bill and Melinda Gates are divorcing caught the whole world by surprise, but by Monday evening members of the Reddit board r/GME had unearthed an almost two-month-old post by user Jobom3 tying a spike in borrowed GameStop shares to the likelihood that billionaire hedge funders and their wealthy investors were increasing their short positions as part of a plan to prepare for their impending divorces.

On the morning of March 11, a Reddit post pointed out that more than 1 million GameStop shares had been borrowed in premarket action, a signal that pro-GameStop Redditors interpreted as a signal of a new skirmish in the ongoing conflict between hedge funds trying to short GameStop into oblivion and Regular Joe investors hell-bent on proving that the videogame retailer is fundamentally undervalued and should not be killed off by wealthy Wall Street traders playing a rigged game.

Another 1 million shares borrowed from ETFs in pre-market blared a Reddit post headline that morning, with a screenshot appearing to show the availability of GameStop shares from ETFs exposed to the stock.

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