$PI Reposting to share a story. Please widely share this post among Pi friends and family. This story will definitely provide great inspiration for Pi pioneers—what everyone should do for their own goals! The story is a bit long, so please be patient and read it all!!! 🙏🏻🙏🏻🙏🏻
He could only afford five-cent beer, but he invested all his savings in a junk stock. In just six months, his assets skyrocketed to 47 million dollars because this stock would become the century battle between retail investors, small traders, and the arrogant Wall Street funds. This is the famous short squeeze event during the pandemic. His name is Gil, a financial analyst at Wantong Insurance and also a YouTube streamer. One day, he told his followers he bought stocks. A friend advised him to sell the junk stock quickly—after all, he had a wife and kids to support. Gil said he not only bought stocks but also used all his equipment to buy GameStop. The friend thought Gil was joking, but when he showed his phone as proof, they realized Gil was completely crazy. GameStop was the world's largest retail giant for TV games and entertainment software at the time, but it had been hit hard by online shopping and digital gaming, dropping over 90% in the past three years. Wall Street wanted to profit from this crisis, including famous American firms like Castle Securities and the 72 Point Hedge Fund, with Melvin Capital being the biggest. Melvin, only 36 years old at the time, was already the most profitable hedge fund on Wall Street. He had been making money by shorting GameStop for six consecutive years, pushing the stock from $28 to $2. The store owners changed six times in two years. They planned to continue shorting GameStop, already celebrating their victory early with champagne. So Gil’s action of buying GameStop stock was almost like throwing money into the water. But unexpectedly, when he woke up, the stock price had surged 130%. This unprecedented jump scared Melvin to the point of wetting his pants. He never expected the reason for the surge was because a small internet celebrity, Gil, said he loved the stock very much. Gil’s wife was about to be laid off due to the pandemic, adding pressure on him. Meanwhile, his childhood friend’s words made him doubt his choices, but his wife fully supported his decision to buy GameStop. He went live on stream, letting his wife see what the investors were saying if he was unsure. Gil returned to his study, turned on his computer, and wore his signature red bandana. He had streamed a few times before, sharing his investment methods. Although the viewers were few and often mocked him, Gil chose to respond humorously rather than avoid. Then he seriously shared his views on investing in GameStop. Because Wall Street’s big players shorted GameStop, the stock hit a low of only $3.85. Gil believed Wall Street’s big sharks had made a wrong call this time. Their shorting severely underestimated GameStop’s value, which had been shorted by 140%. This meant the more retail investors bought, the more the shorts would lose—causing huge losses for the hedge funds. Despite most people now buying digital games online, a quarter of loyal customers still bought physical discs at GameStop. So Wall Street was deliberately messing around. As long as retail investors united to push the stock price up and refused to sell, they could crush the capitalists’ big short positions and make a huge profit. But Wall Street always thought retail investors were just a mob—short-sighted fools who only chase short-term gains. They called these ordinary people’s money the easiest “stupid money” to make. Seeing retail investors entering, Melvin added another 600k shares to short, waiting for the price to fall. These retail investors were the “chives” he wanted to harvest. But he never expected that his continued shorting would be seen as declaring war on GameStop. The retail investors decided to rise up, not for profit, but to overthrow Wall Street’s giants. Online comments flooded in, encouraging each other, buying the stock madly, calling everyone to join the fight. Because they had nothing left, if each person invested a few hundred or thousand dollars to fight back, they could topple these Wall Street elites who looked down on them. This was no longer just about making money from stocks—it had become a thrilling revolutionary struggle. Thus, a butterfly effect in the stock market began. A nurse with a $50,000 debt saw Gil’s call and immediately invested half a month’s wages. These capitalists had made her life miserable. Mark, working at GameStop, lost his job due to the short squeeze and couldn’t get paid for months. He also invested his last hundred dollars into GameStop. A college girl heavily in debt, whose father had worked diligently at a big retail store before being bought out by Wall Street funds and bankrupted, also poured all her savings into the stock. She hated these capitalists. A spark can start a prairie fire. With everyone’s effort, GameStop’s stock soared to $10. In 2020, the U.S. experienced its most bleak Christmas ever. Gil livestreamed his results: GameStop had multiplied five times since last summer, from $4 in July to $21.70 now. Few investment theories truly work, but viewers kept commenting, “Let GameStop fly to the moon!” Gil earned the respect of all netizens. The reason they could buy stocks for just a few dozen dollars was thanks to an app called Robinhood, a mobile trading platform dedicated to stock trading. Registering an account allowed anyone to buy and sell stocks. Unlike traditional finance apps, Robinhood charged no trading fees, making it accessible to almost everyone. Just search for the stock code, swipe, and press send—order done. Robinhood’s user base soared to 20 million. They could still profit for free because they facilitated stock trading orders—users’ trades were passed to market makers who executed the orders, earning a small commission. Though tiny, it added up with huge order volumes, making Robinhood very profitable. Several market makers partnered with Robinhood, mostly with Castle Securities. But this business model also gave Wall Street a handle on Robinhood. On January 19, 2021, GameStop’s stock hit $43. Wall Street bet it would crash, but retail investors kept buying, delivering a heavy blow to the big players. The stock surged 70%, then hit $90 in just one day. Gil posted online: “Wall Street is about to be squeezed out. Retail investors are rising from the bottom to the top.” Short squeeze is a market mechanism—its opposite is shorting. If a stock being shorted keeps rising, short sellers need to buy back shares at high prices to cover their positions, which drives the price even higher. When many short sellers buy back to cut losses, the stock keeps climbing—this is a short squeeze. At this point, Gil had already made $11 million. If he sold now, he’d have made a huge profit. But retail investors hesitated, watching whether Gil would sell. GameStop’s stock was in an extreme situation: Wall Street held 140% of the shares short. Even if they bought all the shares, it wouldn’t be enough to cover their borrowed stock—they’d need to buy multiple times. So the stock could keep rising infinitely. Even scarier, the biggest holders were the “fools” in Wall Street’s eyes—hedge funds that didn’t realize that their daily efforts only made ordinary people richer. Born at the top of the pyramid, they ate prime steaks, went to luxury clubs and yacht parties, and boasted about how “stupid money” was so easy to make. This post resonated with all retail investors. The GameStop event instantly became a class war. So what if you’re just a tiny shrimp? As long as enough of you join, even a small fish can flip a whale. Gil urged everyone to hold firm and not sell. This had nothing to do with money anymore. But Melvin never realized how terrifying the scene was about to become. That night, he told his wife the stock would crash next week because retail investors would take profits. He believed no short squeeze had ever succeeded before. But the next morning, the stock surged 103%, and 220% of retail investors bought in and refused to sell. The scene exploded across news and live streams. The nearly dead GameStop became the most active trading company in the world, with its stock rising nearly 4% every minute. By night, it had surged 581%. Experts warned that the short squeeze could bankrupt several firms, especially the foolish hedge funds betting against GameStop. Gil’s wife asked: “How much did we make today?” Gil said: “Five million.” She asked: “How much yesterday?” Gil: “Four million.” She couldn’t believe it. “Are we really rich now?” Conversely, Melvin’s wife asked: “How much did we lose today?” Melvin: “One billion.” She: “And yesterday?” Same answer—another billion. News reports soon announced Melvin Capital was about to go bankrupt. During an interview, Melvin struggled to compose himself, but just as he was about to livestream, he fled, shutting down his computer—he was finished. In just a few days, he lost 6.8 billion. Yet he had to keep investing because stopping now would mean losing everything—his last meal, his reputation. He had to ask other funds for help. Wealthy investors generously invested 3 billion to buy into Melvin Capital. They believed making money off the poor was risk-free. After rescue, GameStop’s stock fluctuated wildly. The 8 million shareholders’ pooled money was dwarfed by a single statement. Gil had already earned 23 million. His family urged him to sell, but his wife fully supported him, knowing how much effort he put in. Netizens waited for updates—would Gil sell or not? Gil refused to sell. GameStop’s stock kept soaring, reaching nearly $350 per share. Even the White House began to pay attention. The Treasury Secretary and experts intervened. As the frenzy grew, capitalists couldn’t take it anymore. Wall Street finally fought back, calling in major media to question the stock’s rapid rise and the behind-the-scenes pushers. This instantly made Gil a stock god. But the effort failed. They cut off Gil’s online forum, silencing discussion. Then they fired him from Wantong Insurance. With children to feed, many retail investors couldn’t see Gil’s posts and sold their stocks. That night, Robinhood’s app also had issues. The National Securities Clearing Corporation demanded a 3 billion margin to settle all trades. Robinhood’s CEO said they only raised 2 billion. Without enough margin, they couldn’t continue trading, and their IPO plans were in jeopardy. The next day, millions of retail investors opened Robinhood and found they could only sell, not buy. Panic spread. The CEO of Castle Securities contacted Robinhood’s CEO: if they set GameStop to sell-only mode, they could reduce the margin to 600k. Robinhood agreed, citing insufficient margin, and suspended buying. After disconnecting, GameStop’s stock was dumped in panic. Media outlets amplified the panic, warning investors to sell or face total loss. They shut down forums, controlled banks, manipulated media, and created anxiety. This perfect combo broke retail investors’ resolve. Robinhood betrayed its users, helping capitalists short the stock, causing widespread dissatisfaction. Some behind-the-scenes manipulation was suspected, but Robinhood couldn’t explain. Gil received a subpoena the next day. Many suspected he was a scammer helping shorts. As millions of investors saw him as a stock god, he suddenly fell from grace. His reckless brother surprisingly comforted him, though he’d always called Gil a “homebody.” Gil managed to scare the wealthy into panic. He told them to be brave and face it. Robinhood, Castle Securities, Melvin Capital, and Gil were all summoned to testify before Congress. Wealthy people could hire teams of lawyers to craft their statements, even choosing backgrounds to appear more noble. Gil only had family and friends who didn’t understand much. The next day, key members of the U.S. Congress’s Financial Committee attended the hearing. Castle Securities’ CEO brought a team of lawyers, afraid of saying the wrong thing. Melvin Capital, overly nervous after the failed short, forgot to turn on his mic, drawing ridicule. Robinhood’s CEO avoided questions and rambled uselessly. Only Gil, unprepared but calm, faced the lawmakers and clearly expressed his views. He said he came from an ordinary background, didn’t know any big bosses, and had been unemployed for a long time after college due to market conditions. He spent a lot of time self-educating on investing, discovering violations like delayed trades and manipulative shorting tactics. He believed the stock market should be fair for everyone—smart and lucky people could make big money. But now, big companies with tech and info advantages left small investors hopeless. He just liked GameStop, and his sincerity touched countless viewers. Gil said he wouldn’t sell his stocks, and viewers also pledged to hold. The next day, GameStop’s stock was suppressed from $500 to $40. But three days later, Gil reopened his computer and bought again. The stock surged again, doubling his holdings to 100,000 shares. Within a week, GameStop’s stock tripled again. A worker invested $100 and earned $180k. Two college girls made $270k each. The nurse’s debt shrank to just $10,000. And they all refused to sell. Later, Gil bought his brother a red sports car. Melvin’s fund shut down in 2022. Robinhood went public in July 2021 but performed poorly, with trading volume only 10% of its peak two years earlier. The founders no longer were billionaires. Six months later, court documents revealed that Robinhood and Castle executives had discussed massive trades the day before the halt. The court dismissed the lawsuit. A month later, the SEC completed its investigation and made no charges. The incident mostly faded away. Gil posted his last online message on April 16, 2021. His assets were $34 million. About 85% of hedge funds started investigating retail investors’ holdings, fearing another squeeze. Hedge funds drastically cut short positions. Wall Street could no longer ignore the “stupid money” effect. That’s the full story.
Workers of the world, unite!!!
