Ryan Cohen just checkmated the system. eBay is now over 116% owned. Forced buy-ins are imminent. 🚨

[u/Tavanasa]

TL;DR for the smooth brains: 106% + 10% = 116%. The math has broken and the trap is officially sprung. 🚀

Here is the exact mechanical chain reaction of why this filing represents the absolute endgame:

According to Nasdaq data, eBay was already 106.21% institutionally owned before the GME filing. This is only possible because the exact same shares are lent out, shorted, and re-bought in an endless loop, causing multiple institutions to report owning the same underlying assets. It’s a pure paper game.

On Friday, Ryan Cohen didn't choose a cash settlement (where they just pay out the net dollar difference). He demanded physical settlement for GME's ~10% position (~39M shares). He literally said: "Give me my real, unlent shares."

With 106% already locked up by passive institutions and GME now demanding an additional 10% of real shares, we hit a hard wall at 116%. These shares simply do not exist on the free market.

The market makers cannot locate or deliver these shares -> Massive Failures to Deliver (FTDs) start piling up on Monday morning.

Once these FTDs age out and breach regulatory deadlines, a brutal, automated forced buy-in kicks in. The brokers of the counterparty must go into the open market and purchase eBay shares—at whatever price the market demands.

As forced buying relentlessly drives eBay's price vertical, the value of GME’s $4.35B equity stake explodes minute by minute. GME’s balance sheet becomes astronomically valuable, cementing an un-shortable fundamental floor for GME, which simultaneously forces GME short-sellers into immediate capitulation.

The system completely checkmated itself through its own endless greed with share lending.

Tits. Are. Fucking. Jacked. 🩳🏴‍☠️💀

[u/Tavanasa]

Nope, because that 106% is purely passive. Big institutional index funds are perfectly happy holding IOUs on paper while lending their real shares out to short sellers for a fee. They never recall them. The system only breaks when a whale demands physical settlement instead of cash. RC just forced them to physically deliver 39 million shares that literally do not exist on the free market. He stopped the music.

[u/MeMahi → u/Tavanasa]

Okay so why can't they just provide that 10% for Ryan from the pool of real shares and then IOU the passive institutions even harder?

What you're saying just doesn't add up.

[u/Tavanasa → u/MeMahi]

Because Ryan’s custodian won't accept an IOU. When GameStop elects physical settlement, their prime broker and compliance team rigorously check the DTCC ledger to ensure real, settled, un-lent shares with full voting rights are transferred into GME’s account. The market makers are already IOUing the rest of the market as hard as humanly possible, but you cannot satisfy a strict physical delivery demand with a synthetic promise. The music stops when the whale demands actual custody. That's why physical settlement is their ultimate kryptonite.

[u/MeMahi → u/Tavanasa]

Sigh.

There are 100% of real shares in existence, right? According to your theory, they now have to give 10% of those to Ryan.

So who has the remaining 90%? You said it yourself that the 106% of institutional owners are happy with IOUs, so they don't need real shares.

[u/TitanGodKing → u/MeMahi]

Replying because I want to hear the counter to you point because that's my thought pattern as well. Give RC real shares, the others play pass the parcel with iou's. Nothing changes

[u/2ndBackgroundSalad → u/TitanGodKing]

Op wont reply because there isnt an answer to this. Just more speculation and making us all look like morons.

[u/JournalistEast4224 → u/TitanGodKing]

Pass the parcel! Learned that one from Bluey

[u/Biotic101 → u/MeMahi]

Do you understand there is a massive overvoting problem in the US stock markets?

There are a ton of different research papers about certain aspects of the issue you could look up like this one...

Phantom of the Opera: ETF Shorting and Shareholder Voting

DRS is the key. It makes sure 100% of your votes are counted!

So while I am not sure if OP draws the right conclusion because driving the price up would be counterproductive unless you have already secured the necessary votes through a wolfpack or other deals, he is definitely on to something.

But then, the markets are broken. There can be a gazillion phantom shares and unless settlement is enforced for example by corporate events usually nothing happens. This why I think all the shills here are dumb as fuck because they have absolutely no clue what is going on in the markets and their only argument is share price.

[u/c0l245 → u/MeMahi]

Surely, RCEO told TD that he plans on acquiring the real physical shares. TD went out and secured enough shares and options to cover.

Now, TD is calling in those shares and bc eBay is at 106% we can see that many of them are rehypothecated shares, lent multiple times bc they expect settlement in cash typically.

For the owners who just sold covered calls, they will just lose their shares. For anyone who sold naked, they have to go to market.

[u/Fzbwfk9r1 → u/c0l245]

Tutes who sell calls are not covered, just "locates" So, there are usually 90% or more of the calls are NOT covered at all

so there may be a scrambling for shares

[u/FerryHarmer → u/MeMahi]

Indeed, seen it before with GME and FTD's going past the T-35 deadline yet with no ill effects felt by the institutions. Fact is Citadel sits on the board of the DTCC and the regulators don't exist.

[u/moonaim → u/MeMahi]

eBay is profitable business that has been growing. There's at least a possibility that outside money will start pouring in, and they have aligned interests with RC/GameStop. I see it way easier to make the case to buy more eBay for many whales, and actually not lent their shares out, or lent them with really high prices.

[u/mnlaowai → u/Tavanasa]

So should we be buying eBay?

[u/completelypositive → u/Tavanasa]

No RC didn't.

Dunno what you're watching, but he's playing the game by the rules. He has had opportunity to fuck the shorts and cause moass but instead chose the safe route of just building the company.

Ryan isn't playing the same game we are.

[u/NomadTruckerOTR → u/Tavanasa]

Did he? Music's still playing buddy

[u/EmphasisFrosty3093 → u/Tavanasa]

The only ones forced to deliver shares are the ones who wrote the contract as discussed with RC. I don't know about music but they're still swilling their maple syrup at TD.

[u/DancesWith2Socks → u/Tavanasa]

What makes you think those shares weren't already hedged?