There's an innate allure in cinematic representation of real-life events, especially when those events are ongoing and their conclusion yet undetermined. "GameStop: Rise of the Players" is an attempt to capture the ongoing saga of the GameStop short squeeze, a saga that arguably redefined the relationship between Wall Street and retail investors. The challenge here, however, is that the saga isn't over, and the movie, therefore, feels premature. It's akin to trying to write the ending to a book that is still being written.
The movie attempts to chronicle the tumultuous events surrounding GameStop's stocks but fails to tackle key elements of the saga. It shies away from the complex but crucial issues like naked short selling, Failure-To-Deliver (FTDs), and the warehousing of such FTDs.
This evasion feels like a disservice, considering that these are central to the entire GameStop episode. A report by the SEC on September 8, 2021, confirmed the presence of naked short selling and FTDs during this saga, which exposed a glaring loophole in the financial system.
Then there's the matter of short interest exceeding 100%. In January 2021, reports suggested GameStop's short interest was a staggering 140%. That's more stocks shorted than even available, an inconceivable scenario that should have triggered immediate investigations. But it didn't, raising questions about the oversight mechanisms of our financial systems.
The movie also glosses over the controversial aspect of self-reported short numbers, which allows institutions to essentially police themselves. The absence of a third-party verification process is puzzling, akin to letting the fox guard the hen house.
Another glaring omission is the discussion on the disparity between financial penalties and the profits gleaned from unethical activities. Firms have been fined millions for infractions that brought them billions, effectively making these penalties a cost of doing business. For example, JP Morgan Chase was fined $920 million in 2020 for manipulating the precious metals market, but such a fine pales in comparison to the profits they made.
The film's most glaring fault, however, is the portrayal of retail investors. In real life, these investors weren't merely pawns in a larger game but were informed individuals who saw an opportunity and seized it. These were the players who noticed that GameStop was being shorted at an unsustainable level and acted on that knowledge.
Despite these flaws, "GameStop: Rise of the Players" isn't without its merits. It's flashy, fast-paced, and peppered with snappy one-liners. But ultimately, it feels like an effort to hypnotize with style over substance.
As for who the movie is for - that's a good question. If it's not for the retail investors it purports to represent, then it feels like it's for those who wish to maintain the status quo. It seems more like a tool to perpetuate the narrative that retail investors are not savvy enough to play the game, rather than highlight the glaring inefficiencies in our financial systems.
To enjoy this movie, you'll need to look past these omissions and view it purely as entertainment. But in doing so, we must ask ourselves: Are we merely accepting the distractions instead of addressing the real issues? If a movie about a seismic event in financial history can't discuss the fundamental faults of that system, what can?
"GameStop: Rise of the Players" had a unique opportunity to spotlight a broken system. Instead, it chose to focus on the spectacle and left the substance on the cutting room floor. As the GameStop saga continues to unfold, one can only hope that future attempts will dig deeper into the heart of the matter.
The movie attempts to chronicle the tumultuous events surrounding GameStop's stocks but fails to tackle key elements of the saga. It shies away from the complex but crucial issues like naked short selling, Failure-To-Deliver (FTDs), and the warehousing of such FTDs.
This evasion feels like a disservice, considering that these are central to the entire GameStop episode. A report by the SEC on September 8, 2021, confirmed the presence of naked short selling and FTDs during this saga, which exposed a glaring loophole in the financial system.
Then there's the matter of short interest exceeding 100%. In January 2021, reports suggested GameStop's short interest was a staggering 140%. That's more stocks shorted than even available, an inconceivable scenario that should have triggered immediate investigations. But it didn't, raising questions about the oversight mechanisms of our financial systems.
The movie also glosses over the controversial aspect of self-reported short numbers, which allows institutions to essentially police themselves. The absence of a third-party verification process is puzzling, akin to letting the fox guard the hen house.
Another glaring omission is the discussion on the disparity between financial penalties and the profits gleaned from unethical activities. Firms have been fined millions for infractions that brought them billions, effectively making these penalties a cost of doing business. For example, JP Morgan Chase was fined $920 million in 2020 for manipulating the precious metals market, but such a fine pales in comparison to the profits they made.
The film's most glaring fault, however, is the portrayal of retail investors. In real life, these investors weren't merely pawns in a larger game but were informed individuals who saw an opportunity and seized it. These were the players who noticed that GameStop was being shorted at an unsustainable level and acted on that knowledge.
Despite these flaws, "GameStop: Rise of the Players" isn't without its merits. It's flashy, fast-paced, and peppered with snappy one-liners. But ultimately, it feels like an effort to hypnotize with style over substance.
As for who the movie is for - that's a good question. If it's not for the retail investors it purports to represent, then it feels like it's for those who wish to maintain the status quo. It seems more like a tool to perpetuate the narrative that retail investors are not savvy enough to play the game, rather than highlight the glaring inefficiencies in our financial systems.
To enjoy this movie, you'll need to look past these omissions and view it purely as entertainment. But in doing so, we must ask ourselves: Are we merely accepting the distractions instead of addressing the real issues? If a movie about a seismic event in financial history can't discuss the fundamental faults of that system, what can?
"GameStop: Rise of the Players" had a unique opportunity to spotlight a broken system. Instead, it chose to focus on the spectacle and left the substance on the cutting room floor. As the GameStop saga continues to unfold, one can only hope that future attempts will dig deeper into the heart of the matter.