Fidelity just made an oopsie on the worst possible stock

- Advertisement -


Listen, mistakes happen all the time, even in the highest echelons of finance.

- Advertisement -

Someone makes a rough keystroke and some zeroes are added to the buy or sell orders, or a trading-floor intern spills coffee on a disgruntled VP who then asks to go to the wrong stock, or a bank executive at a picnic. Goes to his private Caribbean island with a mysterious customer, or once Standard & Poor’s accidentally downgraded France to… the country.

- Advertisement -

But if you’re Fidelity Investments — and you’ve spent much of 2021 pulling in a steady stream of retail investors, thanks in large part to Robinhood’s HOOD,
-4.17%
Jan Butfumble resulting in trading bans on popular names at the height of the meme-stock short – the last thing you want to do is give those retail apes a reason to lose faith in you.

And you definitely don’t want to do this on a stock like GameStop GME,
-2.87%,

- Advertisement -

Which makes it very hard to see why the rising band of retail apes spent much of Tuesday morning ignoring the macro bloodbath in the index and what they thought about Gamestop like a blatant anomaly on Fidelity’s platform. was appearing.

“WTF?! Can someone explain where these shares came from? Asked user Hamberere on the GameStop subreddit r/Superstonk late Tuesday morning, sharing a screenshot of his Fidelity account, which shows about 13,767,545 shares available for short Were.

For the GME pro apes who spent 10 months trying to stop short sellers from getting their hands on GameStop shares — and even moving their accounts to Fidelity and even closing them. To direct-register to keep – it was a shockingly high number of shares available, and over 2 million available as of Monday evening.

Users in Reddit low-key speculated that the shares they attempted to lend to DRS were being lent out by Fidelity, or that the brokerage was misguiding them in other ways, or that some large hedge fund had lost their money. had covered the short position (which was a tough one considering the stock has now fallen by over 19% over the past five days).

Fidelity appears to have experienced an influx of calls from furious retail investors on Tuesday and ended a rough day on social media because something was wrong with the GameStop in 2021.

And the company’s initial efforts didn’t calm the nerves, with an afternoon response from angry customers on Reddit explaining how Fidelity calculates shares, something the Reddit app is deeply aware of so far.

But by noon the clarification was received.

“Today, 11/30, our trade ticket indicated an incorrect number of GME shares available for short,” read a post on Fidelity’s own subreddit, posted just after 3:30 p.m. Eastern. “After researching volumes with our lending services team, we were able to identify that the root cause was an incorrect entry of the number of shares available for short by one of our external counterparties. Issue was closed today at 12:10 pm Corrected by PM ET. GME share available for short is now correct on trade ticket.”

And the company also clarified perhaps the most important concern for retail folks.

“We can confirm that the number of shares borrowed never exceeded the actual amount available.”

While that explanation was more detailed, it was not much.

And Wet Dirt Kurt wasn’t alone, making it clear that Wednesday will almost certainly be filled with some Internet sleuths looking to find an outside counterpart to the social media error; One post has already provided a clue as to who will dominate the flavor of speculation:

“Photo leaked of Fidelity intern in charge of data entry,” blurred on the post on r/Superstonek and accompanied by a headshot of Citadel founder/app archenemy Ken Griffin, photoshopped with a curly mustache.

But Reddit is already buzzing with a spirited campaign among the apes to keep direct-registration of its GME shares and keep them out of the hands of anyone who borrows and short them.

That campaign got a boost on Tuesday afternoon, and Fidelity ended with a hole in its dadcore-prestige armor.

Wednesday should be interesting to everyone involved.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox