Reborn: Billionaire in College

The situation began to become more and more interesting.

Chen Pingjiang can see the short selling index of Ortex, retail investors can see it, and short sellers can also see it.

Chen Pingjiang saw hope of turning defeat into victory, and retail investors saw hope of beating the short sellers, and the short sellers were not idle either.

Now that things have come to this, there is nothing we can do but to take extreme measures.

If the stocks are only in the hands of Chen Pingjiang and the short sellers, the short sellers will inevitably panic and a run for the stock will occur.

Just like when Porsche acquired Volkswagen, the stock price would be pushed to sky-high levels.

Because the short sellers know that Chen Pingjiang will not release the stocks he holds.

But there is a third party in this battle between bulls and bears!
This is the key factor.

Without Tom and his group of retail investors, the short sellers wouldn't be so eager to engage in naked short selling!
But it is precisely because of this group of retail investors that the bears feel that they may not die!

All you need to do is push the stock price down further, forcing retail investors to leave the market and hand over their stocks. After you buy the stocks at a low price, you can continue to play the game.

This is a three-way contest.

The situation has turned into Renren + retail investors VS Wall Street shorts!
Wall Street short sellers are frantically smashing prices to avoid a short squeeze.

The next day, Renren's stock price dropped directly to $129.63, falling below the $130 mark for the first time.

The situation is extremely tense!
Chen Pingjiang's fund-raising activities are still ongoing, but he is no longer a key force at the moment and can only be considered a basic force at best.

The key swing force lies here with retail investors.

At this point, there are only three possible outcomes for the short sellers.

1. Hold on to the end, keep selling, and force retail investors to leave the market.

2. Admit the loss, close the position and return the money to the lender.

3. The lender believes that you may not be able to repay the stocks and forces you to buy back the stocks and return them to the lender.

The first ending is making a big profit.

The second outcome is to admit defeat and suffer a small loss.

The third outcome is short squeeze and huge losses.

11 month 17 number.

In just three hours in the morning, Renren's stock price soared by 5%. More and more retail investors poured in. After seeing the short-selling index, they increasingly felt that there was a chance of winning in this game.

Short-selling institutions on Wall Street were also unwilling to be outdone and began to increase their short-selling efforts. On the afternoon of the 17th, the stock price remained sideways. The long and short sides remained deadlocked until the close of the market, and the short-sellers breathed a sigh of relief.

The closing price for the day was $133.13.

What a big show!
The battle between bulls and bears is in full swing!

Many of the onlookers were stunned by the scene.

…………

That night, several major short sellers came together.

Carson Block of Muddy Waters, Steve Cohen of hedge fund Point72, the head of the well-known short-selling institution Citadel, the multi-billion-dollar Melvin Capital, Eindhoven, and of course Citron Andrews.

"Everyone, tell us what you think. The situation must be turned around. If it is not turned around, we will not be safe," said Carson.

Andrew shrugged indifferently: "Anyway, Renren's stock price has been smashed down to nearly 40 yuan. We have made a profit, the only difference is how much we make. Even if we close our positions now, we will still make a small profit."

Steve Cohen sneered at him and said, "That's easy to say. If you run ahead, you will be notorious on Wall Street in the future. It's like deserting in wartime. The current situation is a short squeeze. There are so many of us running together and we can't escape. We can only survive by driving away the retail investors and directly smashing Renren's stock price to the bottom. You can only make a little money if you stop now."

Proskin, the founder of Melvin Capital, nodded and said, "We still need to use some tricks on the retail investors. If we can't force them out in the market, we can force them out from outside the market."

Carson smiled and said, "Hey man, if you have any tricks, just tell me. There are no outsiders here."

"First, we need to release negative news and bearish attitudes about Renren on Twitter. Carson has a follow-up report, so we should release it together. Second, we need to hire trolls to infiltrate their forums to divide retail investors. Third, we need to find Tom and tell him to stop talking nonsense. Fourth, we need to temporarily shut down WSB, the headquarters of retail investors. Fifth, we need to contact those retail trading platforms to prevent them from buying Renren shares."

When Proskin said this, everyone present was not surprised and smiled.

This is the real Wall Street!
What's wrong with turning the table over when you can't play?
It's just some leeks anyway.

They have money and connections, so they have nothing to fear even if they are investigated.

"I agree!"

"I agree too!"

"..."

November 11th is also the last trading day of the U.S. stock market this week.

After checking the market in the morning, Renren's stock was still trading sideways.

The sudden change occurred at 10 o'clock in the morning.

Andrew, founder of Citron, was the first to post on Twitter: [To be honest, Renren's stock price is really too high. I think it is only worth $80 at most.]

Then, Carson, the founder of Muddy Waters, released a new short-selling report on Renren.com. In his report, he pointed out that "many groups under the name of Renren.com founder Chen Pingjiang have unclear equity issues. For example, Renren Entertainment Group should be a wholly-owned subsidiary of Renren.com, but why is Renren.com only a small shareholder in it, while Chen Pingjiang himself is the major shareholder? Is there any possibility of embezzlement of company assets and damage to the interests of shareholders?"

To put it bluntly, Chen Pingjiang is accused of abusing his position at Renren and violating his fiduciary duties to the company and its shareholders.

At the same time, several short-selling institution founders and economic analysts once again became bearish on Renren.

Renren's stock price fell in response.

Just one hour after opening, there was a flash crash!
In the WSB forum.

The "leeks" panicked for a moment when they saw the sudden collapse of Renren's stock price.

"Tom, where are you? How can we speak now?"

"He was offline yesterday. I don't know what he did."

"Tom is a liar. He tricked us into boarding the ship. He might run away."

"..."

Amidst everyone's long-awaited requests, Tom and his wife hid in an inconspicuous motel.

"Some short sellers came to me and told me not to talk nonsense, otherwise I would be in trouble. So I was scared and moved to another place." After seeing Tom reappear, everyone breathed a sigh of relief and then started cursing at the short sellers in the forum.

When Tom was about to arrange the next move, he suddenly found a prompt that the forum could not be connected.

At first he thought there was something wrong with his network. After trying to connect to other websites, he finally confirmed that his home nest had been shut down.

My friend Jim sent a message: "The reason why the WSB forum was shut down was that it glorified violence and released incorrect market information."

"FUCK! These dirty sons of bitches."

Tom couldn't help but get angry. He had simply taken the money to do the work at the beginning, and later he used the 50,000 US dollars to buy Renren's stocks...

He thought the shorts would be dirty, but he didn't expect them to be this dirty!
Unplug the network cable if there is a disagreement!

Tom calmed down and quickly used his Facebook to contact his friends, asking them to hold on and continue buying if they could.

"Guys, believe me, this is the dying counterattack of the bears. As long as we can stop this wave, we will win. With all their sell orders, they will buy them back sooner or later. Once they buy, the stock price will rise!"

However, what everyone did not expect was that when they planned to buy Renren stocks through the trading software, they found that they could not buy them!
As soon as I clicked to buy, an “ERROR!” popped up on the screen.

"We are sorry - this order cannot be carried out!"

What’s even funnier is that some investors posted more information on Twitter.

“Shit, they even cleared the Renren stock code from the trading platform, but Wall Street institutions were not affected at all, they can still short sell!”

At the same time, in the financial news on TV, a short-seller complained to the media: "This group of barbaric guys don't follow the rules at all. This is simply a malicious riot. How can law-abiding stockholders frantically pull up a stock that is being shorted? Isn't this going against the market? This practice of ignoring the market, fundamentals, and trends is simply hooliganism."

At this moment, the share price of Renren began to plummet as a large number of retail investors were unable to buy and the bullish power was severely damaged!
$126.47!

$123.95!

……

"Too dirty!" Chen Pingjiang shook his head as he looked at the message on Twitter. "If you can't win, just unplug the network cable, okay? But Wall Street has always been like this, so it's not surprising."

Bu Housheng on the other side of the screen was anxious, "Mr. Chen, what should we do now? The bull forum has been closed, and the stock cannot be bought. The living force has been dispersed, and more and more people will see the stock price fall and sell it."

Chen Pingjiang shook his head. "It won't be long before the market closes. Even if they can buy, it won't help. I already know what to do."

After saying this, Chen Pingjiang started swearing on Twitter.

[You can’t sell a house that doesn’t belong to you, you can’t sell a car that doesn’t belong to you, but you ‘can’ sell stocks that don’t belong to you!? This is outrageous - short selling is a scam.]

[If you can’t use the US trading platform to buy Renren shares, then use the Canadian or Hong Kong ones! ]

It’s a pity that Chen Pingjiang’s output was unable to raise Renren’s stock price.

As of the close of the day, Renren's stock price was US$124.25.

The next two days are Saturday and Sunday.

Chen Pingjiang gave a bitter smile. It turned out that he was no match for the other party on their territory.

Because they are too dirty.

Eastern Time later that day.

A user of the WallStreetBets forum published an open letter to denounce Wall Street institutions represented by Melvin Capital, saying, "You represent everything I hated during the financial crisis. You are a company that makes money by exploiting other companies and manipulating the market and the media." The user believes that these Wall Street institutions caused great suffering to millions of ordinary people during the 2008 financial crisis, but they were not punished and were rescued instead. Now they are openly and illegally shorting stocks such as Renren and engaging in market manipulation, without learning any lessons from the crisis.

The trading platform also came out to explain that this move was to protect investors. They were worried that retail investors would lose money and restricted users from buying stocks with drastic price fluctuations and frequent transactions. This was to meet the pre-deposit requirement that suddenly increased tenfold by the clearing company.

The Dongjiang trading room was completely silent. The air pressure was so low that one could hear a pin drop on the ground.

After a long while, Bu Housheng on the screen thought for a while and said, "These retail investors are no longer reliable. If the stock price cannot go up on Monday, more and more people will sell their stocks. At that time, the short sellers will return the stocks to the brokerage firms, and there will be no short squeeze."

"But... we can't drive the stock price up on our own right now. Even one or two pieces of good news aren't enough to drive it up."

The situation was obvious at this point.

The losing rate of Renren is more than 90%!

This is actually a conservative number. Based on Bu Housheng's many years of experience, this number may be as high as 99%.

Originally, there were a large number of retail investors supporting the market, so Renren would not win in the short term, but it would win in the long run because short-selling institutions would always buy back the stocks, which would actually help push up the stock price.

But now times have changed!
Once retail investors flee in large numbers, short sellers keep placing orders and no one takes over, it is not impossible that Renren's stock price will drop below 100 when it opens next Monday!

This is the question on everyone’s mind.

what to do! ?

After Chen Pingjiang frowned and thought for a moment, he suddenly turned his gaze to Li Xi.

"If I ask you to be the chairman of Renren, do you think you can handle it?"

Li Xi was stunned when he heard this, and didn't quite react: "Boss Chen, why do you want me to be the chairman? I'm definitely not qualified for it."

"No!" Chen Pingjiang stared at him with sharp eyes: "You must be able to!"

Everyone present, including Bu Housheng on the other side of the screen, was a little confused.

It's already this late, and Chen Pingjiang is still asking this kind of question. He can't just think of running away at the last minute.

"Mr. Chen, I don't understand."

Chen Pingjiang smiled, what was there to not understand.

"At this point, it is almost impossible to increase Renren's stock price by conventional means. But the crux is here. It must go up to give retail investors confidence so that they don't sell their stocks and buy them instead." He paused and continued, "We have to take risks and win by surprise."

Bu Housheng asked, "Mr. Chen, what do you want?"

"Announce privatization!" Chen Pingjiang slowly uttered a few words.

Bu Housheng on the other side was shocked: "Mr. Chen, is this real privatization or fake privatization?"

Chen Pingjiang laughed loudly: "Nonsense, of course it's fake. How can there be so much money if it is really privatized? We didn't make that much money in the US stock market. We might even lose money if we privatize."

"But if it's a fake privatization, you will be charged by the SEC, probably for suspected securities fraud. You won't have to go to jail, but you will definitely have to pay money. And once the punishment is implemented, Renren's stock price will still fall."

Chen Pingjiang shrugged indifferently: "So what? It will take a long time for the market to fall, but the time before that is enough for me to kill the short sellers! And I can make a lot of money by the way."

Bu Housheng didn't know whether to laugh or cry, but he had to admit that this was a great move: "That's right. Once the privatization news comes out, the stock price will definitely rise sharply. Retail investors will definitely not sell, but a large number of retail investors will buy. Further pushing up the stock price, short sellers can only squeeze out the short sellers. With the stock price skyrocketing, they will lose a lot of money in a few days. When the stock price reaches a high level, the stocks purchased by Tianyuan Capital can also be cleared out and make a net profit." (End of this chapter)