Short Selling Disasters!

Short squeezes have been all over the news this year as retail investors banded together to spoil the fun for hedge funds in some well-known stocks. Short squeezes are not new though, they’ve been around as long as short selling has. In today’s video we look at the most disastrous short selling fails to see what lessons we can learn. These are some of the craziest finance stories you will ever hear!

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Chapters:
0:00 Sponsor
0:12 Introduction
0:22 What is a Short Squeeze?
1:07 Vanderbilt & The Harlem Railroad
3:11 Northern Pacific Railway
5:10 The Piggly Wiggly
7:55 The Daily Upside - Sponsored Content
8:55 The Dot Com Bubble
10:44 The Volkswagen Spread
13:36 Bill Ackman & Herbalife
14:41 KaloBios - Martin Shkreli
17:32 Tesla
18:39 Gamestop & AMC
20:47 Conclusion

[AlmofidBdarija]

Hands down the best and most underrated financial channel on youtube. No fluff no bullshit no hype . Common sense and facts.

[MisterRedBird]

An important note, $5 million in Vanderbilt's time is about $167 million dollars in today's money

[westvirginiaglutenfreepepp]

"Diversified basket of frauds" what a line. Brilliant.

[usakira]

The only reason I bought AMC at 3ish dollars last year was because I heard The Matrix was coming out in 2021 and I knew I had to watch it on the big screen. That's was my fundamentals lol

[antonomaseapophasis]

12:54 “They were even bigger than Tesla.”
A deadpan, factual observation. Loaded with implication.

[stacystec]

Vanderbilt’s no-mercy approach warms the heart. And it sounds like those officials deserved every bit of it.

[danielschein]

"It turns out Shrekelli managed a diversified basket of fraud."😂😂😂🤣🤣🤣

[gagnepaingilly]

Shorted a percentage of my T$LA holdings, but I'm retaining a portion for the long term. Tesla's growth potential remains robust. I'm considering diversifying my 250K portfolio, but I'm uncertain about managing risks in my next move.

[eyeofchorus]

In the old days, a short squeeze was a manipulation where a bunch of insiders(typically) would hold their long positions in margin accounts while bad news was released, then they would all move their shares to non-margin accounts triggering a mass of margin calls to cover all winthin a 3 day period which would send the stock into the stratosphere into which they would sell.

[acarrillo]

12:12 the fact that that is a VW bug with a body kit to make it look like a porche makes this so great.

[elementstudios]

I watch this episode just to hear you say piggly wiggly repeatedly It makes my day when I am down.

[sisyphusvasilias]

I click for the FIN content. I stay for Patrick's Comedy easter eggs. "Even bigger than Tesla"
(in ref to the biggest Auto stock bubble in history) lol.

[timisaac]

Patrick- Thank you for your video presentation. It is like a college education in 22 minutes. I can't even explain "short selling" to my close friends- yet here you are detailing squeezes of worldwide historical interest!! TY

[MrHamsto]

That Vanderbilt move had me cracking up. It's like I heard him saying, *sigh* "play stupid games, win stupid prizes."

On a similar note related to successful timing, Michael Burry knew the exact entry to his short position once the alphabet mortgages were a thing. "pay option negatively-amortizing adjustable-rate no-pickles sauce-on-the-side mortgage"

[royslapped]

Piggly Wiggly short squeeze. Such a great name for a cautionary tale! Haha

[captcarlos]

Thank you Patrick.
Education with humour, the best way to learn.
Subs are going up and I hope you enjoy and continue.

[Rikimkigsck]

It's a losers game. When you look at statistics majority of short sellers lose money. You don't short a stock because you think it's overvalued. It can be even more overvalued and stay there for years until fundamentals catch

[bunk]

Get home from work, make a cup of coffee, prop my feet up on the desk, and Patrick has a new video out. Life is good.

[brodyalden]

Patrick, you’re the digital nation’s national treasure. I love your videos, your humor, and the content you choose to deliver. Thanks!

[raymondcaylor]

Shorting a .44 cent stock is insane. The most you can make is .44 per share and the most you can lose UNLIMITED.