This entire bull run is being fuelled exclusively by short squeezes - there's nothing fundamentally new behind this insanity
u/Quixotus ·
Reddit — r/wallstreetbets
· June 02, 2026 at 23:35
· ⬆ 239 pts
· 💬 165 comments
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AI Summary
Summary
The post argues that the recent tech/AI bull run is purely artificial, driven by market-maker short squeezes with no fundamental justification.
The author claims AI models are overhyped, based on brute-force computation, and cannot deliver promised returns, making current valuations unsustainable.
Quality assessment: Speculative rant with minimal data; more noise than well-researched DD.
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Semis, software, AI and related sectors. There's nothing fundamentally new that justifies this insanity, this massive leg up since the end of March. Market-makers have absolute control over the quotes and price action and keep propping the quotes endlessly up to squeeze bears liquidity to the last drop, that's the one and only thing fuelling this leg up. It's a pure short squeeze of every tech & IT sector (+ chasing longs) that is fueling this. MMs have no other way to pump this market up, there are no fundamentals behind this, and they don't want this house of cards to collapse (these new derivatives opex (3x/week) for the megacaps is also part of the game, they can sell more gambling tickets, which helps them prop up and sustain these valuations at these levels).
Jensen yells "Marvell!" "one trillion dollars!" and the stock rallies 32% throughout the whole day (+10% after-hours because of short-covering)? This is a pure, concerted effort to drive a short squeeze that props the price up without any real fundamentals behind it. It's all artificial.
MMs got themselves into a corner because this AI-based run escalated out of proportions, these "AI" models won't deliever anything of what was promised, and they have no way to keep the music going without resorting to these massive short squeezes.
All this "AI" sentiment that is purportedly "fuelling" this run is just smoke and mirrors mixed with hysteria. They are trying to control the narrative by releasing articles after articles about how AI will replace everyone's jobs and shit. It's true real AI will eventually do that, but not the models we currently have, and we are \*very far\* away from having anything even close to true AI. Current "AI" models are just based on massive brute-force computation. There's no new physics, no groundbreaking technology, no brilliant discoveries or anything behind them (there's not even a single nobel prize behind the current "technology" because there's nothing really new). It's just brute-force compute at a massive scale. And "AI" companies are at a point where they need trillions of dollars just to make minor incremental improvements to the current brute-force models. We are not getting anything of what was promised anytime soon (sci-fi levels of AI, which is what these valuations are pricing in), and the best we'll get without burning down the whole planet is ChatGPT and variations of it.