A Wall Street Genius’s Final Investment Playbook
Chapter 180

The number of subscribers to WallStreetBets (WSB) skyrocketed from 10,000 to 100,000 in just one week.

If you include those who only browsed without subscribing, the actual number of users would have been even higher.

Among them was a college student.

"Should I give it a try too?"

He had recently sold his used car and saved up $3,000.

It was a significant amount for him, and putting it all in felt risky.

‘Maybe just $500…’

Just as he was about to settle on that, a new question crossed his mind.

Ha Si-heon had definitely taken a short position, but most of the verified posts on WSB were about put options.

Upon searching, he found that a put option is the "right to sell a stock at a high price," a strategy that bets on a price drop.

It was similar to short-selling, but subtly different.

Feeling confused, he finally posted a question on WSB.

<Valeant is gonna crash hard. Which is better, short or put?>

Comments started flooding in immediately.

-Start with puts. Unless you want to get margin called and end up hiding in your parents' basement.

-Another noob just joined. Short = if stock rises, you're screwed until you max out your mom's credit card. Put = only your invested money disappears.

-To summarize: Put = training wheels. Short = bankruptcy speedrun.

Also, if you don’t verify your position, you get banned. Paper hands get a permaban. (Paper hands = those who only talk big about investing) – @Admin Ban them if there’s no verification in 24 hours.

-My options account isn’t even approved yet. 24 hours is a bit…

Excuses didn’t work, so he ended up getting suspended for a week.

However, even if he couldn’t post, he could still read.

So, after thoroughly scanning the threads, the student decided to follow one user's trade exactly.

He ordered one contract of a put option with a $4.44 premium, $100 strike price, and 30-day expiration.

After placing the order, he had the urge to verify it, but that wasn’t possible on WSB.

So he posted on his own Twitter instead.

—I resist the greed of Wall Street. I will hold the 1% accountable.

#ResistThe1Percent #ShortSqueezeWar

After uploading the tweet, he checked Valeant's stock price again.

It had dropped sharply once but was now stuck around the $100 mark.

Even after a day or two, it remained the same.

This frustrating stagnation made the student anxious.

‘Did I join too late…?

What if I had jumped in a week earlier?’

<Is a crash within a month possible?>

He posted this question on WSB out of nervousness, and hopeful replies quickly poured in.

-Sean hasn’t even started the engine yet. The real bomb hasn’t dropped.

-He’s sitting on a $1 billion position. You think this is the climax?

-Valeant’s earnings are a joke if you look closely.

–Their “growth” is just hiking up drug prices.

-Actual growth = zero.

-Next target = destroy their business model?

They’re riding the wave of victim public sentiment.

Some replies suggested that Ha Si-heon might highlight the issue of the victims.

In fact, TV programs were already broadcasting stories of patients suffering from Valeant’s drug price hikes.

Desperate testimonies from Wilson's disease patients.

There were even exposés saying Valeant’s patient assistance programs were just for show.

Later, Ha Si-heon appeared on a broadcast and directly addressed the issue.

[This is a systematic attack on healthcare accessibility. If such profiteering becomes rampant, the U.S. medical system will fall into an irreversible crisis.]

However, to be honest, the college student was skeptical.

‘Will the stock really drop just because of this…?’

Then, a week later,

This headline dominated every news outlet.

<U.S. Congress to hold preliminary hearing on Valeant drug price hikes. Witnesses to be summoned.>

Politics had begun to move.

And unusually fast at that.

Of course, there was a reason for this.

[After the election, it seems the ‘lame-duck Democrats' want to leave behind achievements before handing over power to the Republicans.]

Politics always craves public attention.

And because this issue was so hot, politicians rushing to take the lead only accelerated the situation.

As a result—

92.64

91.54

90.30

Valeant’s stock price began to plunge daily.

The college student checked his account, holding his breath.

The intrinsic value of his put option was $1,070.

After subtracting the $500 premium, his net profit was…

“$570?”

This was his return in just a week.

‘Please, drop more!’

But the stock halted around the $90 mark.

After all, the news was merely about a preliminary hearing.

It wasn’t actual regulation, only a potential risk, so it wasn’t enough to shake the foundation of the company.

Seeing the stock stabilize again, the student bit his lip.

‘I should’ve just put in the full $3,000…’

He couldn’t help but regret his timid decision.

Meanwhile, on WSB, those who had made bolder bets were bragging.

―Started with $45K, now $156K. Lambo reserved.

—YOLO’ed with my roommate’s rent and made $17K. Now I’m the landlord.

—2nd year fry cook: $3K → $23K. Preparing to quit.

These success stories began spreading beyond Reddit to major platforms like Twitter and Facebook.

—I made $3,200 this time. More than the money, I’m proud I got to punish a greedy corporation. #JusticeServed #ShortSqueezeWar

—Came home from work and saw $2,200 in my account? Earning money and serving justice — two birds, one stone! #ResistThe1Percent

In 2014, Reddit was still a small community, but Twitter and Facebook already had billions of users.

The fact that these verification posts began appearing there meant more people were seeing them.

And as new people saw the posts, they all began to think the same thing.

‘Should I give it a shot too…?’

***

[Recently, short-selling and put option trades among individual investors have surged. Particularly, small lot trading has increased by a staggering 1,114%, raising concerns.]

‘Small lot’ referred to small-scale trades mostly made by retail investors.

[Though the amounts aren’t large, this spike in trading volume is concerning. Why is this gambling-like investing trend spreading?]

[Social media has a big impact, but generational traits can’t be ignored either. Today’s 20-30s are a generation deeply distrustful of the system due to the financial crisis.]

[On top of that, unlike baby boomers, this generation has very little disposable income. Most are drowning in student debt. Between 1980 and 2010, college tuition rose by 745%, while wage growth remained stagnant. With barely any money to invest, it’s almost natural for them to aim big with small funds.]

[It’s a lot like playing the lottery.]

[That’s exactly right. Because it’s difficult to expect big profits through traditional investing, people are easily lured by urban legend-like success stories.]

The host looked into the camera with a serious expression.

[Let me say this again: short selling can lead to unlimited losses if it fails, and with put options, you risk losing your entire investment if the target price isn’t met within the deadline.]

The media kept warning about the risks of the current issue.

However, these warnings didn’t reach the retail investors.

With testimonial posts like “I made thousands of dollars in a week” flooding in, no one was listening.

The college student, too, had now bet his entire $3,000 in spare funds.

‘Will it really drop within a month…?’

There was just about a month left until the option expired.

If the stock didn’t fall by then, the $3,000 would vanish.

His hands trembled at the thought…

‘Orca will make something happen.’

Ha Si-heon had also taken a short position.

It was clear he would take action to push the stock price down.

And soon, as expected, Ha Si-heon moved again.

But this time, it was in a different way than before.

[We need to reflect more deeply on corporate ethics. Many pension funds still haven’t adopted ESG standards. The owners of pension funds are the people. So, how many of those people would agree to invest in a company like Valeant?]

This time, his target was pension funds.

Thanks to this, the student was reminded of his university’s endowment fund—something he had completely forgotten.

“No way…”

He usually didn’t care, but it turned out that the fund published an investment report every quarter.

When he hurriedly looked it up—

Valeant Pharmaceuticals.

The bold letters filled his vision.

‘What? My tuition money went to a company like this?’

A surge of anger welled up.

He had bet all his spare money on this put option.

And yet, his university was supporting the enemy with his tuition money?

His rage erupted on social media.

—Loyola students, did you know our tuition is being used to fund a company that exploits patients with rare diseases?

Similar exposés spread rapidly across social media.

—Teachers of Missouri, are you aware that your retirement funds are invested in Valeant?

—Public employee pensions are shareholders of this predatory company! We demand immediate divestment!

The enraged public began demanding that pension funds liquidate their holdings.

The backlash was especially intense among college students.

Protests calling for divestment sprang up across campuses.

“The school must listen to our voices!”

“We have a right to decide how this fund is used!”

“Justice only happens when we take action!”

Cries for justice shook the campuses.

The timing couldn’t have been better.

2014 was already a year when students were demanding ethical investing from universities.

That same year, students at Harvard and Stanford had called for divestment from fossil fuels.

If they could rise up for long-term environmental concerns…

Then it was only natural for students to mobilize when their entire allowance was riding on puts.

The protests were intense.

This movement again caught the media’s attention.

[Recently, protests calling for divestment have continued on university campuses. How likely is it that pension funds will actually withdraw from Valeant?]

[Very likely. With both the protests and the preliminary hearing happening at once, Valeant’s public image has taken a massive hit. Pension funds are highly sensitive to reputational risk, so it’s likely they’ll soon sell off their holdings.]

This news dealt a direct blow to Valeant’s stock price.

83.07

82.95

81.39

This time, the decline didn’t stop.

Trading volume surged, and the stock plummeted.

Momentum traders saw the strong downward signals and joined in.

72.03

71.20

70.13

The stock had now fallen to the $70 range.

Considering it started at $130 just a month ago, it had nearly halved.

The college student, with trembling hands, checked his account.

His profit was an astounding…

“$14,922?”

A number he could hardly believe.

Meanwhile, WSB was in full celebration mode.

-Hit $1.2M! Naming my yacht “Sean.”

-Bet the house loan. Wife said I was crazy. Now she’s asking if we can buy the neighbor’s house too lol

-Got scolded by my boss for being late 5 times. Bought puts that day. Now the boss is my valet.

Success stories flooded social media.

-Paid off all my student loans! Justice is sweet.

#ShortSqueezeWar #ThanksOrca

-700% return confirmed. I'm quitting LinkedIn now.

#OrcaSquad #JusticeServed

To these people, Ha Si-heon was no longer just a symbol of investing.

He was a righteous man standing against predatory corporations, a savior who delivered miracles to ordinary people.

-Mom, I’m telling you, Jesus is on Bloomberg!

-Saint Sean turned water into Lambos, student loans into profit, and credit card debt into yachts…

-We place our bets on Sean’s shorts today. May he bless our puts! Lambo-men.

-Let’s make Saint Sean’s birthday a national holiday!

***

Meanwhile,

There was one person who watched the entire situation with cold detachment—

It was Ackman.

He had been momentarily shaken by the public’s unexpected unity and its destructive power.

But in his mind, the next move was already being calculated with precision.

“Fools.”

His tablet screen was filled with the cheers and frenzy of the retail crowd.

They were intoxicated with their victory.

-Anyone who thinks it’ll fall further, hands up!

-Going all in on a double down!

-10x leverage, all in. Next stop: yacht or Wendy’s shift

-Losing my job if I’m late again, so I bet my last paycheck. Don’t even care now if I get fired lol

Ackman stared blankly at the screen, then slowly curled his lips into a smirk.

“They really don’t know anything.”

The crowd didn’t know.

That Ha Si-heon had already used every powerful weapon he had.

“There’s nothing left for him to pull.”

Short-selling required skill.

And the most fundamental tactic was to shake the company’s fundamentals.

But Ha Si-heon’s strategy only provoked ethical and political concerns, causing short-term chaos.

That was a fatal mistake.

Because his attack never touched the company’s essence—its value.

Valeant’s growth formula was still intact.

In the world of short-selling, that difference was critical.

“Value investors are still holding. They’ll likely see this dip as an undervaluation and start buying soon.”

Ackman muttered to himself with satisfaction, then turned to his side.

Next to him stood a visibly tense PM.

“Is everything ready?”

“Yes. We can execute as soon as the date is set. But…”

The PM hesitated before continuing.

“Are you really going through with this? The entire country will label you a villain.”

“I don’t care. I’ve been treated like a villain from the beginning anyway.”

Ackman let out a soft chuckle.

There was no frustration or hesitation in that laugh.

“The retail crowd already cast me as the bad guy. They need a villain to justify their gambling.”

“But this plan is extremely aggressive. The backlash could be severe.”

Ackman raised his wine glass and turned his head slowly.

In that moment, his gaze was unwavering and firm.

“It’s fine. When the disaster begins, the public will blame Ha Si-heon more than me.”

His voice brimmed with confidence.

“Betrayal by a hero always stings more than harm from a villain.”

Ackman slowly raised his wine glass and drained it to the last drop, then murmured quietly:

“It’s time to show the ants the real danger of short-selling.”

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