The Big DD - Part 3

Part 2 left off right as we were about to dive into the events of 2024, here we go…

DFV’s Return

It is now time to dive into what I like to call DFV’s Return, which comprises GME’s two big runs in 2024, and a bonus run on KOSS.

Run Lola Run

The first part of DFV’s Return was set up by a classic boofing. In the after hours of March 26, 2024, GameStop released their 2023 Q4 earnings. Impressively, GameStop had reported a profit for the year of 2023. Despite this extremely bullish news, the stock didn’t seem to react accordingly. Why? Because it was boofed!

The 5 days of red following GameStop’s bullish earnings were boofed until May. Interestingly, April 3rd was the Holiday Extension date from the day after earnings, so they basically just boofed from earnings until then. DFV must have seen this, and he chose to return with a couple days remaining in the run. The FOMO into the stock from his return combined with the boofing helped propel the stock to $80 at the peak.

Although DFV’s return into GME had nothing to do with KOSS, it ran hard on May 13th and 14th too. In fact, it traded 20M volume each of those days, meaning it traded its free-float 8 times over in two days. For what? Just because GME ran?

DFV’s Return: REX 068

The second part of DFV’s Return is a bit more complex. First, GameStop diluted the stock with a 45 million share at-the-market offering. Next, DFV ended up buying 120,000 calls in 5,000 block orders (more on that later). On Sunday June 2nd, DFV posted a YOLO and the world was amazed that he had over $200 million in his account, and almost all of it was in GME:

On June 6th, DFV scheduled a livestream for the following day. On June 7th, we all woke up to the news that GameStop was issuing another dilution, 75 million shares this time. The dilution killed the run, but DFV still went live and put on a show for the world. He also diamond handed his shares and calls through the entire duration of the dilution for us. Here is the hourly chart of the run:

So what was going on behind the scenes, and what was DFV really planning? Well, it’s pretty obvious that DFV’s presence and GME’s spike to $80 triggered a margin deficiency. And just like The Sneeze, the shorts must have filed for a REX 068 extension to fulfill the margin. As you can see, the REX 068 pattern played out perfectly, as the volume of the stock was elevated for the entire duration of the 14 calendar day extension window. GME reversed on June 5th, the first day of the REX window, and by June 6th the stock was going parabolic. DFV had brilliantly scheduled his livestream a couple days into the REX 068 window. Sadly, we’ll never know if he was planning to shake his 8-ball and exercise his 120,000 calls on stream that day.

If you want proof that there are still massive, hidden short positions out there on GME, here it is. If a margin deficiency produced this much volume, imagine if those positions were to ever default and be force liquidated…

KOSS’s Turn

Now we need to talk about KOSS’s massive July 3rd run. Studying this run led me to a pretty big revelation.

Here’s a rundown of what happened:

I posted The GME - KOSS Connection on July 2, 2024 around market close. The post immediately blew up on Superstonk.
KOSS ran 32% in after hours on 178k volume.
The next day, July 3rd was a short trading day due to the holiday. Despite this, KOSS ran and ended the day up 144% with 70M volume (the intraday move at the peak was 330%). Keep in mind, KOSS only had a 5.26M share free-float at the time, meaning the free-float traded 13 times over during that short trading day.
My DD was featured in news articles from three different outlets.
- Reuters article:
- Benzinga article:
- TradingView article:
On July 5th, KOSS re-touched the high on 57M volume. Again, it traded its free-float 10 times over in a single trading day.
KOSS ended up on RegSHO from July 11th to July 19th.

For months I was racking my brain trying to figure out what happened. Many people thought that the popularity of my Reddit post caused the run. They claimed that my post brought retail FOMO into KOSS which triggered a risk-off of short positions. Others claimed that some kind of “algos” picked up my post. On the other hand, a lot of people felt that there was no way a Reddit post could cause a stock to trade its free-float 13 times over in a single trading day. Once I figured out the Boofing Formula, I finally found the truth. The truth is, KOSS was already primed to run on July 3rd, I simply got extremely lucky with the timing of my post.

So what really caused the run? Before we get into the Boofing Table, you need to understand the markets transitioned from T+2 standard settlement to T+1 standard settlement on May 28, 2024. This means that we need to adjust our Boofing Formulas for all trades occurring after that date:

Side Note: You might be tempted to try and cancel out the -1 and [T3+1] in the formula, but remember that [T3+1] can be affected by FINRA Holiday Extensions, so the final, current formula is as shown above.

Let’s take a look at the Boofing Table from the time period that DFV was building his 120,000 call position on GME. The calls that he was buying were GME240621C20, I’ve put the volume and OI of this contract for each day below. In particular, I bolded May 22nd because that was the day that the most calls were bought.

I added two new “Double FINRA Ext.” columns because there were holidays at both the beginning and end of this boofing period (Memorial Day and July 4th).

People like to claim that the market makers did not hedge DFV’s 120,000 calls, not true. It looks like they did in fact hedge his calls, they just boofed it! Here’s an up-close 30 minute chart of the KOSS run for easier visualization:

The combination of the Memorial Day holiday and the transition to T+1 presented a very unique opportunity. I know the Boofing Table above isn’t easy to read, but the main takeaway is that a very wide range of dates would all have overlapping final settlements if boofed. Basically, we have a range of 9 trading days that had their boofing settlements concentrated into a 4 trading day range, with most of it pointing to July 3****rd and July 5th. The remainder of the boofing, such as from the run after DFV’s YOLO, points to July 9th, and KOSS ran that day as well.

During this window, GameStop announced the completion of their 45M share dilution, which was also bullish, and was probably also boofed. I don’t think there’s any way DFV could’ve predicted that. However, did DFV buy his massive call position on these specific dates in May for this reason? Hmm…smart Kitty. Very smart Kitty. 🤔

I know the concept of KOSS running without GME due to the boofing of call buying on GME seems bizarre. But to be honest, if you’ve followed my GME - KOSS Connection series, then you know that just about everything to do with the relationship between GME and KOSS is bizarre. So there it is, this is the best explanation I have. I believe KOSS ran on July 3rd due to the boofing of DFV’s call buying and completion of the 45M dilution on GME. My Reddit post wasn’t the cause, but by dumb luck it probably did catch the shorts with their pants down that day. [🤣](https://emojipedia.org/roll…

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