this post was submitted on 18 Jul 2026
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[–] Melobol@lemmy.ml 174 points 19 hours ago (3 children)

It didn't vanish. The early investors got their money and the naive buyers left holding their empty bags.
This is what they call exit liquidity.

Exit liquidity refers to investors who buy assets at inflated prices, enabling earlier investors to sell at a profit.
These later investors often incur losses as asset values decline.

It is very common in crypto and in volatile tech stocks.

[–] PriorityMotif@lemmy.world 62 points 19 hours ago (1 children)

They also got it on the NASDAQ so if you have an index fund that follows that you bought into it.

[–] boonhet@sopuli.xyz 3 points 1 hour ago

I exited out of all American ETFs earlier this year so I'm feeling good about myself lol

[–] someguy3@lemmy.world 18 points 17 hours ago* (last edited 5 hours ago) (2 children)

Early investors are still in their lock in period.

[–] NotMyOldRedditName@lemmy.world 30 points 14 hours ago* (last edited 14 hours ago) (2 children)

A lot of people really dont understand this.

SpaceX got the money. Its on their balance sheet.

Everyone who bought at $135 IPO price was giving money to SpaceX.

Everyone since then is just trading shares between each other.

The real shitshow starts once insiders can sell, until that happens we wont really know what price the market will settle at.

[–] SaveTheTuaHawk@lemmy.ca 1 points 3 hours ago* (last edited 3 hours ago) (1 children)
[–] NotMyOldRedditName@lemmy.world 1 points 2 hours ago

This is mainly just showing a lot of option conversions / actions that happened because of the merger / IPO.

There's a small sale on the first form in March, and the 2nd form in April

[–] mannycalavera@feddit.uk 7 points 13 hours ago (2 children)

What's a typical lock in period?

[–] Sineljora@sh.itjust.works 2 points 4 hours ago (1 children)

The article says nearly 1B shares can be sold next month

[–] NotMyOldRedditName@lemmy.world 1 points 2 hours ago* (last edited 2 hours ago)

For reference, of all the shares that were sold in the IPO, only 281m are able to be traded, the rest are in their own lockup periods from institutional investors. So 1b potential shares flooding the market in 1 month could increase the float by 3.56x

[–] NotMyOldRedditName@lemmy.world 11 points 9 hours ago (1 children)

Usually around 6 months, but they pulled some shenanigans to make it shorter somehow, but i dont really know the specifics in this case.

[–] ExcessShiv@lemmy.dbzer0.com 6 points 7 hours ago (1 children)

Those shenanigans being "corruption" in this case.

[–] NotMyOldRedditName@lemmy.world 1 points 6 hours ago

I wouldn't rule out possible blackmail or extortion either.

[–] Soulphite@reddthat.com 8 points 18 hours ago

Hey, the orange pedophile is good at doing that too, with his stupid ass coins, and phone and anything really