Hedge funds and those that short stocks are heavily regulated. Most importantly, shorting provides some balance to the market and expectations are known, and prices built in. It is expected, as part of the rules of engagement. Economists for decades now have said it is a healthy check-and-balance to a free market.
What happened on Reddit was a new phenomenon of massive market manipulation via social media. The market is NOT prepared for this kind of coordinated effort to manipulate stocks, nor are their rules to address it, nor are the massive price swings pre-baked into the market. This wasn't a few happy basement-dwelling millennials buying some lame Gamestop stocks, it was a grassroots movement to sabotage the ebb and flow of the base of our economy.
While perhaps nothing illegal actually happened, this is pretty unprecedented, and I am not in the "happy camp" that this chit show is happening.
But, you all keep high fiving. Reddit and Robinhood are liberal whorehouses. And that's where this all started.
That should tell you something.
lmao I made an extra 11 k today.
Congrats? No one cares.
You ignored, or missed, the entire premise of my post.
But, you aren't known here for really catching on, so.............
Hahahah poor Duck.... can't seem to find the right side of an issue to save his azz......
I passed on the GME opportunity. I do own a bit of AMC and am watching closely. GME short float at ~120%. AMC short float around 42%.
Hope to make some money on AMC. Nuts that GME short float got so high.
The brokers w/o loaned the stock will make out. Because the shorts were greater than 100% the loaners will get their shares returned and be able to sell them (settle out with others who have not yet closed) for a nice profit.
That is the price of naked shorts... The other option is GameStop could sell treasury stock to the holders of the naked shorts.(at whatever price they choose up to market price, which will probably continue to climb at least until short interest drops below 90%).
-OMotS
"If memory serves fails me..." Quote: ( unnamed) "been prtty deep in the cooler todaay "
Television and radio are most effective when people question little and think even less.
