Read on Twitter
"Gamestop Short squeeze"
A bunch of WSB gamers, with nostalgia for their old fav game store, noticed on a public filing for the year end quarter that a fairly large hedge fund was epicly massively hugely shorting $GME.
Thread
https://twitter.com/BarstoolBigCat/status/1354184889273380864
A bunch of WSB gamers, with nostalgia for their old fav game store, noticed on a public filing for the year end quarter that a fairly large hedge fund was epicly massively hugely shorting $GME.
Thread
https://twitter.com/BarstoolBigCat/status/1354184889273380864
With the price low already the WSB guys decided they would ban together to buy the stock, knowing that if it pushed the short out of profit the hedge fund would have to buy shares to cover their losses.
For every $10+ increase in the price of $GME the hedge loses close to a billion dollars. So it forces their hand to buy more shares, which causes the price to go up even more. Making the guys who organized the squeeze and bought the stock very cheap millions of dollars.
This is honestly an interesting event in trading history. Overall it will be dangerous for any hedge fund or company to be short a stock through the end of a reporting quarter. If they have to publicly disclose the position.
It also shows that within the bounds of the law it is still possible for the little guy to win in the big market.
Although I'd bet in the near future the laws related to this will change to further protect these big hedge funds from these reddit bullies
.
Although I'd bet in the near future the laws related to this will change to further protect these big hedge funds from these reddit bullies
.
Also I think overall this is dangerous for the market. As I think it will lead certain financial institutions to remove their short positions. And a market with no shorts is a market that crashes violently.
Let's just say I am not sure that hedge fund with make it. And the price is still going up in after hours trading.
For beginners wanting to read what a short squeeze is.
I also feel like I need to add that at some point the short will expire and the game will be up and the stock will tank and it will probably be the end of #GameStop.
I know if I was one of their long time shareholders I'd be cashing out now.
I know if I was one of their long time shareholders I'd be cashing out now.
