Here's the story of hedge funds, told in a dress: Let's say you bought a dress at Target for $30. I say to you hey, can I borrow that dress for a few weeks? I'll give you $5, and I'll also give you the dress back. 1/4

You say yes, so I go straight to Target and return the dress. I get $30. I wait a few weeks, when the dress goes on clearance for $15. I buy it and give it to you. I've just made $10 ($15 - $5 I gave you) 2/4

But let's say someone wears the dress to like, the Academy Awards or whatever. Now it quickly sells out at Target, and the only way to get it is for $120 on eBay. 3/4

I have to buy it for $120 because I promised I'd give it back to you, and I've just lost a ton of money. This is what just happened to hedge fund people. And that's the story of hedge funds, told in a dress! 4/4

(there's much more to it, of course, but basically, hedge fund people make money by counting on the value of a stock to go DOWN. If it goes up, they are screwed.)