Quote:
Originally Posted by arrowheadnation
Someone might have to clarify, but the way I understand it, the hedge fund Melvin Capital was a deep short seller of GameStop. A bunch of kids from reddit with day trading accounts then proceeded to short squeeze the stock and in effect, nearly bankrupt a $14 billion hedge fund in the process. The Mets new owner tried to bail it out yesterday with a $2.7 billion infusion, but that went "poof" in a matter of hours. It's a little double edged because there were probably everyday joe's that had their retirements tied up in that fund, but on the flip-side that was super unethical of the fund manager for tying the bulk of their funds up in short sells....did I get the gist of it?
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Short sells aren’t necessarily unethical.
But (at least the ****ers on WSB believe) Citrion shorts stocks, then releases negative press releases about the company and tries to drive the price down.
Now apparently they’re trying to do the same thing to WSB and (apparently) posting videos claiming to be WSB investors saying they’re getting out, trying to stem the tide.
As a dude selling commodities, market manipulating by big players is a sensitive subject for fat boy here.
Quote:
Originally Posted by FD
A few hedge funds with big short positions will lose, but most of the short squeeze is being pushed by other hedge funds. They are just using the redditors as cover. There isn't enough money on WSB to execute this big of a trade, it is mostly coming from some different hedge funds that are making out like bandits while the vast majority of the redditors are getting in late and will be left holding the bag.
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I don’t know about that entirely. You’re probably right. Competitors are probably raping Citrion and whatever the other one is and using Reddit for cover. But some of those WSB jackasses have real money. Guys have posted screenshots of million dollar account balances. And a lot of those guys made ****ing mountains of money buying goddamned Tesla calls while it was running, and they’re taking the YOLO approach. If they’re actually doing it while they’re posting memes it can amount to serious cash. Especially if the shorts are scrambling.