Are we really supposed to believe that reddit is responsible for the circus-like behavior of GME stock?
(www.institutionalinvestor.com)
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It's not a pump and dump, though. Melvin is contractually tied to their shorts which expire friday. They're going to be forced to buy stock at whatever price to cover their position, and the WSB cats are gonna hold their feet to the fire. It's going to cause a recession.
At worst some holding company will get bailed out because they are too big to fail. Well, worst for them. The reddit crowd will get fucked in some fashion I'm sure, as the little guy always does.
Yeah it's for sure gonna have to be a bailout....perhaps hastening this looming hyperinflation situation we're staring down the barrel of thanks to young J pow.
Who's going to be in trouble except this one hedge fund and why? None of the other assets in the hedge are in danger and can be sold with the bankrupt corp.
George Soros and his ilk do this sort of thing to retirement funds every day and the world doesn't end.
They already had to liquidate all their alibaba holdings.
Oh well, someone else bought them at market price, there's millions of trades per day. I don't see any reason this one event is the doomsday some people are saying it's going to be, unless it's going to be used as a false flag used to pull the rug out on the stock market. I don't know of any logical reason it should have that effect unless the big banks plan on dumping things and blaming the Robin Hood'ers.
Do you understand the theoretical situation here? Melvin has 130% of the stocks shorted...their shorts expire friday, which means they're going to HAVE to buy all those stocks at whatever price the people that have the stocks demand. All the WSB cats are holding...Melvin was at -100% equity when the price was at $175; they're done. They're bankrupt. I'm not sure if Citreon is going to have to pick up the shares, or the brokers, but depending on how high the squeeze (starting friday when 60% of their shorts expire) takes the value of the stock, this could easily trickle down to banks. There's nothing they can do about it, either, save some completely unprecidented actions from the SEC. day-trading platforms are already trying to limit trades and stop new investors from getting in on this. The market crash today was 100% entirely because of this issue...people see the writing on the wall.