Are we really supposed to believe that reddit is responsible for the circus-like behavior of GME stock?
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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.
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.