>>12717835
>https://boards.4chan.org/pol/thread/305126021#p305130172
First, understand what a short position is: you pay me a fee to rent a stock from me, which you then sell. You have to return the STOCK to me at a prearranged point in the future. You cannot simply give me money for the stock, you must return an actual share of it, or you go to jail. This is not bankruptcy, this is jail shit. Your bet is that you can buy that stock back cheaper than you sold it and pocket the difference.
>this short position is drastically oversold, as in there are more shares that have been borrowed and must be returned than there are outstanding. Estimates of this overselling are typically in the 140-160% range, but because some owners cannot or will not sell their stocks on price action alone, the real number is probably closer to 300%
Hedge funds that own these short positions have fail safes built in that automatically purchase stocks as they rise in price in order to - that's right - hedge their position.
>a number of institutional investors have purchased this stock in the last year, raising its price from a low of $3 (probable that the short position target is $1) to around $20. The shorts respond by both buying shares based on auto triggers, and by buying more shorts, because shorts will hopefully push the price down. Unfortunately for them, they are hubristically digging themselves an impossible hole because the retail investors who do the work the pros won't do when it comes to analysis have decided the stock is worth somewhere between $100 and $800 per share. I'm not going to go into the reasons here, but it's not all rocket ship memes driving this.
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Anonymous (ID: NPg01Ci8) 01/26/21(Tue)03:42:05 No.305126053▶>>305127374 >>305128616 >>305128930
The shorts simply must purchase shares at varying points as their positions mature, and also to hedge their overall position. Today, a big hedge fund called Melvin Capital almost went bankrupt, and was bailed out by two other firms, one of which is a supposedly neutral 'market maker' that has been publicly shitting on GME in an effort to depress the price.
>in the end, here is what matters. As long as the people holding these stocks refuse to sell, the price will just climb higher and higher because the shorts have no option whatsoever but to buy them. Today was nothing. This is a standoff, and if the retail investors, who make up probably 70-90% of the shares that could actually be acquired by the shorts, refuse to back down, then this thing could get really stupid really fast. Systemic risk stupid. There is a reason CNBC was shitting bricks today talking about muh foreign influence and begging the sec to rescue their hedge fund buddies from these internet meanies.
I dont think WSB and whoever else has all these stocks have the stones to bring the system down, but it doesn't matter. This will be a massive wealth transfer, and wealth is almost never transferred from rich to poor. And next time the market fucks up, these people will have even more money to go to war with.
>alternatively, congress or the sec could make a move against the retail market. This could be anything from imposing new rules on WSB, or getting them shut down, to attacks on Robin hood and other trading systems retail investors use. This also represents systemic risk, in that it could produce some very ugly protests or even another Occupy movement, one with teeth this time.
TL:DR Jews fucked up, goyim noticed, Jews currently crying out in pain as they strike. Possible world war 3 incoming, who knows?