How does the GME market trading value affect the rest of the stock market? I get how the hedge fund (Melvin?) stands to be wiped out because their risky bet is getting stomped on by WSB reddit anons, but I don't understand the connection to the broader stock market.
I've seen posts suggesting what's coming could be worse than 2008. How possible/realistic is this?
>I get how the hedge fund (Melvin?) stands to be wiped out
Actually, after reading >>12743089 and checking out the twitter reference, I am even more confused. Does this mean Melvin is not actually in trouble?
The tweet from @ihors3 mentions a research note. Here it is for interested anons…
https://www.shortsight.com/gamestop-shorts-down-5-billion-in-2021/
>(((they)))…don't want to set off a daisy-chain of collateral grabs.
I think I understand, but why would other investment groups (I am assuming this includes hedge funds and their backers…are there others?) get spooked and start grabbing their assets? Is it because if Melvin's backer is at risk of going under (see >>12743335), then other hedge funds using that same backer want to pull out quickly? (and possibly not at a profit?)
>everyone "owns" everyone else's assets
Thanks for the explanation. I think I need to dig moar on what "owns" means in this context.