It should be.
This GameStop habbening is moronic. But RobinhoodApp's move to block buying is even dumber. They're about to get a regulatory assfucking.
>If we have learned anything from the GameStop saga…it's that collectively, the common people have a shit ton of power.
Wait until you get an analysis of how much the hedge funds (medium sized players) lost compared to how much the market makers (biggest players) made compared to how much the Redditors lost.
>anons, anyone in his right mind would short that bullshit.
Who in their right mind would lend you the stock to short instead of selling it themselves directly to the Redditors?
Buying a stock (a "long" position) is a GAMBLE that the stock will go up, isn't it?
This will cause the hedge fund a bad day. They'll go home in a grumpy mood. But it won't break them unless they put a sizeable fraction of their capital into shorting GME, which they wouldn't have.
>-Melvin MUST return these stocks by Friday
*The contract will have an escape clause to allow them to return cash instead of stock.
>and what if nobody want to sell?
It's unlikely that the Redditors hold all, or even most, of it. Other big players will gladly profit off the short sellers' misery.
In the unlikely event that they really are unable to scrap together enough stock to return to their lenders, the contract allow them to pay a sizeable lump of cash (usually much, much higher than the stock value at the time it was borrowed… but not 100x).
It's also possible that these lenders don't want the Redditors to have a public victory in this and may graciously give the hedges extra time. They gleefully fuck each other when it's business-as-usual. But against the unwashed rabble they'll take care of their own.
> from another investor
Giving permission for this to be done with your money is exactly what investing is.