Ya, make one without wearing bra

According to financial data analytics firm Ortex, short-sellers - mostly hedge funds - are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies just in 2021 alone!

Add puts and other underwater derivatives, and the real loss will be even greater. And just as striking: Ortex data showed that as of Wednesday, there were loss-making short positions on more than 5,000 U.S. firms.

ZH

how did the redditors jacked the stock price up so high and why cant the investors just sell all the stocks? I assume the investors bought the stocks at very low price...since the stock price is so high now..arent they suppose to profit from it? 

Whats the time limit before the hedgefudge have to pay up? Today at what time?

i also tak faham yst

watch this vide to understand how shorting works

i also tak faham yst

watch this vide to understand how shorting works

i also tak faham yst

watch this vide to understand how shorting works

This is an over simplification. Mohon sifu-sifu here correct me if i'm wrong.

What Usually Happens

- A loaf of bread is priced at RM20/loaf

- You "borrow" a loaf of bread from Ali. Promising to return it back in 7 days (with some interest, of course)

- You sell it to Kassim. Kassim gets the bread, you get RM20.

- After a few days, the price drops to RM5/loaf. You buy a loaf of bread from Raju. Raju gets RM5, you get a loaf of bread, and a balance of RM15.

- You "return" a loaf of bread to Ali plus some interest.

- You end up with some profit (RM15 minus interest to Ali)
What Rarely Happens (but happening now with Gamestop)

- A loaf of bread is priced at RM20/loaf

- You "borrow" a loaf of bread from Ali. Promising to return it back in 7 days (with some interest, of course)

- You sell it to Kassim. Kassim gets the bread, you get RM20.

- After a few days, the price jumps to RM45/loaf. Now you have to make a difficut decision. All options sucks.

Option A

- You buy a loaf of bread from Raju. Raju gets RM45, you get a loaf of bread, and loss of RM25.

- You "return" a loaf of bread to Ali plus some interest.

- You end up with loss of RM25 + interest

Option B

- Hold from buying and keep paying hefty interest to Ali
The extraordinary part with Gamestop is that:
- greedy "investment" company over short Gamestop
- redditors (common people + smaller companies) bought a lot of real Gamestop stock and refusing to sell at any price
- the price gets pushed up gila-gila
- Either option A or B... those investment companies kaw2 rugi

f the squeeze had continued Citadel and Point72 would have had to bail out Melvin Capital again (which is odd since it was CNBC that also reported yesterday that the hedge fund had closed its shorts [fake news by CNBC]... which apparently was not exactly true).

And while $2.75 billion may be pocket change for Ken and Steve, $5 billion starts to look like real money. And what if it has to be followed by $10 billion, $20... and so on. On the other hand, if they did not throw more good money after bad, not only would their initial investment be wiped out, but once Melvin was forced to start selling its longs to fund its margin calls - which also happen to be the names contained in the Goldman Sachs Hedge Fund VIP basket biggest longs for Citadel and Point72 - that's when the real carnage would take place as everyone would scramble to frontrun the upcoming liquidation.

The result would have been billions in losses for Citadel and Point72.

[this could trigger the long awaited stockmarket crash in US - maybe]

article from ZH. comments in brackets are mine.

Yup. There were filled orders for game stop at $2600 usd.

If they didn't stop this shenanigans, the entire stock market would have been in a frenzy..

And you think Melvin capital is the one who has the cash? NOPE..  they took a loan and end up, the banks will have to pay up.

If prices on GME was allowed to continue to rise, it would have bankrupted the banks and caused a financial meltdown.

Robinhood CEO:

"Please forget this happened going forward........ Please? "
KEK  🤣🤣🤣

Yup. There were filled orders for game stop at $2600 usd.

If they didn't stop this shenanigans, the entire stock market would have been in a frenzy..

And you think Melvin capital is the one who has the cash? NOPE..  they took a loan and end up, the banks will have to pay up.

If prices on GME was allowed to continue to rise, it would have bankrupted the banks and caused a financial meltdown.

It is said, Robinhood is a small firm that have limited capital.

They cannot handle big business.

i also tak faham yst

watch this vide to understand how shorting works