i watched few video and i finally got it.. lol

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.

it is short seller obligation to return the borrowed shares. if they can't afford to, the creditors can force them to go bankrupt.

from what i understand:-

1. You borrow 10 units stock.
2. Then you sell the 10 units stock at current market price RM10 per unit. So you get RM100.
3. Stock price drop to RM7.
4. You need to return the 10 units stock. Since you already sold it, so you need to buy back.
5. You buy back at RM7 per unit, so total to spend is RM70 for 10 units.
6. Profit = RM100 - RM70 = RM30

how they dumped the GME shares to force down the price.....trip all the margin financing retail investors......

Sounds risky

wolf pack eats the one which is bleeding

it's not only Melvin, combined short position of all hedge funds is -70Billion
if regulators allow WSB to KO one melvin, then WSB become wolfpack to kill other hedge funds which are overly exposed shorting those dying stocks.

Short Seller was greedy.....they thought they can short the shares down to less than $1, and make more profit.

However the risky part, is that, their Short Interest (Shorted Shares / Available Shares) was 140%, about 120% 24 hours ago...probably lower a little by today.........

the Hedged Fund was UNhedged, and totally greedy...........thats why they became risky.....

abuden why Citadel will pay for Robinhood orderflow feed

they can see those stop loss levels

LOL.

All over the internet, the so called Financial Gurus / Experts are blaming the neets over at Reddit for causing instability they say....

https://www.bloomberg.com/news/articles/202...-funds-squeezed

Look closer, and it makes more sense. “Buy what you know” is the mantra of Warren Buffett. So it’s easy to see why a bunch of millennial traders -- trapped at home amid the pandemic, with savings swollen by a lack of opportunities to spend disposable cash elsewhere or government stimulus payments -- could know a thing or two about gaming.

Especially when they approach the market like a video game and their strategies include something akin to what gamers would call a “cheat code” -- in this case, banding together and piling into individual stocks and related options the way a tight-knit team attacks a roomful of dragons in “World of Warcraft.” All with the goal of forcing short-sellers and derivatives dealers to buy the stock, pumping up its price beyond anything a traditional investor would consider reasonable.

pre market price is up......

i think Stockbrokers / Hedge Funds now worried that Washington and SEC starting to pay attention and get involved.....

you are reading the narrative of the EMPIRE.....it includes the Hedge Funds / Stockbrokers / Media (bloomberg / CNBC)

balance your view....go read Reddit / Wallstreetbets.....
its like reading the Star and believe it as the TRUTH from heaven 

hint : key word is the Short Outstanding postion....

BUY GME & AMC, and HOLD THE LINE