they got backing from other hedge funds. And heard govt is stepping in soon

Ni senang cerita.

Gajah lawan semut. Semut menang.

they are allowed to short 140% of the floating shares available, imagine theres 1 million shares, but they are selling 1.4 million shares into the market, where the additional 400k shares come from? magic lo

and because suddenly got so many shares selling flooding the market, it will bring down the price of the share by alot

Delicious seeing those vultures crying lmao

It's not necessarily a bet if you're cornering the market with a large enough war chest - remember that to short you'd sell into spot, and when done with large enough volume will drive prices down.

Some of them are 'bets' while some of them are actual shares.

Hedge funds pretty much borrow those shares to sell, whatever they sell they must buyback and return to the stock dealer.

Problem now is they sold 140% of available shares.

Let's say if you sold at $30, now it's $330.
U buy back at $330, means hedgefund lose $300 per share.

If nobody sells, they'll have to push to $600-$1,000 until those holding GME shares tak boleh tahan wanna take profit, then they could buyback.

Those shares that they "borrowed" has running interest as well.

when america hedgefund attack asia financial crisis where them....in fact china/hk also win soros

a beautiful sight to behold

mean the hedge funds are getting screwed at their own game, NICE

LOL, the extra shares really

hehe david vs goliath.

anyone who says stock market reflect economy must be crazy. it's just a free casino for anyone to bet.

for sure govt will intervene. they wont let another lehmans meltdown happen
not especially when new president just took the throne

answer: there is money to be made

care to dive down the rabbit hole to see how much of freedom democracy is intertwined with stuff like these?

This post has been edited by bumpo: Jan 28 2021, 01:31 PM

Stock market is a place where wealth is transferred from dumb money to smart money

high risk high return

they lost the gamble, so have to pay up.

200k redditors pump the price.
Simple terms,
Hedge fund short the stock hoping when it goes down they will profit.
Example price now 50rm, if drop to 20rm the hedge fund pocket 30rm difference.
But when 200k ppl buy 1000rm each, the price from 50rm go to 90rm. So instead of pocketing the loss they need to pump more money in to cover the bet.

Hedge fund didn't buy the stock but make a bet saying will go down.
So when go up they are negative losses.
Now when everyone pump to 200rm, the hedge fund need to cover 150rm loss in each stock.
So if hedge fund bet 100k unit at 50rm to go down, now since it goes up, that 100k units is at -150rm per unit.

So their losses at 100k X 150rm which is 15mil.

But from what I read, it was from 20 over USD to 150 over USD..

So imagine if you buy 10 mil unit at 20 usd, if price goes down to 10 you will win 100mil USD. Now it's 10mil units X 130usd so your losses will be 1.3billion

These redditors got money to buy the stocks means they rich also?

No pump. They just like the stock.

Also, it closed at 347 last night. After hours is 292.

Bought cheap. Lots of people. So yeah. Even at the current price, people can just buy and literally sit on it. Think of it like a concert/show ticket to watch hedge fund burn.

This post has been edited by whyamiblack: Jan 28 2021, 01:43 PM

Nope. They bought stocks when price is low thanks to hedge fund idiots.

However, they refuse to sell back and are holding onto them while the value of stocks went up, causing said millionaires to shit bricks.

RESPECT FOR YOU

Wanted to get into the action but $200 - $300 per share is too expensive.

Can only ride along with $BB & $NOK.

No. Now is smart money to dumb money.