Comment by [deleted] on 27/01/2021 at 03:56 UTC

16 upvotes, 1 direct replies (showing 1)

View submission: /r/wallstreetbets is making international news for counter-investing Wall Street firms that want to see GameStop's stock collapse. The palpable excitement is off the charts.

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This could easily bankrupt at least one very large, previously successful fund

Did you know that bankrupt firms don't do? Buy back their short positions.

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Comment by crazydr13 at 27/01/2021 at 04:07 UTC

8 upvotes, 1 direct replies

This is a very good point. I recall reading that if the fund can’t cover, it’s on the broker to cover the difference. If it’s a big enough position to bankrupt the broker then that’s a whole different story.