73 upvotes, 2 direct replies (showing 2)
Yes, but there will be a net transfer of wealth from shorters to shareholders, due to the previously suppressed price.
Comment by DrSpacecasePhD at 27/01/2021 at 20:32 UTC
19 upvotes, 0 direct replies
To add to this, because the hedge fund took such a massive short position (140% of Gamestock shares....) they are on the hook to buy those shares at whatever massive price they skyrocket too. Regular investors can buy shorts, calls, and puts and whatnot on the options market too, but never like this unless they have Elon Musk money or something.
This is not to say that people cannot lose money, but rather than the hedge fund has the most to lose, the fastest, basically because they've been openly manipulating the market, declaring shorts and price targets, overleveraging billions of dollars, and essentially saying "what are you gonna do about it?" whenever small investors pick a stock they love and big money shorts it.
Comment by Zerochaucha at 28/01/2021 at 15:38 UTC
1 upvotes, 0 direct replies
who do you think is going to buy when the bubbles ends? There will be a wealth transfer from idiots that went in late, those certantly will not be wealthy investors