101 upvotes, 5 direct replies (showing 5)
Yea but.. yea but. What originally happened
Comment by flume at 27/01/2021 at 19:29 UTC*
159 upvotes, 2 direct replies
Porsche was r/wallstreetbets in that scenario. Institutions had massively over-shorted VW. Porsche noticed and bought 74% of the available VW stock, creating a "short squeeze" situation because the short sellers *had to* buy VW stock. Porsche also knew that 17% of VW's stock was owned by a government index fund that could not sell it, so Porsche actually held about 90% of the tradeable VW shares, at a time when institutional investors were going to have to buy a ton of those shares to close out their short positions. Porsche asked for a high price and the short sellers had to pay it, netting Porsche a huge profit.
It was called an "infinity squeeze" because Porsche theoretically could have asked for an infinitely high price for the shares, since the number of shares the institutions had to buy was more than the number of shares held by anyone other than Porsche.
Comment by SoutheasternComfort at 27/01/2021 at 17:01 UTC
154 upvotes, 4 direct replies
Price dropped. Some people got their profit and got out in time. And some people didn't lol
Comment by shanebuilds at 27/01/2021 at 18:29 UTC
12 upvotes, 2 direct replies
Porsche sold a massive amount of vw stock for a gigantic profit.
Comment by wilisi at 27/01/2021 at 17:01 UTC
7 upvotes, 0 direct replies
The value went down again.
Comment by KindBass at 28/01/2021 at 02:09 UTC
3 upvotes, 0 direct replies
From what I've been reading (nothing intelligent probably), that big spike might happen on Monday
