| > do people still think Efficient Market Hypothesis is a thing? Sure, it's a thing. But underdamping is also a thing. And information diffusion is also a thing. The efficient market hypothesis doesn't say "markets are always efficient, and prices only move based on new public information." Rather, that information diffuses into the market. Some idiot hotshot billionaire short-seller overshorted GME, and it took time for that information to spread to other market participants. Then, once the information was there, it took time for the upward price impact to un-do the impact of the short. And it is going to overshoot the true asset value because the market is underdamped -- contrarians aren't going to step in immediately, and longs are still waiting to put in a clear indication of a top. The real joke here is that Plotkin went so heavily short a name that was trading at a mere fraction of its annual sales. Personally I think there are two SEC rules that should come out of all of this: First, shorts should be reported alongside longs in 13F filings. Second, there should either be a limitation on re-hypothecation for heavily shorted names, or short sellers should not be able to add to new positions once shorts go beyond 100% of the float. |