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by Tinyyy 1973 days ago
> Hedge funds do this to each other every day.

Do you have a source for this?

2 comments

If it were not so shorting wouldn't be considered high risk...
If you remove the short squeeze part. It is still a pump and dump. Someone is going to be holding the bag when the stock comes back down. That is going to be retail investors.
short positions are inherently higher risk than long positions because your upside is finite, and the downside is unbounded.

(this is why you might want to... hedge your shorts.)

Start with Matt Levine or Michael Lewis if you want to see how games are played.

For eg, here’s an insane one from last fall on negative oil futures:

https://www.bloomberg.com/opinion/articles/2020-08-04/some-p...