[cccc4all]

The Robinhood shenanigans that stopped people from buying GME and allowed selling GME. Melvin Capital claiming they got out of short positions, without any significant changes in short %. The entire financial media propaganda telling people to sell GME. etc.

I didn't say WSB crowd was acting with noble reasons, but they are acting with more than financial interests. If you've read recent WSB posts, lot of the emotional appeal is ideological and class fragmentation, than lolz gainz. And, very few people actually posts in forums, so you have to multiply the sentiment by thousands, if not millions.

The bottom line is the price of GME, it's still above $300. Which everyone knows and agrees is over valued. Why, especially after the turbulent week?

[gruez]

>Melvin Capital claiming they got out of short positions, without any significant changes in short %.

That's not too strange. It's entirely possible for them to close their short position by doing a private sale to another hedge fund. I don't imagine it's too hard to find takers given how inflated GME is.

[throwaway-571]

Don't they have to buy stock to exit the position? How do you sell a "short position" that is hemorrhaging money?

(genuinely curious, I'm learning about this to distract myself from covid-19)

[gruez]

You can offload it to someone else. Say you shorted 100 shares at $50, but the price later goes to $100. One way to exit the short is to buy 100 shares on the open market, taking a loss of $5000. You can also find someone who wants to short, pay them $10,000, and transfer the position to them. Now the short position is off your hands, and the other person effectively entered into a short position at $100. It's kind of like taking over a lease.

[throwaway-571]

I am wondering the same.

Maybe everybody is kinda hoping for the short squeeze? WSB is to stick it to the man but the other market participants?

The stock is shorted above 100%. If the price goes up enough, maybe the shorters will be have to exit their position and then will be the one left bagholding?

It really depends at which price they started the short. $8, $20 $350 $450?

But the puzzle is that "retail" is only a third of the market. a lot of the after hour kept it above 300 on Thursday and on Friday, and that is not the John Q Public doing those trades, so the big fish seem to be in agreement that it might be worth a try to go for the squeeze?