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by betterunix2 1967 days ago
There is no specific deadline for short sellers, only interest payments and margin maintenance requirements. If a short seller fails to meet margin maintenance requirements, they will have to close the position or deposit more assets as collateral within a few days or their brokerage will take action for them. This is the classic short-squeeze scenario -- short sellers are forced to close the position to meet margin requirements, and in doing so they drive up the price of the stock and trigger margin calls for more short sellers.

Eventually Gamestop could be forced to issue more shares to improve the liquidity of their stock, and wsb would be less relevant.

My guess is that in a week or two we will be hearing sob stories from people who bought GME at the peak thinking the price would go higher. At this point the wsb crowd is lining the pockets of hedge funds who are taking advantage of the situation -- unsophisticated investors trying to profit from a short squeeze are an easy target.