Then the anons on reddit got wind of their evil manipulations, came up with a way to screw the greedy manipulators by using the Short sell strategy against them. This could only be done in great numbers and only if they could all work in cahoots, which the internet now allows. If this strategy works, they will have out-manipulated the manipulators and can do this to WallStreet over and over, throwing off the control collars of the 1%. That is returning power to the people. Is that correct, Stockanons?
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Not quite, no....
So When Exactly do these hedgefund pirates have to pony up?
K so when you're shorting, you pay a borrow fee (the interest I mentioned in my previous comment) which can change from day to day. Right now that fee on $GME is between 20-80%. Which is as high or higher than most credit cards. Per day. The longer you have to hold your position, the more it costs. Now imagine you're a multi-billion-dollar hedge fund with millions of shorts entered.
Now you understand how they lost $5 billion dollars in a single day.
Eventually it either costs too much to maintain, and you have to close your position for a loss, or you go bankrupt.
Not only that, but there's rumors that other hedge funds are still submitting shorts on GME against Melvin and Citadel. They're not only fighting average Joes online but also fighting off other hedge funds and investment groups.
Today is significant as it's a day when lots of these 'options' expire. Likewise, Monday will also be very significant. However, it could take weeks or even months to finish the short squeeze fully. Read up on the short squeeze of 2008 with VW for some similarities: https://www.autoweek.com/news/industry-news/a35340727/heres-how-the-gamestop-short-squeeze-is-like-the-vw-squeeze-of-2008/
Thanks for the info
Isn't this kind of like what happened in the movie Wall Street where they basically manipulated the stock to force Gekko to sell his shares? Or is that something different?
This is, banks breaking the law for hedge fund buddies. Then getting caught. ... This is: 1. They borrowed shares that don't exist. At 23% interest from a bank. 2. They now have to buy real shares that don't exist or liquidate their business. 3. They get proper fucked.