It's basically the fact that gamestop doesn't really have a cap on how high it could go, because the hedges NEED to buy to cover their shorts. Despite bad reporting, it's very likely the stock is still shorted over 100%.
IF it goes way up, a bunch more funds will get liquidated. It's the liquidations from the margin calls that would tank the rest of the market. That one fund got liquidated recently and sold off what, $9B roughly, and some stocks tanked like 30%. Now imagine that having the possibility of hitting at least half of the funds/banks in this country, if not more.
Once GME moons all hell is going to break lose
I don't pretend to fully understand it but give this a read if you can be bothered.
https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/
Then you’re not paying attention.
A potentially unrestrained infinite squeeze is going to have drastic effects on the market.
It's basically the fact that gamestop doesn't really have a cap on how high it could go, because the hedges NEED to buy to cover their shorts. Despite bad reporting, it's very likely the stock is still shorted over 100%.
IF it goes way up, a bunch more funds will get liquidated. It's the liquidations from the margin calls that would tank the rest of the market. That one fund got liquidated recently and sold off what, $9B roughly, and some stocks tanked like 30%. Now imagine that having the possibility of hitting at least half of the funds/banks in this country, if not more.