TBF, you wouldn't end up with 10 or 20M per share, you'd end up with a little more than half after taxes. Yeah, it sucks.
Yes, in theory, infinite squeeze could happen, but I doubt it. The TL;DR of it is it depends on where the big institutional investors sell at that will determine the peak (IMO).
In the end, I don't think it will be ape vs. ape to see who can hold longer for infinite squeeze. There is a circuit breaker held by smart money... retail owns the float, but retail is not the biggest player in terms of shares owned. Blackrock and Ryan Cohen (RC Ventures) are. Schwab owns millions. NYS and CA retirement funds own millions. That's who apes will be fighting against.
I don't worry about HFs going bankrupt- they most surely will. The responsibility for covering those shorts now falls on the OCC and a shared pool of assets funded by all the investment banks (the Collateral Loan Program, aka "Doomsday Fund"). Last research on that put it at about 1.4 trillion before the higher contribution amounts kicked in this month. Citadel can pay out until they're near bankrupt, then call on the doomsday fund. The catch?
Doomsday fund isn't cash. It's packaged securities. Stuff retail can't take, like mortgages and stuff they don't want, like bonds for the City of Detroit that don't mature until 2040. Investment banks and funds can easily be paid that way. Or they could sell the securities on the open market, depressing the market in general and potentially causing other cascading effects.
Once they tap the lifeline, there's nothing stopping them from rerouting transactions through dark pools and netting accounts to cycle shares back through paperhanded bitches again, effectively buying the same cheap shares twice (or three times) to cover the short positions and funding it with securities useless to us. (Technically, that's illegal, it's collusion; but in order to get caught, there'd need to be hard evidence and the SEC would have to put a stop to it, I have no faith they will.)
Could we see some shares going at 7 or 8 figures? Maybe. Will we see a lot? I really doubt it. And, since Citadel is the market maker, once margin call hits (which might have happened last night), they have 35 days to cover. 35 days of weaselling and back alley deals. Buckle up, it's gonna be a fucky ride.
I think there is a mechanism to keep the money from getting routed in dark pools. There are rumors that the QFS is now in place (Simon Parkes - take it for what you will and others.) If true, this keeps the black hats from being able to hide their money any longer. I know nothing about it but found this explanation:
TBF, you wouldn't end up with 10 or 20M per share, you'd end up with a little more than half after taxes. Yeah, it sucks.
Yes, in theory, infinite squeeze could happen, but I doubt it. The TL;DR of it is it depends on where the big institutional investors sell at that will determine the peak (IMO).
In the end, I don't think it will be ape vs. ape to see who can hold longer for infinite squeeze. There is a circuit breaker held by smart money... retail owns the float, but retail is not the biggest player in terms of shares owned. Blackrock and Ryan Cohen (RC Ventures) are. Schwab owns millions. NYS and CA retirement funds own millions. That's who apes will be fighting against.
I don't worry about HFs going bankrupt- they most surely will. The responsibility for covering those shorts now falls on the OCC and a shared pool of assets funded by all the investment banks (the Collateral Loan Program, aka "Doomsday Fund"). Last research on that put it at about 1.4 trillion before the higher contribution amounts kicked in this month. Citadel can pay out until they're near bankrupt, then call on the doomsday fund. The catch?
Doomsday fund isn't cash. It's packaged securities. Stuff retail can't take, like mortgages and stuff they don't want, like bonds for the City of Detroit that don't mature until 2040. Investment banks and funds can easily be paid that way. Or they could sell the securities on the open market, depressing the market in general and potentially causing other cascading effects.
Once they tap the lifeline, there's nothing stopping them from rerouting transactions through dark pools and netting accounts to cycle shares back through paperhanded bitches again, effectively buying the same cheap shares twice (or three times) to cover the short positions and funding it with securities useless to us. (Technically, that's illegal, it's collusion; but in order to get caught, there'd need to be hard evidence and the SEC would have to put a stop to it, I have no faith they will.)
Could we see some shares going at 7 or 8 figures? Maybe. Will we see a lot? I really doubt it. And, since Citadel is the market maker, once margin call hits (which might have happened last night), they have 35 days to cover. 35 days of weaselling and back alley deals. Buckle up, it's gonna be a fucky ride.
I think there is a mechanism to keep the money from getting routed in dark pools. There are rumors that the QFS is now in place (Simon Parkes - take it for what you will and others.) If true, this keeps the black hats from being able to hide their money any longer. I know nothing about it but found this explanation:
https://dinarrecaps.com/our-blog/quantum-financial-system-explained