I know what a short is. It's when you "borrow" a share for a certain time before selling it back, expecting the price to drop. I was following it a bit back when it first started and i remember reading that they were delaying the inevitable squeeze by borrowing borrowed shares, and that there were many more shares in circulation than actually existed. What's to stop that from happening again?
From what I’ve read, there are tons of naked shorts out there, hedge funds are swapping shorts and manipulating the price with puts and calls. If they try to actually buy shares to cancel out their short positions, they will lose a fortune because the current price is way higher than what it was when they borrowed the stock. They are just trying to make it one more day, when the float locks, price goes up, and they can’t pay their margin requirements. That’s when the next squeeze occurs. MOASS.
Can't they just "short the shorts" to wait out the short squeeze? Sorry if this sounds retarded, I don't know much about stocks
It doesn’t work that way. Read up on short definition, it’s not too hard to understand.
I know what a short is. It's when you "borrow" a share for a certain time before selling it back, expecting the price to drop. I was following it a bit back when it first started and i remember reading that they were delaying the inevitable squeeze by borrowing borrowed shares, and that there were many more shares in circulation than actually existed. What's to stop that from happening again?
From what I’ve read, there are tons of naked shorts out there, hedge funds are swapping shorts and manipulating the price with puts and calls. If they try to actually buy shares to cancel out their short positions, they will lose a fortune because the current price is way higher than what it was when they borrowed the stock. They are just trying to make it one more day, when the float locks, price goes up, and they can’t pay their margin requirements. That’s when the next squeeze occurs. MOASS.