What I don't get is why anyone would short gme with all the other options out there knowing that one day it would pump. Why not just short something else? Plenty of choices.
It was not just GME. There was a large group of retailers (Overstock, AMC, Bed Bath & Beyond, Nordstom, etc.) that were getting shorted into oblivion so Amazon could roll them all up. In fact, Jeff Bezos (former hedge fund employee) and Amazon are likely the puppet masters directing the Hedge Funds (at least with the retailer stock targeting). If Amazon/Bezos are ever prosecuted for their criminal activity, Amazon (and maybe Bezos) would likely get liquidated from damages. It is likely fraud, and fraud penalty is 3x actual and 200x punitive damages.
All Amazon acquisitions appear to have been shorted to either lower acquisition price or allow Amazon to buy assets out of bankruptcy. GME is attempting to create a retail ecosystem to compete directly with Amazon, and Amazon does not like REAL competition.
Cat got out of the bag to retail investors before hedge funds could get out of their positions on GME (probably by design), so by default it ended up as the posterchild. Also, the relatively low float (prior to new issuance) made it the best candidate to help destroy the hedge funds because retail investors could lock the float at transfer agent and force hedge funds to create many billions of fake shares to continue to suppress the price.
What I don't get is why anyone would short gme with all the other options out there knowing that one day it would pump. Why not just short something else? Plenty of choices.
It was not just GME. There was a large group of retailers (Overstock, AMC, Bed Bath & Beyond, Nordstom, etc.) that were getting shorted into oblivion so Amazon could roll them all up. In fact, Jeff Bezos (former hedge fund employee) and Amazon are likely the puppet masters directing the Hedge Funds (at least with the retailer stock targeting). If Amazon/Bezos are ever prosecuted for their criminal activity, Amazon (and maybe Bezos) would likely get liquidated from damages. It is likely fraud, and fraud penalty is 3x actual and 200x punitive damages.
All Amazon acquisitions appear to have been shorted to either lower acquisition price or allow Amazon to buy assets out of bankruptcy. GME is attempting to create a retail ecosystem to compete directly with Amazon, and Amazon does not like REAL competition.
Cat got out of the bag to retail investors before hedge funds could get out of their positions on GME (probably by design), so by default it ended up as the posterchild. Also, the relatively low float (prior to new issuance) made it the best candidate to help destroy the hedge funds because retail investors could lock the float at transfer agent and force hedge funds to create many billions of fake shares to continue to suppress the price.
🤯