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@kermitron @BRKeogh my understanding: there's not anything especially unusual about the short position on GameStop. and GameStop are potentially profiting from this: they currently are in a phase of selling some of their own shares. also a load of the WSB traders are trading via call options.Look on archive.org
Mood +1 🙂
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@kermitron @BRKeogh which are like shorts in reverse - I don't understand the mechanism well enough to explain it, but it involves borrowing money to trade with. increases your potential profit but also means you can lose more money than you started with if the trade goes wrong.Permalink Look on archive.org
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@kermitron @BRKeogh also... a bunch of other wealthy people (eg BlackRock) have substantial stakes in GameStop - some funds will be wiped out (Melvin is the main one) but others will make bank.Permalink Look on archive.org
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@kermitron @BRKeogh and there are reasons to defend the idea of short selling! for one thing, it makes stock prices more accurate. for another, it encourages the kind of research that took down Luckin Coffee (Chinese firm engaging in huge fraud, discovered by short sellers)Permalink Look on archive.org