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They essentially drove one of wall streets very successful hedge funds of recent years to near failure they had to make a deal for an emergency investment today
by pmorici 6y ago
They essentially drove one of wall streets very successful hedge funds of recent years to near failure they had to make a deal for an emergency investment today to stay afloat. I’d call that winning.
- jeffbee 6y agoThey will probably use the infusion of money to just ride out this raid and make a mint when the wsb bubble pops, which it inevitably will. To say that the hedge fund is "near failure" is the same as saying they did not fail. If they bridge this gap they win double.
- aerique 6y agoI don't know. Just making the hedge fund managers shit their pants is good fun.
- PartiallyTyped 6y agoThey need to buy the stock back and pay interest. They shorted the stock at say 20, or 30. Now they will have to buy it back at 90 and pay interest on it. They have repeatedly resorted to market manipulation to drive the price down and cut their losses, but people are not selling, there do not exist enough shares for them to close their position. They screwed up royally, they doubled down, from 128% shorted stock to 140% shorted stock, then they resorted to blatant market manipulation, using the media and painting a false narrative.
- jeffbee 6y agoWhy do you think they need to close their position? They need to meet margin requirements, which they can do by raising cash. Closing their position is the worst of their options and I don’t see why they would take it. Everyone who is short has to pay the vig every day, so that hasn’t changed.
- PartiallyTyped 6y agoIt costs nothing to hold. They have to choose between a hail Mary and closing.
- jeffbee 6y agoThis is not right. There is a daily fee to borrow any stock. It varies by issue and it changes over time.
- PartiallyTyped 6y agoI was referring to 'us' holding the stock not costing us. They need to pay millions on holding their position open.