3 ms·
Since short sellers often provide liquidity to the market, if this happens at a large enough scale, it could push hedge fund shorts out of the market and then w
by Threeve303 6y ago
Since short sellers often provide liquidity to the market, if this happens at a large enough scale, it could push hedge fund shorts out of the market and then we could have a return of liquidity problems like during 2008.
Though some of these short operations do target companies with the intention of taking them over at a bargain, it's fair to say that due to the pandemic and the lockdowns that a short on mall related companies is a reasonable move. I guess WSB is ultimately taking advantage of the lack of updating the short position with the emergence of a vaccine.