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Short sellers illegally borrowed more stock that actually existed. They are the criminals here. Not the people discovering this and taking the criminals for eve
by kahrl 6y ago
Short sellers illegally borrowed more stock that actually existed. They are the criminals here. Not the people discovering this and taking the criminals for everything they have.
- xur17 6y agoIs it actually illegal to do this (not should it be, is it)?
- kgwgk 6y agoNot at all.
- kahrl 6y agoWrong. https://en.m.wikipedia.org/wiki/Naked_short_selling https://en.m.wikipedia.org/wiki/Naked_short_selling
- detaro 6y agoAfter someone has setup a covered short, the stock they borrowed and sold is again on the open market, is it not? And thus could be lent out by the new owner, enabling a second covered short?
- kgwgk 6y agoI understood “this” to mean “borrowing [more stock that actually existed] and shorting”. As your link explains “Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing [...]”
- kahrl 6y agoYes. It’s called naked short selling. It’s been illegal since 2008. https://en.m.wikipedia.org/wiki/Naked_short_selling https://en.m.wikipedia.org/wiki/Naked_short_selling
- kgwgk 6y agoNo, your link is about selling shares you didn’t borrow first. What’s going on here is perfectly legal, as explained in that very same link: https://en.m.wikipedia.org/wiki/Naked_short_selling#%22Normal%22_shorting https://en.m.wikipedia.org/wiki/Naked_short_selling#%22Norma...
- rvz 6y agoCorrect. GME was heavily shorted at ~148% and the institutional shorts got too greedy and /r/wallstreetbets caught them as they failed to close their shorts. Now they are forced to buy back the stock to cover their positions whist everyone is buying and holding GME as the stock price goes higher; rinse and repeat. If anything, the hedge-funds over-shorting these stocks are the criminals which have manipulated them (GME) for years with other hedge-funds bailing them out and the media covering their asses for their illegal activities; as usual. Then they cry and lie with the media: 'ThiS is mAnIpulAtIOn' to /r/wallstreetbets. All I can say is: /r/wallstreetbets is literally robinhood.
- deleted 6y ago[deleted]
- 0xffff2 6y agoIt's entirely possible for short sellers to have legally borrowed more stock than is actually outstanding. There is no evidence that I've seen that they've done so illegally.
- oars 6y agoCan you explain how it's possible to borrow more stock than is outstanding?
- prostanac 6y agoI have one stock in GME, and borrow it to you. You then sell it on the market to somebody. That somebody can subsequently borrow it again to a short seller who will again sell it on the market. Repeat.
- rightbyte 6y agoIf a shorter lends his one borrowed stock to another shorter there will be a chain of shorters for the one stock. Isn't that what happened?