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> Who is this hurting, exactly? I think the narrative around this trade is a bit simplistic, and a lot of people in it are likely to wind up disappointed by th
by AlexCoventry 6y ago
> Who is this hurting, exactly?
I think the narrative around this trade is a bit simplistic, and a lot of people in it are likely to wind up disappointed by the details it ignores.
For instance, with potential losses this big, counter-party risk is huge. Even if everything works as the trade intends, and the losers have to chase after an ever smaller pool of increasingly expensive GME shares, it may make more economic sense for some of those losers to declare bankruptcy instead.
- nrmitchi 6y ago> it may make more economic sense for some of those losers to declare bankruptcy instead. This is a thing that goes against the narrative here, where the narrative is "Melvin has $13B, we can take it all!". Even if you assume that is true, and you can somehow push this already $25B cap company high enough, there isn't enough money in that $13B to allow all shares of GME to sell at the current price. If the entire premise here is "Melvin is screwed, we have him by the balls, and he has $13B", then it seems that the max would be... $13B. Past that, you're no longer "taking from Melvin"; you're taking from the people who don't get out before you do. There is no bankrupcy judge in the world that will say "Okay Melvin, sorry, but you owe WSB a thousand trillion dollars".