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I know what a short squeeze is. The problem is that you may have tons of people planning to exit right around the same time, and there may not be enough tradin
by KMag 6y ago
I know what a short squeeze is. The problem is that you may have tons of people planning to exit right around the same time, and there may not be enough trading volume for them to get out at prices they're happy with.
The fear is that many Robinhood users may not realize that exiting their position may be much much harder than they expect. If the entire value proposition is that Melvin Capital is being squeezed, what happens to the price of GME the moment after Melvin Capital exits their position?
This should not be construed as investment advice in any way.