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> why hedge funds will hold out longer than the mob which will blink first I'm pretty sure the real situation is far more complex than the simplified story tha
by brazzy 6y ago
> why hedge funds will hold out longer than the mob which will blink first
I'm pretty sure the real situation is far more complex than the simplified story that is passed around and the final result therefore not nearly as inevitably positive for the mob. One possibility is that some lenders of the stocks may accept a guaranteed lower direct payment instead of insisting on getting the stocks back and risking that the short seller goes bankrupt and they get nothing.
> why people who bought in at 200/300/400 will lose their YOLO money
Mostly because there is absolutely no guarantee that they will be able to sell in time when the crash comes. Many of them don't even seem to understand how stock trading works.
In extreme situations, a stop loss order to sell at 500 could easily get executed at 100 because nobody is actually willing to buy anywhere in between at that time.