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> My biggest concern with these plays, at this point, is that they're not taking into account the possibility of bankruptcy. Whose bankruptcy? The WSB crowd ar
by rualca 6y ago
> My biggest concern with these plays, at this point, is that they're not taking into account the possibility of bankruptcy.
Whose bankruptcy? The WSB crowd are very vocal in their goals of bankrupting hedge funds who have a lot riding on forcing gamespot's stock price to plummet.
- 015a 6y agoThe funds. There's an ocean of difference between "we finished the year down 98% but we met all of our obligations" and "we finished the year down 100%, and we also failed to meet our obligations". Those obligations include the repurchase and repayment of short-sold stocks sold by the brokerage. WSB wants a short squeeze. They got that. But, their theory is that it isn't over, and if they get the 10x+ returns in the coming weeks (I don't think they will, but lets say they do), then these funds are potentially looking at commitments that approach their AUM, and a nasty margin call. That's a real recipe for shutting down, and if that happens, there is no more short to squeeze. Everyone loses.
- deleted 6y ago[deleted]
- rualca 6y ago> That's a real recipe for shutting down, and if that happens, there is no more short to squeeze. Everyone loses. It seems you didn't understood that for the WSB crowd the definition of winning is getting these funds to shut down, regardless of their personal losses. This is no longer about money. This is a protest against a rigged system.
- bostik 6y agoIn a sibling thread someone already coined the term "spite investing". I'm personally into boring index and ETF vehicles, but I am stocking up on something right now: popcorn.