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> only losers would be the short selling hedge fund That's true for when stock went from $4 to $350, but who are the "losers" when stock goes from $350 to, let

• 35fbe7d3d5b9 6y ago
  > but who are the "losers" when stock goes from $350 to, let's say $7? Nonsavvy retail investors who believed in the hype and bought when the stock was significantly overpriced. Sane retail investors who are about to enter a whole new world of requirements to get a margin account. > Also, who are the "winners" on that $350 -> $7 journey? The hedge funds who were willing to bet on the stock price dropping from $20 and who would've almost certainly increased those bets when the stock was in the $300s.
  • bilbo0s 6y ago
    That's the irony, the hedge funds they were targeting, unless they were run by borderline imbeciles, increased their short bets. It's like WSB designed this attack never having heard of short averaging. People will say that the hedge funds cheated somehow to come out whole, but the reality is that the attack was extremely poorly designed. (And that's being charitable and assuming that this was an attack and not simply an out and out pump and dump.)