7 ms·

> and, frankly, threatens to take down the entire stock market Could you expand on that?

rednerrus 6y ago
GME shorts have essentially written a blank check to the market. They don't have shares to cover their shorts. When it's time to cover, they'll have to pay whatever price the market demands. In order to cover, they'll have to liquidate their other holdings. Liquidating large holdings in a market like this could cause all kinds of problems.
- casperc 6y ago
  How do we know that there are shorts and the amount of them?
  - darig 6y ago
    All trades are public... just like bitcoin. The shorts were already due... deadlines passed and extended and extended again. The market making bankers are the same ones selling the short shares, they investigated themselves and decided to give themselves a break. The market is totally rigged.
  - tanto 6y ago
    SEC numbers and a few other sources. I read somewhere that currently the estimated number of shorts is 4x actual number of actual shares. Not sure if it's true though.
  - toomuchtodo 6y ago
    Some speculation regarding short laundering: https://www.reddit.com/r/GME/comments/lr33yp/etfs_containing_gme_average_daily_short_volume/ https://www.reddit.com/r/GME/comments/lr33yp/etfs_containing... GME just hit $170/share after hours, having closed around 90 an hour ago. Edit: $180/share Edit 2: $200/share
    - david927 6y ago
      Edit: "smoking" --> "on fire"
  - klaudius 6y ago
    https://isthesqueezesquoze.com/ https://isthesqueezesquoze.com/
- mr_toad 6y ago
  > They don't have shares to cover their shorts. Once you cover a short it isn’t really a short anymore. The whole point is to speculate.
- UncleMeat 6y ago
  > When it's time to cover That isn't how shorts work. You pay interest on the loan. It isn't like at day X suddenly you owe the share back or else you go to prison.
  - quickthrowman 6y ago
    Credit isn’t limitless.. margin calls do happen
    - UncleMeat 6y ago
      They do, but not in bulk. The idea that suddenly, all at once, the people short GME will instantly need to buy shares to cover their shorts is just not how it works.
      - david927 6y ago
        It's a "gamma short" and it can happen.
  - adriancr 6y ago
    shareholders can call back shares at which point shorts have to find other shares or buy at market value. I think we're already seeing shares called back since likely gme wants to do a stock offering on a good valuation. There's also not many shares left to short... so it is going to be interesting.
    - water8 6y ago
      This is nonsensical. Just because the stock is super high doesnt mean anyone is going to actually accept it as collateral for funding. Way to volitile
      - adriancr 6y ago
        Whats nonsensical? I'm a shareholder. I can call back my shares if I want and refuse to lend them. This is what Michael Burry did when he bought a stake. The rest is assumptions. > Just because the stock is super high doesnt mean anyone is going to actually accept it as collateral for funding. if they issue direcly on the market it is going to get bought...
- cwhiz 6y ago
  Shorts aren’t timed. What could happen is that holders call for shares back. However, that didn’t happen at GME@$500 so I doubt it will happen here.
  - Black101 6y ago
    It was at $168 at the close of extended hours... who knows where it'll go tomorrow.
- teawrecks 6y ago
  The implication being that the handful of parties who hold shorts in GME are "singlehandedly" responsible for propping up the value of the entire stock market? Seems unlikely...
  - adriancr 6y ago
    That's a narrative meant to push a bailout of hedgefunds - translated - "they're too big to fail, market will crash"
  - david927 6y ago
    A deer jumping in front of your car and totaling it doesn't imply that the deer is keeping the car running. That said, I'm all for what's happening with $GME. They've been cheating the public for years and now the public has turned a cheat (naked shorts) around and is going to get rich off of it. Fair play.

GME shorts have essentially written a blank check to the market. They don't have shares to cover their shorts. When it's time to cover, they'll have to pay whatever price the market demands. In order to cover, they'll have to liquidate their other holdings. Liquidating large holdings in a market like this could cause all kinds of problems.

casperc 6y ago
How do we know that there are shorts and the amount of them?
- darig 6y ago
  All trades are public... just like bitcoin. The shorts were already due... deadlines passed and extended and extended again. The market making bankers are the same ones selling the short shares, they investigated themselves and decided to give themselves a break. The market is totally rigged.
- tanto 6y ago
  SEC numbers and a few other sources. I read somewhere that currently the estimated number of shorts is 4x actual number of actual shares. Not sure if it's true though.
- toomuchtodo 6y ago
  Some speculation regarding short laundering: https://www.reddit.com/r/GME/comments/lr33yp/etfs_containing_gme_average_daily_short_volume/ https://www.reddit.com/r/GME/comments/lr33yp/etfs_containing... GME just hit $170/share after hours, having closed around 90 an hour ago. Edit: $180/share Edit 2: $200/share
  - david927 6y ago
    Edit: "smoking" --> "on fire"
- klaudius 6y ago
  https://isthesqueezesquoze.com/ https://isthesqueezesquoze.com/
mr_toad 6y ago
> They don't have shares to cover their shorts. Once you cover a short it isn’t really a short anymore. The whole point is to speculate.
UncleMeat 6y ago
> When it's time to cover That isn't how shorts work. You pay interest on the loan. It isn't like at day X suddenly you owe the share back or else you go to prison.
- quickthrowman 6y ago
  Credit isn’t limitless.. margin calls do happen
  - UncleMeat 6y ago
    They do, but not in bulk. The idea that suddenly, all at once, the people short GME will instantly need to buy shares to cover their shorts is just not how it works.
    - david927 6y ago
      It's a "gamma short" and it can happen.
- adriancr 6y ago
  shareholders can call back shares at which point shorts have to find other shares or buy at market value. I think we're already seeing shares called back since likely gme wants to do a stock offering on a good valuation. There's also not many shares left to short... so it is going to be interesting.
  - water8 6y ago
    This is nonsensical. Just because the stock is super high doesnt mean anyone is going to actually accept it as collateral for funding. Way to volitile
    - adriancr 6y ago
      Whats nonsensical? I'm a shareholder. I can call back my shares if I want and refuse to lend them. This is what Michael Burry did when he bought a stake. The rest is assumptions. > Just because the stock is super high doesnt mean anyone is going to actually accept it as collateral for funding. if they issue direcly on the market it is going to get bought...
cwhiz 6y ago
Shorts aren’t timed. What could happen is that holders call for shares back. However, that didn’t happen at GME@$500 so I doubt it will happen here.
- Black101 6y ago
  It was at $168 at the close of extended hours... who knows where it'll go tomorrow.
teawrecks 6y ago
The implication being that the handful of parties who hold shorts in GME are "singlehandedly" responsible for propping up the value of the entire stock market? Seems unlikely...
- adriancr 6y ago
  That's a narrative meant to push a bailout of hedgefunds - translated - "they're too big to fail, market will crash"
- david927 6y ago
  A deer jumping in front of your car and totaling it doesn't imply that the deer is keeping the car running. That said, I'm all for what's happening with $GME. They've been cheating the public for years and now the public has turned a cheat (naked shorts) around and is going to get rich off of it. Fair play.