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If they think that retail buyers are close to being maxed out and are just holding (reasonable assumption), they can be relatively sure that there will be no an
by nabla9 5y ago
If they think that retail buyers are close to being maxed out and are just holding (reasonable assumption), they can be relatively sure that there will be no another short squeeze.
Price can go up somewhat, and if it keeps up, they lose some amount of money eventually, but nothing catastrophic. It's more likely that the price goes eventually down and generates good profits. If GameStop goes trough $1 billion stock sale the price will almost certainly tank.
- biofox 5y agoI haven't been following too closely, but my understanding is that if some of the parties who are short GameStop/AMC have been naked shorting, then as this drags out it becomes more likely that the failures to deliver will eventually catch up with them, forcing a squeeze. And with the volume of shares that have been traded, I doubt it's just Redditor's making this play.