The thing is, once you build a few billion dollar position, you can’t unload it quickly and profitably when you know you’ve been spotted. Indeed, shorting AMC

The thing is, once you build a few billion dollar position, you can’t unload it quickly and profitably when you know you’ve been spotted. Indeed, shorting AMC and GameStop was very rational by any single actor - the problems were that too many hedge funds were doing it at the same time, and that WSB noticed , turning the “market can stay irrational longer than you can stay solvent” on against the hedge funds at full throttle.