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Wasn’t that the problem with GameStop, the short sells had shorted more stocks than was actually in circulation?
by mrweasel 5y ago
Wasn’t that the problem with GameStop, the short sells had shorted more stocks than was actually in circulation?
- vdjao 5y agoIdentity A borrows a share from B. A sells the share to C in hopes of buying it back later at a lower price. C decides to loan their share to D. A: has one share loaned out B: owes A one share C: has one share loaned out D: owes C one share. Two shorted shares from one share
- mason55 5y agoThat did happen but the latest SEC report showed that it didn’t really have much impact on the price
- seoaeu 5y agoThe problem with GameStop was that many redditors thought there was more shorts than total stock available and that this would make it impossible for all of the short sellers to cover their position. In reality, a single unit of stock can be borrowed and sold short multiple times without really causing any problems