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A comment on How r/WallStreetBets gamed the stock of GameStop. Parent comment

Re:How r/WallStreetBets gamed the stock of GameStop by jdjfktkrnj on Wednesday January 27, 2021 @02:18PM (#25932561)
> Still don’t get how this mess is going to get cleaned up since it’s impossible for the shorts to cover.

A deep pocketed long term large fund can buy the short position at a discount, a bit like distressed debt, and then just wait it out. It's a guaranteed win if you have deep pockets.

Note that when they buy the position, they don't also inherit the current mark to market loss, only a part of it (the price they pay).

What is a fair price for this position? I would love to know if someone has any insight on this.

[ Parent | on HN ]
Re:How r/WallStreetBets gamed the stock of GameStop by notyourday on Wednesday January 27, 2021 @02:52PM (#25933038)
> A deep pocketed long term large fund can buy the short position at a discount, a bit like distressed debt, and then just wait it out.

They can't. Contrary to the memes peddled on reddit Illuminati aren't running the world.

[ Parent | on HN ]