Re:GameStop Is Rage Against the Financial Machine
by didibus on Wednesday January 27, 2021 @10:23PM
(#25937759)
There's two way this can play out in the end from my understanding.
1. The Hedge funds loses their bets, and some retail investors make ton of money of it. This will happen if when the retail investors "cash out", all the money is coming from the shorters being forced to buy it back at the inflated prices.
2. The shorters will be done liquidating their loss, and now more "little guys" will buy the now inflated stock from the earlier retail investors at an inflated price wanting to "get in" on the action. This will result is something more akin to a pyramid scheme and get rich quick scheme.
Edit: Well there's a 3rd way, though seems less likely to me, which is that the new surge in stock price allows GameStop leverage to somehow become a massively profitable company that actually meets and surpassed the now "apparently" inflated stock price. In which case, all of the "little guys" will win and only the shorters will lose. I guess this is the best case scenario.
1. The Hedge funds loses their bets, and some retail investors make ton of money of it. This will happen if when the retail investors "cash out", all the money is coming from the shorters being forced to buy it back at the inflated prices.
2. The shorters will be done liquidating their loss, and now more "little guys" will buy the now inflated stock from the earlier retail investors at an inflated price wanting to "get in" on the action. This will result is something more akin to a pyramid scheme and get rich quick scheme.
Edit: Well there's a 3rd way, though seems less likely to me, which is that the new surge in stock price allows GameStop leverage to somehow become a massively profitable company that actually meets and surpassed the now "apparently" inflated stock price. In which case, all of the "little guys" will win and only the shorters will lose. I guess this is the best case scenario.