Re:Robinhood is said to draw on bank credit lines amid tumult
by dalbasal on Thursday January 28, 2021 @09:18PM
(#25952813)
Following paragraph, same article:
Melvin is that it was also shorting GameStop, meaning it was borrowing shares of GameStop, selling them on the market and using those proceeds to make other investments. Problem is, Melvin eventually has to return those GameStop shares. So now Melvin has to buy GameStop at their new, inflated price, only to give those shares back to the original owner
Melvin is that it was also shorting GameStop, meaning it was borrowing shares of GameStop, selling them on the market and using those proceeds to make other investments. Problem is, Melvin eventually has to return those GameStop shares. So now Melvin has to buy GameStop at their new, inflated price, only to give those shares back to the original owner
https://www.esquire.com/news-politics/a35339535/game-stop-st...
TLDR is getting onerous