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A comment on Ask HN: How is GME not a pump-and-dump?. Parent comment

Re:Ask HN: How is GME not a pump-and-dump? by nursur2011 on Friday January 29, 2021 @05:09PM (#25963362)
the 6-8 days to cover is based on historical volume is my understanding. If volume spikes 10x in a day they cover much faster. Besides, this assumes 100% covering, why would they do that vs. just incrementally?
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Re:Ask HN: How is GME not a pump-and-dump? by pastrami_panda on Friday January 29, 2021 @08:13PM (#25964983)
This was exactly my thinking, why wouldn't they utilize these days of extreme volume trading to their advantage. It's their bread and butter, no?
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Re:Ask HN: How is GME not a pump-and-dump? by nowherebeen on Saturday January 30, 2021 @02:38AM (#25967119)
Exactly. Hedge funds love volatility. They aren’t mutual funds. Hedge funds typically make the most and lose the most money during these times because they can take any side of the position as they see fit. People that invest in hedge funds know this.
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Re:Ask HN: How is GME not a pump-and-dump? by beagle3 on Saturday January 30, 2021 @04:49AM (#25967740)
They are not magicians. They are on the losing side of what turned out to be a few billions dollar bet (real money. Not notional).

They usually profit from switching side quickly or making informed bets you can’t easily make - like shorting stocks.

Except, they dug too deep this time. We’re seeing another LTCM meltdown in process, albeit smaller and so far more contained.

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Re:Ask HN: How is GME not a pump-and-dump? by TuringNYC on Saturday January 30, 2021 @10:14AM (#25969692)
Because while volume went up the price did also, so it’s costing them 10x to 20x to cover.
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