Re:u/DeepFuckingValue and the GameStop Reddit mania
by 015a on Friday January 29, 2021 @07:55PM
(#25964862)
The funds. There's an ocean of difference between "we finished the year down 98% but we met all of our obligations" and "we finished the year down 100%, and we also failed to meet our obligations". Those obligations include the repurchase and repayment of short-sold stocks sold by the brokerage.
WSB wants a short squeeze. They got that. But, their theory is that it isn't over, and if they get the 10x+ returns in the coming weeks (I don't think they will, but lets say they do), then these funds are potentially looking at commitments that approach their AUM, and a nasty margin call. That's a real recipe for shutting down, and if that happens, there is no more short to squeeze. Everyone loses.
Re:u/DeepFuckingValue and the GameStop Reddit mania
by rualca on Friday January 29, 2021 @08:41PM
(#25965164)
> That's a real recipe for shutting down, and if that happens, there is no more short to squeeze. Everyone loses.
It seems you didn't understood that for the WSB crowd the definition of winning is getting these funds to shut down, regardless of their personal losses.
This is no longer about money. This is a protest against a rigged system.
Whose bankruptcy? The WSB crowd are very vocal in their goals of bankrupting hedge funds who have a lot riding on forcing gamespot's stock price to plummet.