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.