So essentially, a whole bunch of big hedge fund companies bet on GME to fail. They did what's called a short. What this essentially is, is I'm going to borrow your share and sell it at the current price, and I guarantee to return it to you by date X. If the price goes down, I make the difference between the sell price and the price I have to buy it to give it back to you. However, if the price goes up, I eat the loss.
Well, there were a whole lot of short sell orders out for GME that were about to come due. A WHOLE lot. Like nearly or possible more shorts than stocks that existed lots. And some people noticed it. And since the companies have to buy back the stock to give it back to the people who they borrowed from, if they can drive up the price by buying it all up and demanding a higher price to sell it back, well, they make the money and the hedge funds have to bite the bullet.
The bigger ones will lose a shitload of money. The smaller ones may bankrupt and have to close.
Big Hedge funds shorted Gamestop’s (GME) stock. That means they sold stocks before they had them, assuming the price they will buy them at would be lower than what they sold them for. People on reddit found out, started a mini-movement to buy GME stocks to jack price up. Big hedge funds are going to lose loads of money by Friday, especially since they sold more shorts than are available stocks to buy. They have to pay interest on shares they didn’t deliver.
Can someone explain for a dum-dum what's going on and why?
So essentially, a whole bunch of big hedge fund companies bet on GME to fail. They did what's called a short. What this essentially is, is I'm going to borrow your share and sell it at the current price, and I guarantee to return it to you by date X. If the price goes down, I make the difference between the sell price and the price I have to buy it to give it back to you. However, if the price goes up, I eat the loss. Well, there were a whole lot of short sell orders out for GME that were about to come due. A WHOLE lot. Like nearly or possible more shorts than stocks that existed lots. And some people noticed it. And since the companies have to buy back the stock to give it back to the people who they borrowed from, if they can drive up the price by buying it all up and demanding a higher price to sell it back, well, they make the money and the hedge funds have to bite the bullet. The bigger ones will lose a shitload of money. The smaller ones may bankrupt and have to close.
so the little guy find a way to fuck over the elites and big daddy government said we can't have that.
https://patriots.win/p/11SK7H5UNW/x/c/4DvnLwPCxZT
Big Hedge funds shorted Gamestop’s (GME) stock. That means they sold stocks before they had them, assuming the price they will buy them at would be lower than what they sold them for. People on reddit found out, started a mini-movement to buy GME stocks to jack price up. Big hedge funds are going to lose loads of money by Friday, especially since they sold more shorts than are available stocks to buy. They have to pay interest on shares they didn’t deliver.