The short squeeze has not even happened yet. The hedgefunds HAVE to purchase at whatever price it currently is and they fucked themselves by shorting more than 100% of the stock. So they literally have to buy everyone's stock and then some more
They only need to cover if their prime broker (ie securities lending counterparty) requires them to lodge additional collateral. Why would they, they know that GME is effectively worthless. They will let the funds ride it out.
Options are all delta hedged - there will be a (big) seller come to the table at option expiry, which will largely match the exercises.
This is not going to end the way people think.....
The short squeeze has not even happened yet. The hedgefunds HAVE to purchase at whatever price it currently is and they fucked themselves by shorting more than 100% of the stock. So they literally have to buy everyone's stock and then some more
They only need to cover if their prime broker (ie securities lending counterparty) requires them to lodge additional collateral. Why would they, they know that GME is effectively worthless. They will let the funds ride it out.
Options are all delta hedged - there will be a (big) seller come to the table at option expiry, which will largely match the exercises.
This is not going to end the way people think.....