I have very little Wall Street knowledge and I haven't seen an article explaining the whole GameStop issue in plain language. Can anyone break it down for the stock market illiterate? Or share a good link? My main question is...can this hedge fund bitch slapping be duplicated over and over again?
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Hedge funds borrowed and sold 140% of GameStop stock and are under contract to buy it back. They were betting that their institutional power could keep driving the price down and they could sell it back for less than they borrowed it for. WallStreetBets caught them with their dick in the cookie jar.
Hedge funds thought they would be able to buy back share at ~$3/share. WSB and the internet at large has driven the price over $300/share.
Hedge funds that shorted are bleeding billions of dollars. They HAVE to buy back the stock they borrowed at whatever the market price is.
This is a once in a lifetime opportunity to do to Wall St. what they did to us in '08.
I'm buying GME and I don't plan on selling until either GameStop goes bankrupt or Wall Street has collapsed.
The value of the stock is no longer tied to GameStop, it's the fact that the hedge funds HAVE to buy it back, can't NOT buy it back, are FORCED to buy it back at whatever the market price is when their short calls are due.