Hedge funds short 130% of GameStop stock (yes, that is indeed a strange number) for $10 each promising to buy all shares at the end of the month for what it assumed would be $5
WSB buys much of the shares that hedge fund does not have, and prices go up to hundreds of dollars
Meaning the ~$5 Million in profit they were expecting has now become a $12 BILLION loss!
Hedge fund throws big whiny piss baby fit to regulators and broker to make it so they don’t lose any more money
Hedge funds short 130% of GameStop stock (yes, that is indeed a strange number) for $10 each promising to buy all shares at the end of the month for what it assumed would be $5
WSB buys much of the shares that hedge fund does not have, and prices go up to hundreds of dollars
Meaning the ~$5 Million in profit they were expecting has now become a $12 BILLION loss!
Hedge fund throws big whiny piss baby fit to regulators and broker to make it so they don’t lose any more money