/biz/ - Business & Finance

Okay check it out. So hedgie borrows a share and sells it into the market as short. If there were 100 shares, they are now 1% short.

Hedgie’s like “bro we can make much chedda up in heeeee!” So they borrow all 100 and sell them short into the market. Now they are 100% short.

But they all like “Bruhv we can make so much mo.” Hedgie “reasonably locates” more shares to short from their broker bros. They find a whole 100 more! Fuck yeah bruhv let’s go! Do a little market making magic and boom there are 100 synthetic shares sold short into the market that were purchased by apes.

Now… in order for hedgies to close all of those short positions they must dip their little pedicured toes into the market and buy back a share for every short they created.

Then a pack of rabid retards comes along and starts DRSing like their lives depend on if. Every time they DRS a share, their broker must go into the market and purchase a legitimate share to deliver to the transfer agent for the DRS. But you know who didn’t purchase that share? The hedgie bros.

But the hedgie bros are all like “Nah mane no effin way these tard nuggets can DRS all that shit. WE AIN’T CLOSING!”

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