/biz/ - Business & Finance

>>50120809
>>50120941
>>50121113
>>50121192
>>50121198

I just want to quickly clarify for those who don't get why BBBY will affect GME's price:

Imagine you have a swap of different retail companies. This is called a "retail swap," and is exposed to certain companies within retail. Just for example, let's pretend that it has 3 stocks in it: AMC, GME, and BBBY.

Now let's pretend the percentage of the stocks within this swap was as follows:
>GME: 40%
>AMC: 40%
>BBBY: 20%


Ok great, so I'm an ass-licking hedgefund who wants to short all these companies. I take out a massive short position of this swap in order to get massive leverage over the companies I want to short. However, I also want a hedge, so I get long on one of the stocks (AMC) in order to not lose everything in case this goes tits up.

>January 2021 happens
Suddenly all the stocks within the swap squeeze together (check the charts, it happened for all 3 stocks above and other retail companies in the actual swap). They all jump in value as the shitstains on Wall Street are forced to cover.

>2 years later
Okay, so just because they fucked up with GME doesn't mean that they can roll over. They want to continue their campaign against this retail swap. So, they start aggressively shorting one of the companies within the swap (in this case, BBBY, which is currently at an all-time low in marketcap). So they short it and will continue to short it, hopefully (for them) to bankruptcy.

But, Ryan Cohen and retail start to realize their gameplan. So they buy and hold BBBY en-masse, get control of the float, and hold. As shorts lose the ability to manipulate the price due to vanishing share availability from GME, BBBY can effectively be a knife in the jugular to kill these assholes once and for all. If retail buys up BBBY the same way they did GME, then shorts are forced to close their SWAP POSITION (which also includes GME) and will kickstart the MOASS.