/biz/ - Business & Finance

>>53148397

>>52494486
>The whole thing is predicated on the idea that there exist giant, hidden short positions in the stock.

>Why that would be the case
Shorts got greedy cellarboxing GME to $0 into bankruptcy and delisting for a tax bonus
>how that is possible
You can short one share multiple times, 100x the float if you would wish to do so. You can make synthetic short positions using derivatives and (OTC) swaps
>why wouldn't the people responsible just close them
They don't have the liquidity and capital to do so, as the covering causes a short squeeze rally, additionally the stock is loved by "Buy and HOLD" retail investors. Covering is a negative spiral for short positions.
>You cannot just keep adding infinite amounts of risk to your positions
With unregulated margin, getting ever closer to infinite risk is very possible for a simple retail investor (see crypto), let alone unregulated hedgefund firms and market makers which indulge in trading.
>Sooner or later your counter parties will stop trusting you
If those counter parties only realise once the hol you've dug is too big, a parasitic relationship causes counter parties to be in the line of fire.
>you would have to bribe hundreds or maybe thousands of people to implement it
With a need to know basis and the world of finance that is deliberately made as hard to navigate as possible, information spillage is already very limited.
>would be easier to just take the loss and get out before it explodes
See point above, negative spiral. This is also why the big players are bailing out smaller funds.
>second cheapest option would be to just buy out the entire company and be done with it
More shares are sold short then the number of outstanding shares, this is impossible without covering. With 29% of the company shares evidently in the hands of retail HOLDers, negotiation is impossible. See also infographic.
>Biden is just going to tell you to fuck off
Profiting of socks is the basis on which American corporatism is build on.

>>50877158
GME