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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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26624162 No.26624162 [Reply] [Original]

If these hedgefund retards sold more then 100% of stock, and they HAVE to buy it back, what is stopping retards from refusing to selling their stock for anything less then 1 trillion dollars? What happens?

>> No.26624281

>>26624162
They buy from the people who lent on the short, not the current holders.

>> No.26624286

>>26624162
They will be forced to cover. When forced to cover the MM buys back at whatever the current market price is to cover the contract

>> No.26624337
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26624337

I've found a new defi Baex(#baex), does anyone know about it? That's a binary project with USD/YEN, crypto and many other stock indices. Seems legit and reliable with Yahoo quotes source and algorithmic profitability

>> No.26624416

>>26624337
Pajeet bot

>> No.26624432

>>26624281
you don't have a clue
they have to buy shares to give to the original lenders.

>> No.26624537

>>26624286
>They will be forced to cover.
how the fuck can they be forced to cover 130% of the total shares when maybe 50% at MOST is on the market

>> No.26624560

>>26624432
They have to give the lenders funds equal to the value of the shares

>> No.26625223

>>26624162
Assuming all shares are in open sell orders, they have to match buyers with sellers. They only need to buy a limited number of shares to cover though. Not every shareholder will profit off this.

>> No.26625494

>>26624432
>>26624560
In other words they shorted for example 40$m share that at short time was 100$ per share so they shorted 4000000 shares and right now when for example share will pump to 10000$ then they can buyback only 4000?

>> No.26625540

oy vey! its anuddah shoah!

>> No.26625685

>>26625223
>They only need to buy a limited number of shares to cover though
do we know how much?

>> No.26625999

This seems impossible but I bought calls anyways cause fuck it.

>> No.26626240

>>26624162
like if the hedgfund goes under, and doesnt buy anything cause they're gone now...who's getting paid? Some of these retards on reddit legit think they're rich now. All I'm seeing is a hedgefund being destroyed. Either is fine though

>> No.26626353
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26626353

>buy $1M worth of GME
>limit order to sell each share for $100k
OY VEY

>> No.26626639

>>26626240
Marvin probably has 10b in total assets they can liquidate. It's not Reddit they have to pay back, it's the initial lender who provided the equity for the short. Reddit is just the middle man getting paid.

>> No.26627376

>>26624162
game theory m8. Everyone who's going long would have to coordinate on that also there would be too much of an incentive for someone to sell earlier than everyone else.

>> No.26627531
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26627531

>>26624162
They will just file for bankruptcy and take down all the banks and insurers associated with them

>> No.26627714

i have 5 shares
im doing one at 998
one at 1337
one at 3000
one at 10,000
and one at 20,000

I don't give a fuck about the money I just want to see what happens in this experiment

>> No.26628439

>>26624162
>HAVE to buy back
They don’t. They just wait. There is ALWAYS a limit to how high it can go. But it can always go to $0. It’ll hit a ceiling then everyone will realize it’s ogre and sell. The stock will tank and then the shorters finally sell.