Quote:
Originally Posted by Leondros
I don't see the exposure being that pervasive (ie. not every hedge fund was shorting GameStop). Worse case scenario the hedge funds that do have to cover their positions become insolvent and the fund collapses resulting in the fund liquidating all of their holdings - I believe Melvin was at $12B so thats $12B erased out of a $50 trillion dollar US stock market which isn't even a blip really.
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We'll see. Wallstreet has shown us a calm demeanor downplay of worry and losses while s#####g their pants simultaneously many times before. This could be way worse. There could be more hedge funds heavily exposed (140% short @$20 for big dollars). I believe hedge funds don't necessarily have to disclose positions on the spot, they can wait up to a full yearly quarter if I'm not mistaken.
Has there ever been a short squeeze before where they shut off buying only? (Serious question, I have no idea how common this type of action is taken, but just seems without precidence)
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