LogFAQs > #950023662

from what i understand

the practice of short selling stocks means that you borrow a bunch of stocks, sell it, hope it goes down, buy back the stock at a lower price, and then return the stocks you borrowed and keep the extra you made when you sold it

ie

say a $GFAQS is 10 bucks a share
i borrow a share from a lender. i sell it for 10 bucks. the price tanks to 5 bucks. i buy it back for 5 bucks and i give back that share to the lender. i know have 5 extra dollars.

now expand that out to the millions, billions of dollars.

Reddit saw a company doing this with GameStop and said "HELL TO THE NAW, TO THE NAH NAH NAH!" and bought options in gamestop, causing the stock to S K Y R O C K E T.

back to our example.
i borrow a stock. i sell it for 10 bucks. but now its worth 1000 dollars. im fucked. the lender wants his stock back, so i have to buy it at 1000 dollars. so i do, and now im out 990 dollars.

NOW EXPAND THAT TO THE BILLIONS OF DOLLARS.

reddit was doing this trololololling at all these corporate fat cats who thought they could short sell and make millions, but now they're going to LOSE millions because of them.

that when robinhood got a phone call from the fat cats: "THE FUCK IS GOING ON? WHY ARE THESE POURS FUCKING UP OUR BUSINESS!"

so robin hood, who pretended to be the broker for the common man, said NOPE NO MORE TRADING GAMESTOP and stopped them, causing the stock to TANK.

now reddit wants to sue them because robinhood shouldn't have intervened and its causing people who bought gamestop to lose money.

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