LogFAQs > #950147672

StartTheMachine posted...

Honestly hedge funds are probably mostly driving both stocks at this point, but I especially am counting on them for pumping the fuck out of AMC.

I hate it to break it to you but that's the reality. It's literally in the title of what they do - hedge funds. These guys can be losing a huge short position but hedging with long positions and as long as they have the funds to pay margin interest rates, they can probably hold off on closing their short position for long enough, since their long position is making money back.

Now that I know how short squeezes actually work, that's my personal theory on why all the blue chip stocks are down - not to pay margin interest, but to buy more GME and AMC because their long position was down.

I could be completely wrong. But if I'm not, just don't let the secret get out and we'll all get rich anyway. Melvin certainly got fucked from billions, I just don't think it's going to be as sweet as sending them to bankruptcy.

It's different funds that would be on the long side. A single fund wouldn't have both long stock and be short. The positions would immediately offset. And even if that kind of position were allowed, it would be dumb, like playing baccarat by putting the same amount of money on both player and banker. Yeah, you won't lose more than 5% of one bet per hand, but you can literally never win no matter what happens. That's a dumb position.

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September 1, 2003; November 4, 2007; September 2, 2013
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