So what is happening with Gamestop now ?

[AkimboCurly]

OneTime said:

rapsuperstar31 said:

Some of the kids are going to be worth 6 or 7 figures if they pull this off right. Some of their parents invested in some of these hedge funds that had been short betting Gamestop are going from millionaires to bankrupt. Those on wallstreetbets that trust everyone on reddit for too long are going to watch their new fortunes wiped away pretty quickly if they don't act at the right time. Crazy times going on these days in the market.

Don't forget, while banks are quite happy to sell you imaginary shares, they are under no obligation to help you sell your imaginary shares.  Your ability to sell a $300 share (real or imaginary) is predicated on someone wanting to buy it for $300.  If there isn't someone currently willing to pay real cash for your imaginary share, then I have bad news about the value your investment...

Actually the short positions opened by various investment actors including Marvin investments (I read somewhere up to 140% shorted) means that actually 140% of the current face value of the company will have to be stumped up by the short sellers. They're contractually obliged to purchase the share when either the term expires or they exit the position. But the trouble is that once these contracts are paid out, what remains is a massive bubble. That 140% is dropping every single day. As soon at it hits 99% shorted, the stock is worth $4 again. 

So the endgame is either that the redditors lose their nerve, the stock falls and the short positions are exited... or the price holds, the funds' terms expire, and they are forced to buy the shares at $400 a share. In reality, of course, there are thousands of different actors with short positions, and they're taking different routes, some exiting early, some holding their positions. Meanwhile there are many redditors who are selling their stocks now. The market is clearing - its not clear which side to bet on.