| EnricoPallazzo said: Its been a hell of a ride, this is occupy wall street done right. 140% of shares shorted, its unbelievable. Im more interested in the aftermath which will probably generate some censorship as usual. Their discord channel has been already taken down. |
Yes - 140% of shares shorted. That's a bet Wallstreet is making against people buying the shares. The more Redditors buy, the more Wallstreet will short against those purchases.
There is a misunderstanding that shorters need to deliver shares on a particular expiry and that's the end of the story. They can also roll the short to a later expiry date if they think that the long term prospect is unchanged. It just means the time period of the investment is longer (and hence costs a bit more money)
If you can't see that 140% is more shares than really exist, then you should avoid getting into this. The more people buy at ridiculous prices, the more those purchasers will be paired with the short sellers - hence my description of "buying imaginary shares".
The moment the share price goes back to the long term "target level" is when you need to look at who has made or lost money. All that is currently happening is that short sellers are delaying their exit plans (although that in itself wastes a bit of their money). They will likely stick with their long term valuation and just ride this out.
So basically, I think the shorter are going to win this one. (although that is not financial advice obvs)
