A few lucky Redditors will get out with profits. Most of the late entries are going to take steep losses. Those losing Redditors will be paying the winning Redditors.
The narrative that this is hedge funds losing to Redditors isn’t fully accurate.
https://www.reuters.com/article/us-retail-trading-shortbets-...
The hedge funds aren't structurally important. Brokerages start to be. Retail banks definitely are.
There are a lot of people under the age of forty who don’t feel like they are benefiting from our current system. When the Boomers hit age 35, they owned approx. 21 percent of the nation’s wealth. Gen X plummeted down to 9 percent. Millennials are on track to own about 3-4 percent. This is according to the Fed.
They make less, own less, don’t see themselves or their interests represented at the highest levels of our government, and are fed up.
So, yes, the young would suffer more than the wealthy, the elderly, and the connected in an economic collapse, but they don’t seem to care.
Both are right to a large extent, and both are slandered as evil/racist/etc. by the other side.
> Ortex said the figures are based on the change in trading prices between the start of January to Wednesday’s close, and the number of short positions.
The shorts might be down 70 billions, but won't most hedge funds hedge their position with something more complex than just a short?
That's a lot of assumptions, though.
Some hedge funds are going to make bank on this.
I bet there are some much more experienced reditors behind this and a lot of the useful idiots will lose $$