I'll double down for you and it will really melt you brain- they paid Ars in this article to say they have covered their shorts.
To think hedge funds wouldnt do such a thing when so much is riding on this, is extremely naive.
To think hedge funds wouldnt do such a thing when so much is riding on this, is extremely naive.
You agree they're motivated by money, right? They would have lost literally all their money, even with the additional investment, if they were still in when GME soared to $400. They would also be aware of that fact.
Though they might have seen what was happening and exited at 50 to reenter at 300. That would be incredible foresight.
It seems entirely unsurprising to me that a brick and mortar retailer selling digital goods in the middle of a pandemic would be a hot short target for many different funds, thereby organically pushing short interest over 100%.
edit: originially I said they could carry 200% short, but that is not true. The biggest funds I can find could alone have shorted 30% of a GME at $3 and be okay at $300, but going much above that price or percentage of GME shorted would be a problem.
Because they haven't closed their positions, and that information would tip shareholders into thinking they might release some profit before the price levels out.
>They would have lost literally all their money, even with the additional investment, if they were still in when GME soared to $400
No. Not if their positions haven't closed.
If you really think this through, why would they actually announce they have covered the shorts instead of simply reclaiming a short position?
This is paper thin logic. If they hadn’t said anything publicly, you and others would be commenting, “See! Melvin Capital hasn’t said anything, so they’re still shorting GME.” It is incredibly common for investors involved in public battles over a stock to announce they’ve closed a position, see Bill Ackman and Herbalife (https://www.investopedia.com/news/billionaire-bill-ackman-du...)