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edmund_the_destroyer wrote

Reply to comment by rot in by !deleted28887

I saw an explanation for the 140% shorting. The idea is that you sell shares, buy them back, and sell them again. If the stock price is racing downwards, it works fine.

But GameStop stock is now trading at 10x+ higher than it was when these big firms set up their short sales, and trying to buy enough shares to sell twice is costing billions.

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rot wrote

shorting is selling bets on a team you predict to lose so you can make profit basically (bad analogy but bear with me)

over 100% means they sold a short stock, bought it back then resold it, sorting the buyer again

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