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amoitnga | 5 years ago

> But they're out now and the story is over

some say they are, some say they aren't. Is this in fact true?

> WSB doesn't hold the full capitalization of GME

does anybody know how much does wsb hold approximately? very rough number would still be interesting to know.

discuss

order

fractionalhare|5 years ago

> some say they are, some say they aren't. Is this in fact true?

The ones which said they are out are out. There isn't actually any evidence that they stayed in. There is a lot of frenetic speculation on reddit that they're still in, which is mostly the result of redditors cargo culting bad "game theory" to support their own priors that hedge funds will always lie no matter what. I have written many comments about this in the past couple of days; suffice it to say that these conspiracy theories are based in basic trading illiteracy and misunderstood jargon, mixed with a heavy dose of emotional investment.

On the other hand, there is good evidence they actually closed out when they said they did: the hedge funds getting burned when GME was at $50 and $100 simply wouldn't exist anymore when GME hit $300, $400 or $500. They would have been margin called and it would have been game over.

And finally - yes, some funds are short GME right now. But that's not because they were short at $4.5, it's because the current price is dissociated from reality and all the smart money wants to short the peak.

blackearl|5 years ago

It's hard to say because every source I can find shows institutional ownership is 120-160% and I don't know how it's possible to own more than 100% of a thing. I suppose that could all be the short positions leading up to the recent drama.

brandmeyer|5 years ago

Stock creation of this form is not entirely unlike the money creation that happens with fractional reserve banking. A short squeeze is crudely analogous to a bank run with that mental model.

(I have no market position on any individual stocks... because I don't consider myself sufficiently well-educated to do it. So take that grain of salt as you see fit).

vkou|5 years ago

Every short share creates a long share.

If a stock is 30% shorted, that means there are 130% of shares in circulation. (And 30% negative shares.)

If a stock is 130% shorted, that means there are 230% of shares in circulation. (And 130% negative shares.)

If your numbers are correct, then institutional investors would own just a bit over half of GME.