It’s not a loss until they are forced to close out the position due to a margin call.
Many of the short sellers are still hoping the people keeping the price up will eventually fold.
What they’re missing is twofold: 1) These aren’t speculators looking to pump and dump. They’re not in it for the profit, they’re in it to destroy the hedge fund titans, no matter the cost. 2) They don’t yet realize how this attack on them is spreading internationally. Now, like-minded individuals around the world are jumping in to keep the stock propped up.
I think the populist army wins this, big time. All they have to do is sit on their positions, while the shorts have to keep coming up with cash to meet margin calls (or surrender their positions and take a nuclear hit). If the Reddit populists didn’t crack and start selling when the stock hit almost $500, they’re not going to do it now. It’s a really impressive and inspiring display of solidarity and sticking to principles.
"Margin call, gentlemen."
'Why you can't expect...'
" You know the rules. All accounts to be settled at the end of the day's trading, without exception."
'You know perfectly well, we don't have $394 million in cash.'
"I'm sorry, boys. Put the Duke brothers'seats on the exchange up for sale at once. Seize all assets of Duke & Duke Commodity Brokers, as well as all personal holdings of Randolph and Mortimer Duke."