This was the entire basis of the GameStop stock price jump.
A bunch of gamers decided to buy stock up to nail the short traders costing some of them billions at one point. So you had a bunch of people saying “This isn’t right.” and buying a couple of thousand dollars of stock to cost institutional investors a few hundred million.
Naked short selling is about the dumbest thing you can do because there is no limit to how much money you can lose. If you short a stock at $20, current market price is $50 if the stock goes to $200 you’re out $180 a share. This can’t go on indefinitely because of margin calls. Sometime in the not too distance future someone is going to come looking for you to cover your shorts.
If this became political all it would take is 5,000,000 retail investors to hurt these 4 institutional investors harder than any regulator ever good.
The guy had the intent of shorting the stock to bankrupt the automaker and enriching himself in the process. The automaker in the prior years had been buying up it’s own stock, limiting the available stocks in private hands.
The guy did his naked short sell and the automaker bought up the stocks he did not own.
Automaker’s stock value increased and there were no more stocks for the scammer to try to buy back to limit his loses, causing him to own $millions.
The Feel Good ending to the thread was the guy stepping out in front of a moving train.
Look like word’s gotten out on this. Stock’s gone from 23 on Tues to 35 today.
It’s going to accelerate as its squeezed. Wouldn’t be surprised at $500 by the end of the month. Lol. Man, they F-d up big time!!!
Volume will be double today. Know if WSB is on it yet?