[Justa]

Karl, there was naked short selling (120%) previously in GME. That will make the main street buyers whole because +20% stock must be bought back to cover the WSB’s short positions.

There’s more than enough ‘Must Buy Back’ positions to cover Main street investors purchases.

[KarlInOhio]

But will the rules be changed so that being $500 underwater will not be called? Will the other hedge funds see this as a chance to pick off a competitor or a time to unify behind a brother being attacked by the sheep? Will the end of "Trading Places" be edited so the head of the trading floor says to the Duke brothers "don't worry about it, I'm sure it will get straightened out over the next week and then you can settle up"?

I'm cynical enough to believe that the Reddit bettors will be the ones hung out to dry while the hedge funds may get a billion dollar spanking just to teach them a lesson to not let others break the big game.

[PapaBear3625]

The Hedge Funds are in trouble. Not just a little financial trouble, but a lot of legal trouble.

What triggered the buying of Gamestop was people on Reddit noticing that short sellers had sold 140% of the actual amount of Gamestop stock. The hedge funds not only sold stock they didn't have (Naked Short Selling, which is illegal, at least when mere mortals do it), but 40% more than exists.

This is why many brokerage houses have halted retail investers ability to buy Gamestop

Much of the volume of Gamestop trading involves stocks which do not actually exist. The trades cannot be cleared. The trades cannot be settled by the clearing firms..

And once this becomes painfully obvious to the general public, too many uncomfortable questions are going to be asked.