[BenLurkin]

Easier to curb the use of naked shorts. Something that may have needed to be donw long ago.

[Yo-Yo]

Easier to curb the use of naked shorts. Something that may have needed to be donw long ago.

Naked shorting has been illegal since 2008. Maybe the SEC needs to concentrate their efforts on investigating the hedge funds' practices of naked shorting illegally than focusing on the subReddit.

[P-Marlowe]

Apparently these “Hedge Funds” forgot to hedge their bets.

[dayglored]

> ...curb the use of naked shorts...

"Ooooo, kinky!"

[Repeat Offender]

They weren't naked shorts, those hedge funds intended to buy all 136% of the outstanding shares they shorted. /s

[Riflema]

Naked shorts are illegal already. But somehow, they keep on happening. Patrick Byrne (yes, him) has written and campaigned extensively on this issue as his company was a victim some years back.

The naked shorts are scumbags and fully deserve this if they don't escape.

[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.