Posted on 02/26/2021 6:47:22 AM PST by eyeamok
Investors selling GameStop short - betting the stock price would decline - posted $664 million in mark-to-market losses as shares of the gaming retailer rocketed 104% into the close, according to financial analytics firm S3 Partners. The stock's 84% intraday gain fueled another $1.19 billion in losses, bringing the two-day total to more than $1.85 billion.
(Excerpt) Read more at markets.businessinsider.com ...
Reddit v hedge funds?
Not sure I believe this. Losses in a short position are only posted when you buy to cover.
I think this number is the potential loss at this time, if every short covered. That isn’t going to happen this soon.
paper losses, like paper gains. We’ll see quickly enough.
I read an article the other day that the SEC instituted a rule requiring Short Sellers to Cover all Shorts at the end if trading, specifically for GME because of the Volatility and danger of Bankrupting some of the Ruling Class. not sure if it is really being enforced yet though. It might be in Play!!!
>>Losses in a short position are only posted when you buy to cover.
These are “mark-to-market” losses.
Color me impressed that someone remembers what that is! :-)
I am right there with you. I find it amusing too. The big investors that continually screw over the common people just got stung. I hope they lose more and more until they start playing fair.
I don’t see the issue. If you are short selling, you have to have a margin account. The ratio of equity to debt in that account is checked daily by your broker. It isn’t an explicit mark to market, but it serves the same function.
This is total garbage.
How much did the short sellers make riding it down from $500 to $100?
Hedge fund traders are some of the best in the business. They employ sophisticated strategies to hedge positions. Sophisticated software calculating real-time Black-Scholes, automated trading platforms, very fluid, very dynamic to adjust their positions. It’s not like Joe Retail where they buy some simple positions and then go mow their lawns, do their day jobs, and then check 8 hours later see what happened.
These clowns would have no idea how to truly discern what the hedge funds positions were/are or calculate their net-net P/L.
"You know the rules of the exchange, Mr. Duke. All accounts to be settled at the end of the day's trading - without exception."
https://www.youtube.com/watch?v=j4SRsGn14PI&ab_channel=okidokivideos
#14, D’oh!
My take on hedge funds losing money by betting on and taking advantage of companies going under.
Shadenfreude
Warren Buffett is deeply saddened.
S3 has access to short position entry price and sellers. So they know who lost what.
Bear traps are great fun for the whole community! Easier now thnn during the dotcom bubble.
They’re basically a sting operation run by an internet message board(s). Pick your marks and move in concert.
Short squeezes have been around since the 17th century.
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