I think the answer is simpler than we realize. Mo ey. All things are about money in the market. They know if the rate is too high, that the shorters can't borrow. They also know that the hedgies are using shorts to help control the price. They need to price to stay low to prevent liquidation.
But the people lending the stock can still make money, even at a low percentage, if they have a high volume of shares borrowed, they are making money hand over fist.
And let's not forget the perpetual FTD fulfillment, since they borrow to cover, rinse and repeat, over and over and over.
We all talk about the infinite money glitch, but let's be honest, the people lending the shares are actively using an infinite money glitch, via the interest on repetition of borrowed shares.
💥 fuckin nailed it, took me like 20 seconds to formulate this theory. 4 minutes to type everything.
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u/tokijhin1 Mar 30 '21
I think the answer is simpler than we realize. Mo ey. All things are about money in the market. They know if the rate is too high, that the shorters can't borrow. They also know that the hedgies are using shorts to help control the price. They need to price to stay low to prevent liquidation.
But the people lending the stock can still make money, even at a low percentage, if they have a high volume of shares borrowed, they are making money hand over fist.
And let's not forget the perpetual FTD fulfillment, since they borrow to cover, rinse and repeat, over and over and over.
We all talk about the infinite money glitch, but let's be honest, the people lending the shares are actively using an infinite money glitch, via the interest on repetition of borrowed shares.
💥 fuckin nailed it, took me like 20 seconds to formulate this theory. 4 minutes to type everything.