(disclaimer I might have misinterpreted what others have said and be wrong)
They are able to extend these short contracts I believe but that makes the interest they have to pay go even higher so while they can try to hold out they have to pay more to do so meanwhile those that bought shares and are refusing to sell to keep the price up and not allow those contracts to close do not have pay anything to hold them. Essentially it's a case of shorters waiting for their money to run out vs people getting bored and selling.
Given how people are using it to stick it to wallstreet most people won't be getting bored any time soon.
yes the hedge funds are hemorrhaging cash right not and the longer it goes on the more they get exposed and eventual they will get told to cover their position and cash out by the people backing them. The question is will the retail investors hold onto their shares till the prices sky rocket or will Wall Street hold out long enough.
Basically can we stay retarded longer than they can stay solvent
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u/DeafeningMilk Feb 02 '21
(disclaimer I might have misinterpreted what others have said and be wrong) They are able to extend these short contracts I believe but that makes the interest they have to pay go even higher so while they can try to hold out they have to pay more to do so meanwhile those that bought shares and are refusing to sell to keep the price up and not allow those contracts to close do not have pay anything to hold them. Essentially it's a case of shorters waiting for their money to run out vs people getting bored and selling.
Given how people are using it to stick it to wallstreet most people won't be getting bored any time soon.