General Discussion

SeattleVet

(5,477 posts)

27. That's called 'naked shorts' and it's illegal.

Thu Jan 28, 2021, 03:29 PM

Jan 2021

There is no way that the shares can actually be cleared and traded, since there are a LOT more shares shorted than actually, physically available. IIRC, it was something like 138% of the available shares.

Years ago a short required an actual stock certificate to be traded. Several years ago that changed, and the hedge fund vultures figured out that they could short more shares than were really on the market, and hopefully not get caught.

The current situation has exposed them, in a much bigger way than just losing a few billion bucks.

I get the feeling that some of the big guys are going to be in a ton of legal trouble when the dust finally settles on this.

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"The Squeeze of a Lifetime" or The GameStop stock frenzy, explained. Vox [View all] sagesnow Jan 2021 OP

Yes. BlueTsunami2018 Jan 2021 #1

As much as I like to see hedge fund guys get burned, this could go south in a bad way Fiendish Thingy Jan 2021 #2

👀 underpants Jan 2021 #3

The irrationality can only go so far... TheRealNorth Jan 2021 #4

It's a pyramid scheme, like all the others FakeNoose Jan 2021 #5

It's essentially turned into a well-organized 'pump-and-dump' scam. SeattleVet Jan 2021 #6

The irony of it all is that the people that began it are masquerading like they are "Robin Hood" TheRealNorth Jan 2021 #7

You don't get it. They (the Reddit folks) DON'T CARE that they lose money. Tommymac Jan 2021 #32

I think rather than PnD the Redditors see it as a way coti Jan 2021 #16

Would shorting Gamestop now make sense? Renew Deal Jan 2021 #21

It definitely could. nt coti Jan 2021 #22

Well the shorts came in pre-market and took GME down from 450 or so to the 270's. coti Jan 2021 #24

LOL, they halted it a minute in. nt coti Jan 2021 #25

they've already shorted more shares than there are available to sell fishwax Jan 2021 #23

That's called 'naked shorts' and it's illegal. SeattleVet Jan 2021 #27

Most of them aren't trying to get rich Ex Lurker Jan 2021 #30

i saw a news report on this and couldn't understand it....... Takket Jan 2021 #8

It is just naked gambling. Blue_true Jan 2021 #11

You're also right that the market is basically gambling coti Jan 2021 #14

With the mathematical algorithms that the big players employ, all Blue_true Jan 2021 #28

The Reddits did it to shine the light on Hedge Fund Scumbaggery. Tommymac Jan 2021 #33

Did I hear right, that hedgfunds can trade after market hours? sarcasmo Jan 2021 #34

I was under the impression that the Hedge Funds would SELL Blue_true Jan 2021 #9

I believe that so many of the Independent Redditt traders bought so many put options that sagesnow Jan 2021 #12

You're correct. nt coti Jan 2021 #13

Proof positive that a blind squirrel can find an acorn. Blue_true Jan 2021 #29

Yep. The hedge fund guys got out-hustled by a subreddit thread, and now they're all butthurt. Volaris Jan 2021 #10

That's it - Wall Street and investment banks have been fucking this country for decades . . . . hatrack Jan 2021 #18

There it is! Hugin Jan 2021 #20

It's up $135 this morning -pre market superpatriotman Jan 2021 #15

Might be fun to watch when the market opens. coti Jan 2021 #17

Dang. I sold my AAL stock last week Generic Brad Jan 2021 #31

This is the overall problem with the stock market and the way companies are managed Buckeyeblue Jan 2021 #19

This short-sell stuff is part of the 2008 market crash MissMillie Jan 2021 #26