Quote:
Originally Posted by Fat Elvis
The issue with Gamestop and what WSB was trying take advantage of was that the amount of stock shorted exceeded the actual amount of stock in circulation. Technically, that should never happen; theoretically, short positions can never exceed 100% of the outstanding shares because you are borrowing existing shares. Hedge funds, however, held a short position in Gamestop that represented 140% of the shares.
|
That's exactly what happened. Now WSB is trying to pinch the hedge funds for shorting shares they didn't have. The SEC should have had better safeguards in place to prevent shorts from ever getting more than 100%.