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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Here's a thought:  Sometimes both sides get ruined in a short squeeze.  I bet no one told WSB that.

Stutz motors crushed the shorts when the CEO bought up its shares.  However the leverage it required bankrupted him, and his creditors ended up with the company.

I notice lots of people on WSB using leverage.  It's not an army of people with $500 of fun money.  [/quote]

So far this year, by driving up shorted stocks, Gamestop and others, the redditors have cost HFs $70b.  This year.

That's not just fun money either.  [/quote]

Uh no.

1.  These companies are a small fraction of the $70b.  That's all the unrealized losses in the US stock market, which has been going up.  
https://www.marketwatch.com/story/short-sellers-down-a-net-54-billion-on-u-s-positions-so-far-this-year-data-provider-says-11611866736

2. It's not actually $70b.  It's $71b losses and $17b of gains, leaving a net of $54b. Ortex is the source.

3.  You can't count the losses until the music stops.  Nobody knows what price these stocks end at, or whether the shorts come roaring back if the price goes down.

I don't like short sellers.  Really I don't.  But don't be deluded by people passing around a number that you don't understand.  Much as I dislike what they do, I worry more that regular people are getting swept up into the reddit and will lose money they can't afford to lose.  Yes, you see the occasional warning.  But it's drowned out by the near-universal confidence displayed on WSB.  If you think they already succeeded at a $70B goal, you are already operating on misinformation.

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