Post by Al-O-Meter on Jan 27, 2021 15:03:30 GMT -8
It is going to be easy to see which party is beholden to Wall Street. Watch to see who sponsors the legislation to combat the new attack on hedge funds.
Some very clever people have figured out they can crowdsource attacks on hedge funds. In just one day, today, there was one major hedge fund that lost 33% of its total value. The idea on how to do this is catching on and every hedge fund is terrified. Some trading platforms have jumped in to stop the attack but watch for the government to work faster than you thought possible to pass a law making these currently legal attacks illegal.
The way the attack works is that traders see which stocks have the highest number of short sales. Hedge funds are the most common source of these short sales, and they get more valuable when stocks go down, but drop in value when the stock goes up. These traders then broadcast on social media to massive numbers of induvial investors buy the heavily shorted stock which sends it skyrocketing which creates what is called a “short squeeze” on the hedge funds in which the hedge funds have to pour in massive amounts of cash to cover their short bets.
The attack which skyrocketed GameStop and crushed hedge fund Melvin Capital and Maplelane was first. Then they did the same thing to AMC stock. It is looking like American Airlines may be next. Using a broadly distributed base of small, induvial investors they can wipe out billions of Wall Street dollars in hours. There is no way Wall Street doesn’t call in favors from politicians to stop this.
Some very clever people have figured out they can crowdsource attacks on hedge funds. In just one day, today, there was one major hedge fund that lost 33% of its total value. The idea on how to do this is catching on and every hedge fund is terrified. Some trading platforms have jumped in to stop the attack but watch for the government to work faster than you thought possible to pass a law making these currently legal attacks illegal.
The way the attack works is that traders see which stocks have the highest number of short sales. Hedge funds are the most common source of these short sales, and they get more valuable when stocks go down, but drop in value when the stock goes up. These traders then broadcast on social media to massive numbers of induvial investors buy the heavily shorted stock which sends it skyrocketing which creates what is called a “short squeeze” on the hedge funds in which the hedge funds have to pour in massive amounts of cash to cover their short bets.
The attack which skyrocketed GameStop and crushed hedge fund Melvin Capital and Maplelane was first. Then they did the same thing to AMC stock. It is looking like American Airlines may be next. Using a broadly distributed base of small, induvial investors they can wipe out billions of Wall Street dollars in hours. There is no way Wall Street doesn’t call in favors from politicians to stop this.