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Posted on 1/29/21 at 6:18 am to TurkeyBaconLeg
Exactly. They would sell the stocks in the hedge fund. When it dropped 30% they would buy it back and pocket the money they made. Reddit sent GameStop to the moon after they sold and made the hedge fund replace those stocks (because they were their clients stocks) at ridiculous prices and cost the hedge funds millions.
Now they are trying to say it’s illegal when the hedge funds were doing the shady shite.
Now they are trying to say it’s illegal when the hedge funds were doing the shady shite.
Posted on 1/29/21 at 9:04 am to TurkeyBaconLeg
The crack pipe meme is a good way to explain shorting a stock...In this example, regular investors drove up the price of the crack pipes, forcing the hedge funds to pay a lot more than $10 to get a replacement crack pipe...thus they lost money.
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