In fact, looking into this a little deeper, if indeed there is any truth to the speculation, then someone, somewhere, is committing large-scale securities fraud.
I’m not sure of the specifics in USA law (which would apply, since $GME is traded on NYSE) but if the spotlight falls on the hedge funds with open short positions in the coming days’ reporting schedule, they will have to buy the shares - at any price - to avoid forensic investigation, possible deregulation, wide-spread reputational damage and criminal charges against execs.
Imagine more than one hedge fund competing amongst themselves to buy up as many shares as they can to close their position and avoid the heat - there’s only one way the share price will go, and quite quickly, I would imagine!
Of course, if the shorts are already well on their way to being covered (by taking profits from existing long positions on Silver, for example), then it’ll probably all fizzle out to nothing and GME will settle back at a fair market price.
Lots of people will be watching with interest when the market opens today, for sure!
Sentinelgre
(The Spaniel in my photo is Archie)
505
Is the limiting of certain stocks to sell only or the increase of capital to 100% (I understand clearing houses normally only ask for 5%) unprecedented?
I am just trying to see if this has happened in the past as I remember you could still buy Wirecard when it was very publicly known that they were insolvent.
Lots of platforms are restricting trading which is probably driving the price down
Do meme investors have enough funds to pump the price once the floodgates are lifted?
Investors does have enough to pump up the price but right now nearly every platform have restriction in how many stocks you can buy. There is no limit on how many stocks you can sell hench more sellers than buyer right now.
So if the conspiracy theory is true and higher powers are restricting buys. They will probably gradually increase the buy limit and by that time the options would have expired?
seems some fund are still buying GME by the bucket load… the squeese isn’t over, shame retail investors can’t buy (to protect ourselves from ourselves)
