That does seem to be the theory being pushed on Reddit - that the hedge funds are just buying and selling between themselves at lower and lower prices to ‘manipulate the market’ but that the actual volume of shares being traded is way way way below that needed to cover the short positions.
I don’t know how true that is and I’m not clever enough to see the volumes or even know how big/small they are relative to normal times.
They don’t need to. Just hold the ones they have. It’s a question of supply and demand - tt’s the hedge funds who will have to buy at some point to cover their short positions. That’s the squeeze people are talking about.
In a battle of retail vs wall street where retail are banned from buying shares on almost every platform available it’s no surprise the price is plummeting. A single day of free, legal trading will put it right though
It’s actually outrageous that this is allowed to happen. This stock is clearly not worth hundreds of dollars, but only allowing once side of the ‘fight’ to make non selling trades is appalling.
The fact that the clearing house is increasing their required margin by 250% for their broker-dealer (according to the excellent Tweet from Freetrade, thanks folks) is surely an indication that the price is just as likely to shoot up as it is to go down, isn’t it?