Comments by "Zach B" (@zachb1706) on "FINAiUS" channel.

  1. When shorting, your broker requires you place up a portion of your investment as collateral in case you default. Every time your position drops in value below what your collateral supports, your broker will make a “margin call”, asking for more money to be placed as collateral. If you cannot meet this request, you are forced to close your position prematurely. That’s what happened here. Because the stock rose so quickly, it forced companies to close their position, buying back stocks to return to the lender, causing prices to rise further.
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  2. The exact sane thing can be done with long positions, it’s called a “pump and dump”, and just like a “short and distort”, it is completely illegal
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