Comments by "Debany Doombringer" (@debanydoombringer1385) on "The Revolution Will Not be Livestreamed (The Great Gamestop Liberation)" video.

MrBrenman I'll explain. To short sale a stock, you loan it to Wallstreet at a certain price with the understanding you will buy it back at a certain date/time. The idea is you loan it to the market at like $4 a share. When the time is up, if it works, you buy it back at $2 a share and you doubled your money. You're betting on the stock going down instead of up. Since the stock went up, the hedge fund now owes all those people a lot of money because they HAVE to buy it back. The reason it's a nasty practice is because the hedge fund usually own enough of the stock that just flooding the market with their shares is enough to drive the price down. Edit to add: This also a common practice to do a hostile takeover. Then you liquidate the assets and make a ton because it cost you nothing to buy it.
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@grsshppr7659 Last I looked the stock was up like 2,000%. They will have to pay back their stock loan at some point. Either way, the investors aren't going to be happy as long as everyone holds out.
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You're correct about them filing bankruptcy, but they just lost their investors a hell of a lot of money. Their reputation is dirt now and it's not likely they'll recover. Hedge funds that have those kinds of losses don't usually get reinvested in. Those guys just redistributed a lot of wealth without using the government. Good on them.
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