When HFs shorted the stock initially it probably was worth 25 dollars. They’d have shorted it to ten dollars say following the announcement of store closures and bad trading Possibly COVID related In respect of GSE.
When you short you usually are borrowing or loaning shares from brokers In the hope that you say are lent the shares at 24 dollars and when they hit say 10 dollars you buy the shares then and return the original amount to the broker pocketing the 14 dollar price difference as the gains.
When the prices shot up they’d have had to keep buying them at various prices to cover there original ones to limit exposure and damage. Say when it shot to 100 dollars they’re 1000 percent loss, when it went to 471 they were looking at 4710 percent loss. So each time it hit a milestone they’ll have bought back in To lessen that loss percentage, They may have also when it hit 421 shorted the stock again to a value to recapture further losses that they were exposed to, they’ll have borrowed capital from somewhere or plundered hedge fund reserves to cover it however with it now sliding down 380 percent in two days it would have been wise to have shortened it to pay the interest from brokers for the loaning of the initial certificates and anymore they may have loaned along the way.
Closed at 90 I was actually one que! That said I think it’ll open sub 50 as mentioned earlier. Crazy.
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