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(I wouldn't be surprised if Mr $50mm position has shed a sizeable chunk of that.)
Lol, he just posted an hour ago he is still in his position with no exit strategy
https://www.reddit.com/r/wallstreetbets/comments/l6ekdz/gme_yolo_update_jan_27_2021_guess_i_need_102/ -
Seems a lot of the big guys have taken new short positions out on the assumption that the stock isn't going to go any higher.
This makes sense. Sad though because of the institutional shorted with deep pockets.
greentricky
ChainBreaker
@Greenbank
Seems a lot of the big guys have taken new short positions out on the assumption that the stock isn't going to go any higher.
Some sites (such as Ortex) are reporting the float on loan under 100% now, which would indicate the longs are starting to sell up and the shorts are starting to be able to cover. (I wouldn't be surprised if Mr $50mm position has shed a sizeable chunk of that.) Last time this stock was under 100% float on loan was June 2019 (which was about the time that he started to accrue his $50k position.)
One way to cover a huge loss going one way (after having to cover your position with $$$$) is to get the majority of it back on the way back down by shorting it. If too many people think the same then it just continues as it creeps back up to >100% float on loan and the squeeze is on again. So it's either up or horizontal for a long time unless something big happens.
The second squeeze is the borrow cost which is running at ~25% (annual) right now. That's going to hurt a lot for anyone with a sizeable short position but, as always, favours the bigger firms.