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NW IN | The corollary between the Big Short and $GME is correct.
IMHO the issue is the derivatives market. Trading shares of a company is fine, but it's the options where this one got sketchy. That's essentially how the hedgies got 140% short...selling the OTM calls, thus the gamma squeeze. I think the fuse is still lit on this one due to the fact that the longs are holding with diamond hands and there appears to be a LOT of short calls outstanding with NO way to cover.
The housing debacle was completely built on a house of cards due to bundling bad mortgages in derivatives and then pawning them down the road. Again...derivatives! | |
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GameStop....
