Correct me if I am wrong but Citron is basically hedging their bets that the price of gamestop will fall dramatically and go bankrupt. They short-sold, so they will by Gamestop shares at whatever price it is at in the future (they want them to fail). WSB, realizing this, is artifically pumping up gamestop to the point where Citron will have to buy a crap ton of super expensive shares making the reddit people very rich in the process. So it's a battle of who is more influential at manipulating the market. Tons of people are very pissed off about it and it's really funny
https://www.bloomberg.com/news/articles/2021-01-22/gamestop-tug-of-war-gives-reddit-army-a-win-on-record-volatility
When you sell a stock short, and it goes to $0, you make a profit of 100%. When you sell a stock short but it goes higher, your losses are potentially infinite

  • invalidusernamelol [he/him]
    ·
    4 years ago

    It's still a racket. They take ~ 30% for early withdrawals. Plus a flat fee. If you know for a fact that you'll never need that money, then sure. Otherwise, you're just giving them money.

    If you have an employer matching plan though, it's a different story. As your vested match usually will cover the fees so you aren't losing money you were paid of you have to pull out early.