Okay, I know it's unpopular to be bearish on this stuff, but I've got concerns. I hope I'm wrong tho.
- Trading volumes over the last couple of weeks can potentially cover short positions, thus short sellers may have already realised losses (as they fucking should).
- Short interest data is very laggy. The only 'up to date' source I know of is S3 Partners, and I don't understand their data collation/estimation methodology at all.
- I, as a retail investor, cannot differentiate between short ladders and institutional investors who went long with retail investors early tapping out.
- Related to point 3, I'm worried people are underestimating hedge funds more generally/are getting cocky and will be left holding the bag for hedge funds who went long.
I want to be proved wrong, even though I've already cashed out because the uncertainty above was making me uncomfortable, but more than wanting to be proved wrong, I don't want chapos getting fucked if I'm right.
Much love comrades
Yeah, be careful out there folks. Remember the house always wins. Citadel is robinhoods client and buys orderflow and investor data from them. Brokerages are going to protect themselves and clearing houses, who could go underwater if this continues (not from hedge fund short squeeze but from retail investors losing money if this shit goes to 1000 then suddenly crashes). If retail clients can’t pay their losses, that would be a mini-2008 financial crisis in and of itself. They will not let that happen. Someone’s on the hook, and it’s not going to be financial institutions.
The house always wins.