• howdyoudoo [comrade/them]
      ·
      edit-2
      4 years ago

      When you short a stock, you borrow it from the broker and sell instantly. you pay back the stock later. If stock price falls, you buy at the low price and pay it back, making profit.

      Naked short is when you sell a stock without even borrowing it. This probably happens all the time, but with GME it is undeniable because 150%+ of the total shares were shorted. More shares were shorted than actually fucking EXIST. Thus, there was tons of naked shorting, it's just arithmetic.

      naked shorting is actually illegal, and SEC didn't do shit about hedge funds doing it. reddit actually did what the SEC is supposed to do, by checking the shorting by driving the price up.

    • redthebaron [he/him]
      ·
      4 years ago

      like it is either a weird ben brain melting thing or he is trying to imply that they took the "shorts" as in short stocks from the hedge funds