A hedge-fund believes that the milk consumption will go to zero, so they borrow the 100 cows for one month and sell them for $1 each.
Then they borrow them again, and sell them once more for 90c. Certain that they will worth $0 at the end of the month
A Redditor notices this. She knows that in a month's time, the hedge-fund will have to buy 200 cows, and there are only 100 available.
Her plan is simple. Buy all 100 cows, and at the end of the month, when the hedge fund will have to buy the cows back(twice), she will be able to dictate the price.
Hedge-fund cries foul. Doesn't like being beaten in it's own game.
A hedge-fund believes that the milk consumption will go to zero, so they borrow the 100 cows for one month and sell them for $1 each.
Then they borrow them again, and sell them once more for 90c. Certain that they will worth $0 at the end of the month
A Redditor notices this. She knows that in a month's time, the hedge-fund will have to buy 200 cows, and there are only 100 available.
Her plan is simple. Buy all 100 cows, and at the end of the month, when the hedge fund will have to buy the cows back(twice), she will be able to dictate the price.
Hedge-fund cries foul. Doesn't like being beaten in it's own game.
Milk consumption doesn't even matter.