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Comment by stonogo

Because Gamestop is a business that is in the process of adapting to changing market conditions, which generally requires capital, and when market analysts go big on shorting in public it depresses stock price, and issuing stock is a major common method by which businesses raise capital.

As another example, lots of people assume Elon Musk got mad at short sellers because he took it personally, when in fact they were fucking with his ability to raise money he needed to ramp up production and meet manufacturing goals.

These things don't happen in a vacuum. Large funds making public bets against a company have a material impact on that company's liquidity.

parent stonogo 5 years ago

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