The author doesn’t understand why people buy GME. It’s not to push the price up in a coordinated way or something else like that. It’s because it is understood that Citadel never covered it’s short position from January, after doing massive naked shorting to drive the price of GME down to zero. There is a belief that they are kicking the can further down the alley by creating more and more synthetic shorts, hidden in deep ITM long or other mechanisms, because they cannot actually cover their current position. And that eventually something will force them to cover, resulting in a massive short squeeze.
It’s not nihilistic at all, people who participate in this because they actually believe their analysis is correct and a short squeeze is imminent. That’s why in this framework buying at a cost below the floor (currently discussed at $20mio per share, seriously) is considered cheap.
The research people discuss on this topic on r/superstonk is interesting to read just to get an idea of what they are doing. Not that I’m saying a short squeeze will happen or not, I personally have no idea, but it’s a fascinating niche to become familiar with.
It’s not nihilistic at all, people who participate in this because they actually believe their analysis is correct and a short squeeze is imminent. That’s why in this framework buying at a cost below the floor (currently discussed at $20mio per share, seriously) is considered cheap.
The research people discuss on this topic on r/superstonk is interesting to read just to get an idea of what they are doing. Not that I’m saying a short squeeze will happen or not, I personally have no idea, but it’s a fascinating niche to become familiar with.