Citi: Euphoria Worse Than The Dot-Com Peak
Hedge funds that bet against GameStop and other stocks have been crushed by the Reddit army -- and they're infecting the rest of Wall Street.
Hedge funds that bet against GameStop and other stocks have been crushed by the Reddit army -- and they're infecting the rest of Wall Street.
The kind of craziness we’re seeing right now is not atypical of the kind of craziness you tend to see when we’re ready for a little bit of a downturn.
Such damage to general asset prices, producing the worst week for the S&P 500 Index since October, pales in comparison to what would could go wrong.
The money allowed the investors, or speculators, to “pile drive” the hedge funds, forcing them to cover their short bets for substantial losses.
Omega Advisors chief believes the GameStop frenzy will end badly. "I’m not damning them. I’m just saying this will end in tears."
After manipulating the price of many stocks with high short interests, silver may be the next security to go wonky. But remember the Hunt Brothers.
"I'm going to take a break for now," Cohen said, citing "personal threats" from GameStop traders incensed by his firm's efforts to subsidize shorts.