Originally Posted by
Nobody
Okay, I think I get it now. From what I understand, End's analogy is wrong.
Somebody at work explained it to me like this. So short-sellers are invested in a company failing, not succeeding. To do this, short-sellers take a customer's money for the purchase of stock; but the short-sellers don't have to transfer the stock until a later date. So if the short-seller thinks a company is going to fail, they will buy the stock at a later date, then transfer the stock and split (and keep) the difference from the customer. Problem is, when they do this, they now are invested in the company failing and will do everything they can to make that happen. And that's pretty fucked up.
So the redditors realized a bunch of shorter-sellers had to purchase their Gamestop stocks soon and they realized they could jack up the price and cause those shorters to have to pay more for the stock than what their customer has given them. Okay, that's interesting. So by piling money on and jacking up the price, then the shorters come along and bring the price up more, then the redditors can take advantage of that, sell, and make a profit, interesting. And they shouldn't lose anything, if they put a stop-loss and invest before the shorters have to buy back their stocks. I think I get it now. That's actually pretty genius. And they are stealing from criminals, so it's hard to see much wrong with it if anyone believes in some kind of justice for wrongdoing.
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