We have all read the basics of shorting stocks and how these funds took short positions in AMC. We have also heard about APES who hold AMC need to hold their positions and maybe acquire more as the retail investors push the price higher and higher. But what can the hedge funds do to disrupt or destroy our potential profits in AMC? Trading halts are temporary and will not impact the stock’s trajectory – it may scare a few newbies, but that is all. The funds can sell AMC shares that the really own in order to drive down the price – but that is also temporary and given the numbers of retail investors who continue to buy, that also should not be successful in the longer term. So what other moves can the hedge funds do to disrupt the short squeeze and a rapid increase in share value?
The hedge funds do not stand alone. There are a lot of very rich and connected individuals and businesses that are tied in with them. Their illegal activity (and yes, this kind of shorting is illegal) has been making a lot of money for these people for a long time. So expect to continue to see crazy amounts of money thrown at keeping the price down at strategic points.
And expect the media stories to get worse. We’ve already seen over the past few years how the media doesn’t really have much care about the truth in stories but rather tells the story as they see. Even if you didn’t see this earlier it only takes an Ape a short time to look at how all the major outlets are talking about what’s going on now. Not one single “real news” has done a story about the illegal shorting and they probably never will. We will always be sold off as a bunch of dumb money people throwing stimulus checks at a meme.
You’ll also see increased bot and plant activity in forums, reddit, comment sections, FB groups, etc. and, whenever they can, full on censorship and disruption of those. Again, this has been happening outside the stock community for the last few years and we are seeing it here now too. Just the fact that a channel like Matt’s gets labeled as “Harmful and Dangerous” and shut down while “real” financial advisors continue to hum along happy was a wake up call for people that were doubting this.
The GME run up really only stopped because Robin Hood and a couple other brokers pulled the plug. This was not the same as a normal market halt. This was blatant manipulation. A very large percentage of retail investors were using RH and they had built themselves up as the broker of the people. Obviously they were not. I would be shocked if any broker pulled this again but that doesn’t mean something else may happen at this tier.
So continuing to throw money to stub the growth and continuing the psychological efforts are the minimum we can expect. It can get a lot more shady from there.