Does anyone have thoughts on this? I'm seeing claims that somehow what the reddit did (encouraging people to bu a stock that had been massively shorted, thereby driving up costs and creating huge losses for the group that did the shorting and then had to cover) is illegal. What could possibly be the grounds for that?
Also if the holder of a short positions goes bankrupt and can't buy back the shares to close out their short position, who eats that loss? The actual owner of the share? The lender/broker?
Do you think buying up massively shorted stocks is the next big trading trend for the little guy? Other thoughts or comments on the situation.
I'm a very simply buy and hold mutual fund investor so while I have a basic knowledge of shorting, things like naked shorting and borrowing fees are outside my wheelhouse.
