/biz/ - Business & Finance

I am financially ruined.

Hi /biz/, I work at a hedge fund (actually, part owner) & now that the dust has settled and we're way ahead, I'm happy to explain to you all what the plan was, and why & how it worked.

First, we were eating a ton of shit on our GME shorts. When it went to $120 we realized there was autistic memetic momentum behind it and covered entirely/closed our shorts.

However, we saw this as an opportunity, so we started to drive the narrative to keep buying GME to retail for the inevitable "short squeeze" with the intent of shorting again -- even more so than we were before -- with a PT of $400 to begin shorting.

This number was of course hit, and we're now well in the green above and beyond anything we lost.

Why is this working? Well, we were betting on retail running out of steam i.e. running out of money. Most retail buyers don't DCA, they throw everything they have all at once into a stock to try to achieve maximum gains. Most of these plebs don't have the income to continue to throw money, and once they're in the red become desperate and sell. So the idea was we'd wait for retail to throw all their money in, re-open shorts. That's exactly what happened. There are no new retail buyers coming in, and slowly you're seeing more and more capitulation happening from remorseful buyers.

Ultimately we're looking for a price sub $100 to close these shorts.