I doubt this - Melvin Capital is not at risk of BK.
But if the fund gets wiped out (which I also doubt), who is going to buy your ridiculously priced long position then, huh?
$GMEhttps://twitter.com/WSBConsensus/status/1354233408835219461 …
-
-
Replying to @MarkGutman9
What would technically happen to the position if the fund goes tits up ? Does the bucket pass onto the ib that dealt / hedged Melvin ?
3 replies 0 retweets 1 like
Replying to @Marco_mmabjj @MarkGutman9
In principle the position gets liquidated by the PB before the fund is out of capital (ie at the point they can’t/won’t make a margin call).
12:56 AM - 27 Jan 2021
0 replies
0 retweets
1 like
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.