I got three smart friends on a call to try and make sense of the $GME situation. This thread is my current best model.
TL;DR: The longs are playing the short game, the shorts are playing the long game.
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The fact that short interest stayed fixed at 71M probably means that many want to short and are constrained by the number of shares available to borrow (naked shorts are negligible). If a short cashes out, another short-seller will just come in $1 higher.
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If you read my research note it explains why $GME shs shorted has not declined.Older shorts are getting squeezed, but there are many shorts picking up the returned stock borrows & initiating new shorts.Its like trench warfare, first line gets decimated, next line fills the breech t.co/CA8LqYGLWd
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