The share of the video game shop chain Gamestop, which has become the symbol of a force measurement between hedge funds and an investor community, was temporarily added by around 60 percent on Tuesday. Already on Monday, the course at the Frankfurt Borse was about 30 percent. After the crash on Tuesday afternoon, however, there was again a slight starting entertainment, currently the stock records around 90 euros. Last Thursday, the stock was still significantly higher than 400 euros, early January it was 14 euros.
Shares among other things by Gamestop and AMC have been particularly in demand in recent weeks, especially at users of the platform Reddit. In doing so, they were against so-called shortshell (to German short sellers) such as Citron Research and Melvin Capital, who had betored massively on falling courses of said company. As a result, stock prices shot up and some hedge funds suffered extremely high losses that are currently being paid to around 20 billion US dollars.
Less empty sale?
In the meantime, short sellers had significantly reduced their positions at the Gamestop share, writes the Handelsblatt citing data to the financial service provider S3. Accordingly, the shortseller had their quota, with which they had speculated on falling courses, now lowered to 53 percent of tradable shares. At times, short positions had been addressed to significantly over 100 percent of the share.
A short sale refers to the strategy of lending stocks in the hope of falling prices – to buy them when the loan agreement becomes fally, to buy and return favorable. But the price rises, then makes the short selling losses.
If another investor also includes such a bet on the shares that have fallen within short-selling, then the stock of empty sale positions are also due to the existing shares, explained a spokesman for the German stock institution against our site. In Germany, such short selling positions from 0.1 percent of the number of shares shall be reported in the financial supervision BaFin, from 0.5 percent, there is a decisive obligation in the Federal Gazette, so the stock institution.
The Short Ladder Attack
In the community R / Wallstreetbets on Reddit, some dubbing the heart of investor movement, apparently many continue to be fully on buying and holding the Gamestop share. In a much-discussed contribution, the hedge fund is accused of printing the price of artic. They became one "Short Ladder" follow these strategy and push each other back and forth to the shares at high speed.
At the same time, the trading statements at TradingApps like the Robinhood, which is now heavily strongly, had taken the opportunity to maintain the small investors. And last but not least, the hedge funds are also evident to conceal the emission of their short selling.
News from the Sherwood Forest
TradingApp Robinhood meanwhile shared with $ 2.4 billion in investors collected. Including a financial syringe of Friday, the most recently rewinded funds amounted to $ 3.4 billion, exploited the US company in the company’s blog. Robinhood is given in view of the youngest speculative boom under increased prere, collateral for massively increased trading volume that is handled over the app.
A report from Politico to Robinhood CEO Vlad Tenev on 18. February at an appeal in the Financial Committee of the US Representative House to the Gamestop Borsen War speech and answer. US politicians such as the committee-conducting Democrat Maxine Waters had the suspicion that hedge funds could have influenced Robinhoods’s comment for trade restrictions. Often the financial service provider is called Citadel, which operates a hedge fund and offers trading systems. As a market maker, the company also maintains a close relationship with Robinhood. Citadel had reported after so far, to be responsible for the restrictions.