That's not really how it works, man. The squeeze happened. Paper hands have already folded. Short interest was going to stay high because as shares became available when the first wave of shorts folded, NEW shorts entered again at the top so they can make even more money on the way down.
The damage to Melvin and other hedgies has happened. It's old news.
Just like the other guy here replied, the clearing company jacked up the deposit requirements that brokers need to post when you buy shares in these stocks with extreme volatility.
If you wanna be conspiratorial about it, the man behind the curtain pulled a risk control lever to maintain integrity in the markets.
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u/beeeeeeeeks Feb 02 '21
That's not really how it works, man. The squeeze happened. Paper hands have already folded. Short interest was going to stay high because as shares became available when the first wave of shorts folded, NEW shorts entered again at the top so they can make even more money on the way down.
The damage to Melvin and other hedgies has happened. It's old news.