As long as WSB continues to Diamond Hand, they (SHOULD) win. But we don't know because the system is playing dirty..
It's actually pretty straightforward, the hedgefund pays interest every day, until they cover, (buy back the shares they sold, which they do not own, (that's what shorting is), and they shorted more shares than exists. ).
The reason the whole system is laticed against WSB, is because 1, to send a message, we hate you, 2 , because if very large hedgefunds have to Liquidiate to cover, That will send shockwaves through the market, outcomes of which no one can predict.
For example, 400 billion dollars put into the market could have 4 Trillion net effect on value. Any time you pull on these levers, if there is enough movement, it sets off reactions.
The unpredictability is what the RICH who owns everything is trying to prevent. But again, the play on WSB's end is straightforward and simple, HOLD, and if ballsy enough, buy m0ar g1mshta(K.
Overall, the risk isn't that it's a wrong financial decision, it's that the system is deliberately cheating the winners here.
We don't know how this will turn out, will it go through the courts, will they just let a few of these hedges lay down.
This is not financial advice, this is just a simplified description of what's happening.
Structurally, there are alot more forces at play than the size of the losing Hedgefund, that's why there are so many parties involved.
If it was the case that they could just pay 90Billion dollars, they would, that's nothing, what they don't want is a market shockwave.
A huge issue being debated now is how to divvy up the users post event, Fidelity / Vanguard are getting boosted right now , the other houses don't like that , So they're working it out, how to save face, how to save users. At the end of the day, their goal is that the users continue to gamble and play on their network.
The crisis for them is, all of a sudden people are only gambling or planning to only gamble at specific casinos, forsaking the rest of the las vegas strip.
