Here's my understanding of what's happening: GME has approximately 70 million shares outstanding. The vast majority of those shares have been borrowed and sold to someone else. Many of those shares have been borrowed and resold again. That's how you end up with an institutional ownership of 110%, and a short interest of 139%. Now obviously this would balance out if transactions from short sells were excluded from the overall numbers, but it's my understanding that they aren't. So you get a distorted number of long & short holdings.
Robinhood generates significant revenue from lending its users' shares to shortsellers without telling the users and without giving the users a cut. Robinhood's revenue is like two thirds PFOF and one third stock lending iirc. If shorts are 140% of the float then longs must be 240% of the float. Robintard A buys shares on robinhood, robinhood lends shares to a hedge fund, the hedge fund sells the shares short to Robintard B, and so on ad infinitum. It could end up 1000% short and 1100% long.
If you read the white paper "counterfeit stock 2.0" within the article @guru posted it can be much more than 140%. if I read that right it could be a substantial amount more. They are counterfeit according to the article via , Primary Brokers, DTCC scam etc. so I don't think true short interest would show up in any data. Crazy but seems interesting. Think about how high of a short squeeze this has been and seems very plausible they got caught with their hands in the cookie jar. This can send a ripple.
%% Good points. Let's say you are right.[ I'm not saying Fannie or Freddie deserved to live\ but that is water under the bridge] Most stocks that trend like GME are tech; some specialty retail. Looks like Melvin Cap got a reminder on risk management\ but the red chart problem for the longs is really who wants a $400, $380,$325 Game Stop?? Good link supporting your points. AMC chart looks almost as bad/ but it paid dividends for so long/who knows??
Listen to this guy..Its simple arithmetic.."Synthetic longs" are created via the shorting process...Also,the short interest/float numbers are way off due to a similar nuance..
NO. ITS A CONSPIRACY. THE FICTITUOUS SHARES ARE PART OF A CONSPIRACY BY HEDGEFUNDZ TO FUND JEWISH LAZERS FROM SPACE.
The only way way AMC and GME can maintain their high stock price is if they issue a lot of new stock at this price and invest it in bitcoin. Shortsellers should be scared shitless of shorting bitcoin.