Something I remember from Series 7 securities school years ago when lecturing about the dangers of sellng short. (All these guys getting killed in the short squeeze could have saved themselves from all this had they also purchased calls... "just in case".)
hedge fund is just a name. They rarely hedge, and many having billions essentially just swing for the fences.
It is difficult to understand initially but with experience you can understand that having a backup plan is paramount in trading.