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    Business & Finance The GameStop Short Stock Sensation

    *shrugs* They're not doing it out of any sort of charity, they think it's an investment that will pay off in the long run.
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    Business & Finance The GameStop Short Stock Sensation

    Huh? It's reasonably self-evident that you don't need any collateral to sell what's already in your hand, only to make leveraged buys. It's like buying a house. You need to take out a loan unless you're rich enough to buy it with cash, and the amount of down payment and interest rate you have...
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    Business & Finance The GameStop Short Stock Sensation

    The collateral ratio required is a function of the price and volatility of the stock, both of which have skyrocketed for GME. It's not some new rule that they invented just for this situation, it's a general thing. (Think of it this way: it's basically a fractional banking system twice over...
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    Business & Finance The GameStop Short Stock Sensation

    Money isn't selective about what it's spent on, but the collateral ratio requirement from DTCC is different from stock to stock based on their volatility stats, which means the same amount of collateral will not be sufficient guarantee for the same amount of sales of different stocks. Nah...
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    Business & Finance The GameStop Short Stock Sensation

    Naked shorts are a relatively high risk bet, but they're a fairly normal part of trading tactics. The hedge funds just got rather overtly greedy by pushing naked shorts hard and they got burned hard for it. The reason it's considered a tolerable risk is it can legitimately make a lot of money...
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    Business & Finance The GameStop Short Stock Sensation

    Selective enforcement of rules on the job isn't strictly speaking illegal; even in principle it only rises to the level of workplace discrimination when it goes beyond a certain point, and in practice it's even more difficult to actually prove. Given the size of online entities relative to the...
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    Business & Finance The GameStop Short Stock Sensation

    "We have a basic English profanity filter, you can't expect us to do any more to stop rules violations" is not really an acceptable answer, though. Even WSB's version of accounts portrays themselves as absurdly naïve, given that they're arguing that extreme content in a language other than...
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    Business & Finance The GameStop Short Stock Sensation

    I would point out that the WSB Reddit actually did acknowledge that it was indeed due to language violations. Their argument was that having an automated profanity filter should have been considered sufficient compliance, that they shouldn't be expected to moderate users who bypassed said...
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