>>60854669
Wait a minute I think I remember something another buddy of mine used to say. It's all coming back to me now.
Prime brokers do not have to publicly disclose their short positions. Instead they report aggregate positions to FINRA twice a month. Therefore hedge funds who wish to short a stock without publicly disclosing their short position can simply enter in to a swap contract with a prime broker, have the prime broker short on their behalf, and pay a modest fee for their services. This is how Bill Hwang leveraged Archegos to the point that it destroyed Credit Suisse. If that hedge fund wanted to keep that short position open with the prime broker in perpetuity for some reason (I can't imagine what that reason would be), they would need to periodically renew that swap agreement as it is not open ended. The price of the underlying equity at the time of that renewal would determine the fee that the hedge fund needed to pay the prime broker for their services, so it would be in the best interest of the hedge fund if the price could somehow be forced low at strategically important points in order to minimize the fees they pay to prime brokers.
Boy that buddy of mine was smart. I haven't heard from him in awhile. Say frens, do you think this might have something to do with why we are not allowed to discuss the prime brokers JP Morgan and Goldman Sachs and the verifiable crimes they have committed against the American taxpayer in our comfy GME thread? No that can't be it. I bet the real answer is that most of us just want to protect the sanctity of the threads in this Czechoslovakian checkers club and repeat banal trivia facts about store closures.
