Hedge fund goes long on Amazon and shorts Amazon competitors. Profits through increase in long position valuation and short profits. Hedge fund gets competitors delisted, where they only trade via OTC. Hedge fund can close position and take profits or not close, but still retain cash (from shorting) and a liability with an almost nil valuation on the balance sheet. Unrealised gains may also be used to further leverage. Broker-dealers can also “accidentally” mislabel naked shorts as long.
Short positions are hidden in Total Return swaps. We can observe the price spikes following the January squeeze as evidence of this. Why would the price spike for delisted companies unless they were bundled into the same basket as GameStop?
Amazon competitors: Macy’s, Sears, Toys r US, GME, Newegg, Wish, BBBY.
I was curious what other stocks are highly correlated with GME (Positively or Negatively), so I compared it to about 13000 other stocks’ daily ending price from March 3 2021 to Sept 1 2021. Answer: Quite a few!
This has some interesting points to note but not convinced by the whole Bezos conspiracy angle:
Further Reading (Important):