> Why were hedge funds allowed to still buy the stock?
They use a prime broker, which is a fancy way to say Goldmans, JPM, Citi, etc's institutional brokers, which also have the same relationship with the DTCC. And their prime brokers did not leave too little cash at the clearinghouse.
That's if you buy the story here. I'm still mulling it over. I used to run hedge funds, and indeed PBed with these big names.
They use a prime broker, which is a fancy way to say Goldmans, JPM, Citi, etc's institutional brokers, which also have the same relationship with the DTCC. And their prime brokers did not leave too little cash at the clearinghouse.
That's if you buy the story here. I'm still mulling it over. I used to run hedge funds, and indeed PBed with these big names.