As far as I can see you have Citadel on the short side hemorrhaging cash. On the long side you have mutual funds like Blackrock, but they can’t close their position, and they’re making money lending their shares. I don’t see a Citadel-sized institutional interest and influence on the long side. Only retail investors would go all in on a stock trading at 20x earnings or whatever it is.
We have congressional corruption on the record for 6 figure payments. Billions at stake at Citadel can get a percentage changed on a risk management formula used for liquidity requirements at DTC, especially when they can easily justify it. Like I said, plausible deniability. If you disagree maybe you haven’t personally witnessed the levels of institutional corruption I have.
How I am interpreting this is that reddit's bet was too right -- these hedge funds were so exposed, and the momentum was building so fast against them, that it was about to create a liquidity problem that could threaten the stability of the entire market.
