People tweeting "do not sell" about stocks that have gone up ridiculously because of a flukey situation - heavily shorted, online-coordinated short squeeze - are showing investment foolishness. Squeezes release quickly. If you don't sell, you've made no money. Sell or lose it all
...I'm getting a lot of "this is about hurting the hedge funds." Nope. This hurts ONE hedge fund that took a stupid position. The others? Making $. They have programs that jump in on velocity movements, buying and selling automatically on the way up, shorting on the way down.
...and the one that took the stupid position has already closed out his position at a huge loss. The squeeze worked. But eventually, the short sellers give up, cover their shorts, and there is nothing left to squeeze.
Melvin Capital is the villain here. It engaged in "predatory short selling" - take a irrational short position on a struggling business. Wall Street hates them too. Most short sellers find *overvalued* stocks. This type of squeeze only works with predatory, which is the minority.
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