Hedge funds are still illegally shorting the AMC stock, but how? Back in 2018 AMC issued $600m of convertible loan notes, then replaced them with another set of $600m loan notes, but never cancelled the initial batch. Banks have been able to lend these 'potential shares' as short positions all this time. Adam Aron the CEO of AMC has just cancelled these loan notes. But how does that effect the AMC stock price?
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AMC recently filed cancelling an S3 filing from 2018, the 2024 convertible loan notes that were never replaced, banks have been lending against these shares as short positions.
These shorts will be recalled and cause the AMC stock price to rise. $600m loan notes translates to somewhere between 12m shares and 120m shares, depending when the short positions were entered into ($50 or $5)
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11 thoughts on “How hedge funds are still illegally shorting the amc stock – amc stock short squeeze update”
  1. Avataaar/Circle Created with python_avatars Jacqueline Jasper says:

    <<There's no doubt in my mind that we are not only going bull, but BTCis going nuclear. A lot of people are wondering if now is a good time to buy because of where the price is at right now. I'd say it's outrightly wrong to just sit back hodl and wait maybe incur some losses along the line, that's a wrong mindset for an investor because as an investor finding ways to always increase and stack up more coins thereby making prof!ts should be the way of lifeThat being said, the market is still all about BTC at the moment and Iโ€™ll advise current investors and newbies to take advantage of Randy Douglas program, a pro trader who runs a training program for investors/newbies who lack understanding on how trading Bitcoin works, to help them recover loss from the crash and also accumulate more bitcoin, with his program i went from having 1.3btc to 9.8btc in just 5 weeks. You can reach him on TE LE GRAM (@randy_signals )and What's– application (+ 1 5 2 0 3 3 7 2 6 3 1, letโ€™s make the best of whatever we can.

  2. Avataaar/Circle Created with python_avatars Lion22 says:

    Great video mate, no hype and really useful info ))

  3. Avataaar/Circle Created with python_avatars Blunt says:

    Can someone from the UK recommend a trading platform. I've currently got 140 amc shares in my trading 212 ISA account. But now I'm a lil worried incase they pull the same stunt they did with the GME squeeze. So I want to start buying more but on a different platform, preferably one that didn't halt trading. Any suggestions (and friend referral link) would be welcome. Xx

  4. Avataaar/Circle Created with python_avatars Shay Mickay says:

    what happens if S-3 doesn't pass for whatever reason.. or is it just a formality? are we screwed if it gets rejected?

  5. Avataaar/Circle Created with python_avatars Andriy ๐Ÿ‡บ๐Ÿ‡ฆ says:

    They already pushing it down, itโ€™s VERY GOOD sign ๐Ÿฟ๐Ÿš€๐ŸŒ

  6. Avataaar/Circle Created with python_avatars Who Me? says:

    Theyโ€™re throwing the kitchen at us, billions at stake. But theyโ€™re running out of time, Sec watching them closely!

  7. Avataaar/Circle Created with python_avatars Dyn audio says:

    Why on earth are you silent and waiting for this situation? They're in trouble? I do not agree with that statement. Look at what they're doing. We don't know what's behind them, but we're proudly continuing to commit illegal acts. The bill passed, but what has changed for us? They only take a little action, but there is no justice. Money is only important and all terminations are on the same side, not ours. All illegality is being done without hesitation and corruption, as it should be. I want to see a rocket in front of me, but silence does not ignite the rocket. Will there be food in your mouth if he stays still? That's not gonna happen. It is a series of great disappointments that there is no justice to the corrupt reality of money. Will Tussel still be silent and wait? Do you think many great people have sacrificed their lives to protect this corrupt country? It's probably their saddest thing in the grave. Shame on their children and on their noble heroes who died defending the country.

  8. Avataaar/Circle Created with python_avatars Tom Genis says:

    Don't give up on AMC that is exactly what they want you to do there using the same strategy they did with gamestop to have people lose interest because they are in a huge jam right now and only way they can get out is to have people sell

  9. Avataaar/Circle Created with python_avatars Miguel Gonzalez says:

    *NOT Financial ADVICE **but a good read
    For all of the new baby apes. I know a lot of you have questions, and I thought it would be helpful to provide you with some overall context to understand the significance of the movement you just joined.
    Hereโ€™s the cliff note version. Covid hit last March and a couple of big hedge funds concocted a plan to drive AMC into bankruptcy by โ€œshortingโ€ it and make a ton of money in the process.

    You โ€œshortโ€ a company when you think the value of the stock is going to go down. When the country locked down and AMC closed their doors and their revenue literally went to $0 overnight, it was a no brainer play for the hedge funds.
    So they started borrowing millions and millions of shares from brokers and sold them โ€œshortโ€ at the market price at the time, and they pocketed the cash from the sale. The idea is that the stock price will drop, you can buy them back later at a lower price, and then return the borrowed shares to the broker and keep the difference. If the company goes bankrupt, the stock goes to $0 and they donโ€™t have to buy anything back at all and keep everything. This is what they were banking on. Theyโ€™ve done this to company after company over the years, and they saw this as a sure thing as any.

    Well a bunch of people on Reddit (affectionately known as โ€œApesโ€) noticed they were trying to drive AMC, GameStop and many other retail and mortar stores into bankruptcy, and banded together to buy up all the available shares, driving up the share price. This resulted in the mini squeeze in January. But Apes didnt sell after that. And the hedge funds didnโ€™t cover their short positions either (I.e. buy back the millions of shares they had borrowed and sold short).

    The Apes kept buying and buying, and holding and holding, and once the real shares were all bought up, the hedge funds doubled, tripled and quadrupled down on their short position and started making synthetic shares (IOUs) and selling those shares into the market trying to drive the price down. When the price dropped, instead of selling like the hedge funds wanted them to, Apes said โ€œthank you very much for the discountโ€ and kept buying more and holding. Nobody has sold for the past 5 months since the movement really got started in January, and more and more people are jumping in and adding more everyday.

    Now because of all of the synthetic IOU shares the hedge funds have created to keep shorting AMC, us Apes likely own more way more shares than are actually supposed to exist (as much as 6x-8x by some estimates). But real or synthetic, each share the hedge funds sold short is a liability on their books that must be bought back in order to close out their position.

    They literally have hundreds of millions of shares, possibly billions, to buy back, and we own them all. They have to buy them back eventually, and every day that the borrowed short shares are still on loan, the hedge funds are paying interest to the brokers they borrowed them from. Meanwhile it costs us nothing to hold.

    Things started to come to a head a couple weeks ago because the interest rate on the borrowed shares was reported to be as high as 250% (1-2% is normal for your average stock), so the hedge funds are collectively paying hundreds of millions of dollars every day just to hold their position, and a lot of them are starting to miss the payments and margin calls could be coming very soon.

    Thatโ€™s when the fun starts. At that point, the broker forces them to buy back all of the hundreds of millions of shares they have borrowed and sold short, because the broker doesnโ€™t want the hedge fundsโ€™ recklessness to fall onto them. And remember, the Apes own all the shares and arenโ€™t selling. The hedge funds can only buy a share for what an Ape is willing to sell it for, and us Apes really love our shares.

    Once the margin calls start, the computers just start buying back all of the shares at the best available price no matter what that price may be. They all have to be bought back. Everything must be settled. And if the cheapest price an ape is willing to sell for is 1,000, or 10,000 or 100,000, well then thatโ€™s what the hedge funds will be forced to buy the borrowed shares back for in order to close out their position.

    Apes are going to hold and hold and hold driving up the price further and further to make the hedge funds bleed as much as possible until they are inevitably forced to buy back their millions of shares. They will need to buy our shares, and we set the price. And remember, it costs us nothing to hold. This movement has been building for the past 5 months, but you just heard about it yesterday. One thing Apes donโ€™t do is set dates for the squeeze. Nobody knows when it will happen, all we know for sure is that the math says itโ€™s inevitable as long as we hold.

    I only see three possibilities as to how this all plays out:

    1. AMC goes bankrupt and the hedgies win (please note this is not going to happen. AMC has enough liquidity to last them through 2022 and the most passionate shareholder base in the universe. Not to mention a pretty badass CEO who has completely embraced the new shareholder base)

    2. Hedge funds are somehow able to meet their daily margin payments to avoid being margin called, and they strategically close out their short positions over time, causing a sustained Tesla type squeeze over a period of a year or more (remember, apes arenโ€™t selling until weโ€™re at the moon)

    3. Hedge funds will be margin called and forced to buy everything all at once and weโ€™ll have the most violent squeeze in the history of short squeezes. The price is infinite as long as apes hold.I wouldnโ€™t bet on #1, #2 will require patience, and #3 will be absolute insanity (and in my personal non-financial advisor opinion is the most likely outcome). Either way, weโ€™re winning the battle. This beautiful movement is growing by the day, and we can hold longer than they can.

    Never before has anything like this happened where millions of regular people have been able to band together to take on the billionaires who have been screwing them over time and time again, and be able to actually hit them where it really hurts

  10. Avataaar/Circle Created with python_avatars Peter Morrison says:

    I have about 10% of my portfolio in uranium AMC coin any advice on any other stock that I can grow my $300k capital to a million dollars?

  11. Avataaar/Circle Created with python_avatars Thomas James - Investing says:

    What do you think about the hedge funds STILL Illegally shorting the AMC stock? are you glad Adam Aron is putting an end to it?

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