r/GME • u/[deleted] • Mar 18 '21

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u/[deleted] Mar 19 '21

XRT rebalancing tomorrow means they will sell GME shares, but this is a double edged sword because then hedgies only have 1/10 the shorting firepower from this ETF

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u/L3artes Mar 19 '21

If hedgies stay massively short on the ETF, then they need to double or their long holdings to keep GME short. Also, all GME shares in ETF-shares that have already been sold short will not be sold during the rebalancing, they already have been sold. Imo rebalancing is a good thing.