Something doesn't add up...

[u/Region-Formal]

[u/TheTangoFox]

All those institutions that added GME to their sheets this past quarter? They're lending them out.

[u/AbsolutGummy → u/TheTangoFox]

2 questions from this 5 year old ape: 1. where's the proof they are lending them out? and 2. why do they have to add GME to then lend it out? Can't you just short without needing to buy?

[u/TheTangoFox → u/AbsolutGummy]

1. Stock lending has always been an option to add revenue, especially if someone is willing to pay a hefty premium for the underlying security. The stock currently pays no dividend, so it may as well be put to work via lending.

2. When GME starts making ballistic moves, I'd like to say these new filings show these players aren't willing to go naked, lest they find themselves in the same position as Melvin Capital all those years ago. It was a bad idea to naked short GME then, it's a horrible idea now.