[melonpapes]

Originally Posted by XelNya

I don't know shit about stock trading, but I do wanna get a grip of what the fuck happened, is there a good "what happened for dumb asses" somewhere?

A short explanation would be *awesome.*

Lets say the price of bananas is 10 dollars, and we have a bunch of apes and snakes.
The snakes are betting on the price of the bananas to go down, so they borrow a bunch of the bananas from the apes on Monday, sell them right away for 10 dollars each, knowing/hoping that the price of bananas will be lower than 10 dollars on Friday when they have to pay them all back to the apes (shorting), hoping to make a profit on the difference.

The next week, the apes, recognizing this, decided to buy up all the bananas themselves, making the price go up. This forces the snakes who borrowed on monday to buy back their bananas at a loss, making a profit for the apes.

The apes are reddit and the snakes are the hedge fund managers