So currently some hedge Fonds are bleeding money, true? So who is the counter party who currently gets this money (can't be the community since they hold)
Whoever has been selling into the funds which needed to cover shorts has been doing very well. As have those who were lending out the shares for the shorting.
Probably some of the early WSB pumpers have quietly sold while yelling at the community to hold, too.
However, we should always be careful with unrealized gains and losses. Those aren't confirmed until people exit their positions.
That would be virtual bleeding (which could be the case though), but if you bleed real money then somebody else has to receive it. If you hold a stock money doesn't come to you (except as annual profit distribution but that is a different issue). I read the fees for borrowing a stock for shorting are coupled to the market price (not sure). So if you fund lost a few billion real money (so they have to sell other assets to pay that) then somebody else has to get these billions now.
The stocks they are borrowing for their shorts have really high interest now. They are bleeding money just paying interest. And now that goes for a couple of hundred percent of the stock float.
Depends on the broker. They publish their fees and the amount of those fees they share with the stock owner. Not all have loan fee share programs mind you.
