Smashing Short Selling
That evening, on the bulletin board of the stock site, another heartbreaking situation was taking place for the family of the owner of the Daeyang Group.
– Is the short sale of Daeyang Heavy Industries real?
– I’m also looking at it, and now there are less than 30 million shares in short selling. Previously, there were well over 30 million shares.
– Isn’t a short sale worthwhile? It is true that the stock price has overheated.
– Short selling is not recent. It had already surpassed 30 million shares before the loss was announced. And it was the same when it announced the loss and hit the lower limit. After the stock price went up, it actually decreased.
– Bitten. b*tch!
– It’s very X.
The hostility toward short selling by ordinary investors in Korea is great.
The biggest reason is that the short selling system itself is difficult for the general public to access, and that institutions and foreigners can easily do it.
– So, the stock waiting to buy now is 20 million shares?
– 27.5 million.
– If you leave it as it is, it will feel like hell. kkkkkk!
– Short squeeze is coming!
– What about short squeeze?
– When the price of a short-sold stock rises, you are forced to buy it, and in the meantime, the stock price rises again.
– Will you hold out until the stock price falls?
– There is a limit to what you can endure. If the stock price rises too much, you have to pay an additional margin, and if you don’t, you will be forced into liquidation.
– If you give me 30 million, the damage would be huge.
– I don’t know right now, but if the stock price doubles, the loss would be 3 trillion won.
– Ugh! Is the 3 trillion won in the short sale a true story?
– When a short squeeze comes, the stock price automatically rises. 2x, 3x, or 4x is possible.
– If you go 4 times, 5 trillion won. Daeyang Heavy Industries’ losses.
– Are you losing 5 trillion won in short selling? I’m so excited!
– See the new Xs who sell the seed X short! i never sell
– I too hold until the short squeeze comes!
– We can finally seize the power of short selling!
– 4 times more than 200,000 won?
– 200,000? Honey! If it’s under 200,000, it won’t sell even if it’s dead.
As the number of short selling became known, the atmosphere was going badly.
Perhaps as a result, the buying trend increased, and the selling volume, which was otherwise rare, also decreased significantly.
– By the way, isn’t it borrowing stocks when selling short? Who borrows like that? If you give 30 million, it’s 30%.
– In the past, you could sell first without stock, but now you can’t. So, you must borrow it.
– So who lent it to you?
– You’re.
– yes? What are you talking about?
– When you buy Daeyang Heavy Industries at a securities company, the securities company lends the shares to short sellers.
– Are you crazy? You said the stock price dropped because I borrowed it to sell my stock?
– This is usually the case. It asks when installing HTS, but I don’t know because I usually just skip it. Therefore, if you do not want to borrow, you must apply for cancellation of the rental.
– Mr. X Are you crazy? Why are you borrowing my stock as you please?
– If you don’t like it, there is a way to move it to another securities.
– I’ve canceled it now. Jol X I feel bad. I have never applied for stock rental, but it is checked.
– I don’t sell it even if I feel bad. X new Xs.
A few years later, it is something that is known to some extent, but there are still a lot of people who do not know it.
– Take this opportunity to destroy the short selling force!
– Smashing short selling!
– Let’s go 200,000!
– If we don’t lend them, they’ll all die!
– If you don’t sell by 200,000, you lose 5 trillion won!
– Let’s go group 10!
At some point, ordinary investors have come to stand as fighters against the obvious enemy of the short-selling force.
It was also an opportunity to earn as much profit as the losses suffered by the short sellers.
– But you have to have stock to buy it. very dry
– Should I have gone in yesterday?
– Do you think it’s not too late by now?
– I go in as soon as the store opens in the morning.
These controversies were not happening only on one bulletin board.
Suspiciously, a number of stock sites, stock-related communities, and even general community bulletin boards have similar discussions going on at the same time.
* * *
On the third day after SS Partners started buying Daeyang Heavy Industries’ shares, the two brothers were now living anxiously in the Daeyang Group headquarters building in Teheran-ro, not their father’s home.
“A margin call? Do something! Now where’s the money to put more margin there! Shit!”
Geun-il Ryu is busy giving orders to the US side over the phone all day.
“Are you three?”
“Three-Hwan and the only one both came in. If you don’t put it in by 2pm, I’ll be forced to liquidate, that’s crazy.”
“If it was all sorted out yesterday, wouldn’t this look like this?”
The eldest son beats Ryu Geun-il.
“Don’t talk nonsense. Didn’t hyung think the same as me yesterday?”
It is not Ryu Geun-il who will sit still after hearing such a sound.
And on one side, the chief of staff was looking at the two brothers with an uncomfortable face.
“Oh my gosh, is it because the American head isn’t cool? The processes are messed up.”
“That’s it. Han Jae-deok did a really good job with the yangban.”
The brothers did not think that they were the ones who were confusing the working group, but blamed only those in charge of the US side.
“Oh chief. Han Jae-deok, where did you say that gentleman is now?”
“I am enjoying my retirement in Georgia.”
“okay? Is Georgia too far from New York?”
“It’s not that far. However, it has been a long time since I left my current position, so I do not know how much help it will be in an urgent situation like now.”
The owner’s family, who suffered absurd losses from the Freescale incident a year ago, took responsibility for the incident and fired Richard Hahn, who was the head of DL Capital.
Han Jae-duk, who has been managing the slush fund in the United States for over 20 years, was pushed out in an instant.
“It’s only been a year now. Well, it’s like suddenly changing heads in this situation. okay.”
The eldest son also agreed with the chief of staff’s words.
“What? Even at SI? In addition? All the rest are margin calls? OMG! Shiba!”
bang!
Ryu Geun-il, who was answering the phone, couldn’t contain his anger and kicked the desk.
This time, I threw a short sale through all five securities companies, but when the stock price rose and exceeded the margin, all five companies contacted me asking for an additional margin.
If you do not deposit the margin on time, you will be forced to liquidate by purchasing the short selling quantity at the market price.
“How much do you think the damage will be?”
“I don’t know. I can’t get it right now.”
Not everything ends with liquidation. If the margin is not enough, it remains as a debt.
Judging from the current state of affairs, it was obvious that the stock price would rise again once it went into liquidation.
“Secretary Yoon. How are you? Are you doing it properly?”
Ryu Geun-il shouted at his secretary.
Knowing that investors’ reaction overnight had turned completely hostile to short selling, they also took action.
“yes. Right now, the PR team and the subcontractors are working hard.”
“Is hard work important? Doesn’t it matter if you’re doing it right?”
“Yes. I will do my best.”
A secretary who knows the nature of the boss well knows how to respond in times like these.
“I’m doing my best, but this is what it is? How come there is no response?”
“stop. There is no such thing as secretary Yoon.”
The eldest son tries to dry the luggage.
“How about your brother?”
“What is different about us? What are you going to say now?”
The eldest son shook his head.
It’s a $1 trillion job. Therefore, he is trying to turn the situation around using all the channels, but as he himself said, it hardly works.
All day that day, the two brothers had to deal with the short sale they ordered through a brokerage other than Daeyang Securities.
Fortunately, the amount of short sales ordered through Daeyang Securities is much higher.
Daeyang Securities can delay the situation until the end of the crisis without a margin call.
The current stock price is undoubtedly an ideal price, so when the situation calms down, it will fall again, and when that happens, you will be able to make up for the loss.
Like many investors, the brothers looked only at a positive future and were ignoring the deep pit they faced right now.
Everyone knows that when things go wrong, stop loss is the only answer, but few people are willing to admit failure in the face of immediate loss.
Investing and managing require different kinds of talent. This is the reason why there are not many entrepreneurs who lose all their hard work through financial investment after achieving great success in their business.
Moreover, now there is no president who can awaken the brother’s wrong judgment, and there is no third person who looked at the situation calmly.
The chairman’s chief of staff is not a person who for nothing makes a fuss about the two brothers’ decisions.
In this way, the Daeyang Group’s Saju family was falling into a quagmire that does not know the end of each step.
* * *
“Today’s short sale volume has decreased considerably.”
It was 3:30 a.m. New York time, and a long time had passed since the Korean stock market ended.
After the chapter was over, Joanna gathered up the materials Eugene needed to bring.
“I’m tired because I work overtime every day.”
“It’s nothing. But am I younger than the boss?”
Joanna smiled and handed over the materials.
“Hmm. Short selling decreased by 4.3 million shares.”
“I think that is why there have been so many surges before. Geary Short Squeeze is here.”
“The remaining short sale volume is 23.4 million shares. There is still a long way to go.”
“It would be better to liquidate everything now.”
“Is that as easy as your heart? The sales volume has already dried up. There is no upper limit.”
“It is. It was different from the US. Anyway, I’m pretty upset.”
The U.S. stock market does not have a ceiling, so it can rise more than 100% in a day.
If Daeyang Heavy had been short selling in the US market, we would have known by now what a real disaster.
It is often said that short selling yields limited profits and infinite losses. This is especially true in cases where there is no upper limit, such as in the United States.
However, if there is an upper and lower limit, it is not easy to see a loss of hundreds of percent.
For various reasons, it is close to the truth that short selling is advantageous in Korea.
“It’s nothing yet.”
Eugene let out a sinister laugh. Knowing the end of this situation, I can’t help but be happy.
“You are very happy. It’s rare to see a boss smile so genuinely.”
“Did I?”
“yes. I don’t think you’re as happy as you are now after you’ve made $400 billion from Brexit.”
“Maybe it was because I didn’t feel it at the time?”
“I do not know?”
Joanna doesn’t seem to believe Eugene’s words.
Thinking about it, I don’t think she was wrong.
In earning money, like the law of diminishing marginal utility felt in consumption, the amount of pleasure gradually diminishes.
Do you feel like you’re taking for granted the money you can earn anyway?
However, revenge on those who have plunged themselves and their families into despair in their past lives is always new each time it is played.
“Oh yeah! Are not you hungry? Everyone is hungry, so what can I get you?”
There are still quite a few employees in the office.
We are investing all over the world, and because each market is different, there is always someone in place.
“You don’t have to worry about it, as you will find and eat it on your own. With just one phone call, the Plaza Hotel brings it to you.”
All offices around the world aim for the world’s best welfare.
Among them, this Manhattan office is even more so. It offers salaries and bonuses that are second to none on Wall Street, as well as various bonuses and conveniences.
It is quite natural to generously spread the knowledge of the future that Eugene knows to those who directly generate profits.
You order what you need first, and it is processed immediately by submitting a payment request.
If you are tired from work, instead of going home, you can stay at the Plaza Hotel, which is the building next door. All are paid for by the company.
But, like many high-tech companies in the United States, it also coincides with the fact that they are rolling their employees as much as they do. If you are tired enough that you do not want to go home, it means that you are free to use the luxury hotel.
“Then you don’t want Joanna to go in yet?”
“I have to go in. go out together When I hear the boss’s words, I go out a little. I want to eat anything.”
“Is that so?”
Eugene went out to the street with Joanna. As I was walking along Fifth Avenue, where there were few people because it was dawn, the bodyguards standing in front and back were preparing for any unexpected situation.
“Are you going to do that?”
Joanna pointed to the food truck that had not yet entered. Since it is a very popular halal food, Eugene wasn’t too bad either.
The two each took a bowl of chicken and crumbly rice, and headed out into the streets again.
Then he finds a suitable place, sits down on the street, and starts eating the food he just bought.
“It’s not bad that this street is so quiet.”
It is the busiest street in New York, but it is very quiet after 4 am.
“It is. This time is not bad.”
Joanna smiled and ate the almost crumbled meat and rice with a plastic fork.
Eugene laughed for a moment at the fact that the figure of Joanna in a bikini and the figure of now sitting on the street eating halal food deliciously did not match the cold look of her that she had only seen through the media in her past life.
It’s not bad to imagine what this woman would be like if she hadn’t worked with him.
“What are you thinking and laughing so sly?”
“yes? bikini.”
Eugene answered honestly without knowing it.
“ah! bikini. Did you like it?”
“uh. greatly.”
“Then let’s go play again. when.”
“Is that so?”
Eugene began to ponder in his head when the time would pass.