Yeah I think it’s dumb and sensational. Some (not all, but some) people really genuinely think that GME/AMC will hit $1,000,000+ per share and also that hedge funds would actually pay that out instead of just declaring bankruptcy or something and reorganizing as a new legal entity. I’m studying to work in corporate bankruptcies, so I have a bit of knowledge on the topic.

If a hedge fund liquidated, it’s possible all the money could go back to investors. I’m not sure how liens would work on short sales; however, if what they say on that sub is correct, and these hedge funds are illegally naked shorting, then they could declare bankruptcy on not worry about paying back shares that don’t exist. In that situation they’d pay a hefty fine and then liquidate to their investors.