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I was looking at one of the securities that has been short squeezed and I noticed that none of the major funds (like fidelity) have sold any shares during the price increase (its up 300%). Why would they not sell stock during a squeeze when the price is high?

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    They probably can't sell them because they have been lending them to a short seller.
    – Manziel
    Jan 31, 2021 at 12:11
  • @Manziel - Lending shares to shorters does not prevent one from selling your shares. Jan 31, 2021 at 14:09
  • It's a good question. You would think that any fund manager who owned shares below $20 before the short squeeze would have the good sense to sell those shares after they appreciated so much. OF, nabbing $500 is a stretch but $100?, $200?, $300? adds a lot of bottom line performance for the year. Jan 31, 2021 at 14:16
  • According to news reports, at least one institution (MUST Asset Management) has done just that, as have several people in GameStop management: marketwatch.com/story/… The real question is why institutions would be holding shares of a failing business like GameStop in the first place.
    – jamesqf
    Jan 31, 2021 at 17:38
  • Black Rock holds GME shares through their S&P Small Cap ETF. Seems to me they just bought the shares to track the updated index. Jan 31, 2021 at 20:27

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