Liu Ruying shook her head: "I'm not sure."

"Short selling means buying stocks when they fall," said Gu Yuqing. "Normally, you buy stocks at a low price and sell them at a high price to make a profit, but short selling is the other way around.

"For example, if I want to short Taimei, when its price is 10 yuan per share, I can borrow 100,000 shares and sell them directly, making 1 million yuan.

"When the price of Taimei fell to 1 yuan per share, I bought another 100,000 shares and repaid the 100,000 shares I borrowed before, spending only 100,000 yuan.

"One million minus 100,000 equals 900,000. This operation netted me a profit of 900,000.

"In short, short selling is bearish; the more a stock falls, the more money you make. The opposite is called long selling; the more a stock rises, the more money you make."

After Gu Yuqing finished speaking, Liu Ruying nodded and said, "I understand. So, Zuo Wenzong can make money by shorting his own stocks with foreign hot money."

"That's right." Gu Yuqing smiled and continued, "However, there are very serious problems in the situation of Taimei Group now."

"What's the problem?" Liu Ruying held her breath and listened carefully.

"The Lu family holds 20% of Taimei Group's shares, and Chen Ya holds 75.1%. Together, that's 95.1%. Don't you see any problem here?"

Liu Ruying nodded and said, "100 minus 95.1 equals 4.9. Only 4.9% of Taimei Group's shares are still circulating in the market."

"Did you notice?" Gu Yuqing laughed. "There was another number mentioned earlier: international speculators shorted 15.3% of Taimei Group's shares... 15.3%! That's more than three times the number you just mentioned!"

"Ah!" Liu Ruying exclaimed softly, "So that means if Chen Ya and the Lu family hold on to those borrowed stocks, they won't be able to buy them back?"

"Right." Gu Yuqing nodded. "As I said earlier, short selling means borrowing first and then buying. International hot money borrowed 15.3% of the shares, and now, there are only 4.9% of the shares left on the market. Even if they plundered all the remaining shares, they still couldn't repay the shares they borrowed!"

Liu Ruying gently covered her mouth.

"Then... in that case, what will happen?"

Gu Yuqing smiled and said, "Think about it, what will happen if your demand is three times the market supply?"

Liu Ruying's eyes widened, her brain racing. "They'll scramble to grab the remaining shares, driving up the current stock price infinitely..."

"That's right," Gu Yuqing said, "Taimei Group's stock price will be driven up to a terrifying level because of these investors' reckless buying."

After saying that, she raised the glass on the table. The ice in the glass made a pleasant sound, like some kind of bell.

Liu Ruying murmured, "No wonder Pei Hu is still buying up the stocks held by those people tonight. He... no, Chen Ya had planned this a long time ago."

Qin Yunchu was silent for a long time, then squeezed out a word from his mouth: "How despicable."

So despicable.

The faces of those people who were scrambling to get rid of the "hot potato" in their hands still appeared before their eyes.

What kind of expressions will these people have when Taimei Group’s stock price rises to a sky-high price tomorrow?

He must be regretting it so much.

Liu Ruying raised her head, her eyes sparkling. "But even if we snap up all the remaining stocks on the market, it still wouldn't be enough to pay back the stocks those people 'borrowed' when they shorted them. So what happens next?"

Lu Qingxuan also raised her head and looked at Gu Yuqing. She didn't know much about this.

Gu Yuqing nodded and said, "This involves the basic knowledge of stock trading. Let Mr. Qin explain it to you."

Qin Yunchu lay on the comfortable sofa, with one of her long legs sticking out from the hem of her bathrobe, raised high. From her calf to her arch, a perfect line was breathtaking.

“If you can’t pay back the borrowed stocks on the settlement date, your position will be liquidated.”

Qin Yunchu explained, his eyes still filled with admiration for this astonishing situation:

"I won't go into the complexities, but you can understand it this way: when speculators trade, they open a position with a sufficient amount of margin. If they can't repay the borrowed shares, the market maker will withdraw the margin from their position to ensure fair trading."

Lu Qingxuan asked, "Does that mean all their money is wasted?"

"Yes, they all went down in the water, splashing and plunging. Not a single one was left. They all sank."

Liu Ruying said in shock, "It's like gambling."

"This thing is just legalized gambling. Everyone thinks they're smarter than everyone else, scheming against each other to see who can calculate more!" Gu Yuqing nonchalantly crossed her legs, her legs gracing Qin Yunchu's cosmic-long legs. "Do you think those hedge funds don't know what they're doing?"

Having said that, Gu Yuqing showed a cruel smile and said:

"For these investors, a margin call is even more terrifying than you can imagine. It can be said that after tonight, the lifeline of the Fibonacci family, the third largest financial group in the United States, will be in the hands of Chen Ya and the Lu family!"

Lu Qingxuan's pupils trembled violently.

"Chen Ya holds 75.1% of the shares, and the Lu family holds 20%. The remaining gap between the hot money must be paid from Chen Ya and the Lu family. In other words, no matter how much they bid, the hot money will be helpless because they can only buy from these two families! This is called a 'short squeeze'!"

After saying that, Gu Yuqing licked her lips and said, "However, I don't have any ambition to become the main force of the short squeeze group. I'll just have a share of the spoils on the side. Let Chen Ya be the main force."

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