Just then, a shocking piece of news arrived—Frost Fund had also joined the effort to suppress Electronic Arts' stock price.
This undoubtedly dealt a heavy blow to Electronic Arts' already precarious stock price, which plummeted rapidly, quickly falling to an astonishing low of $12 per share.
The white-haired old man had been closely watching the stock price trend. When he saw this positive trend, the corners of his mouth couldn't help but turn up slightly, revealing a faint smile.
The smile contained both pride in his accurate judgment and pity for the unsuspecting investors.
Meanwhile, in a corner of an online forum—the Leek Bar—a storm is quietly brewing.
Jerry, the moderator of this popular online forum, has just published an article titled "The Shocking Secret of Electronic Arts Stock".
In the article, Jerry provides a detailed account of Electronic Arts' current operational status, offering his unique perspective and in-depth analysis.
He pointed out that although Electronic Arts may appear to be in trouble on the surface, they have actually made a major breakthrough in their new game, Halo 4, which is likely to bring huge profits to the company.
The current stock price plunge is entirely a conspiracy by capital, aimed at accumulating shares at low prices.
This article was like a pebble thrown into a calm lake, instantly creating ripples across the "Leek Bar" (a popular online forum for stock market enthusiasts). Many investors were drawn to the viewpoints in the article, and began frantically forwarding and discussing it.
Some small investors who were initially hesitant about Electronic Arts stock began to re-evaluate the stock after reading this article.
Soon, the comment section below the article was flooded with messages. One person angrily declared, "We must make those Wall Street bastards pay a heavy price!"
Others praised Jerry's analysis, believing he was someone who truly understood this game of capital.
Less than three seconds later, a new comment appeared like lightning: "Brothers, let's all work together! Let's join forces and push the stock price to its highest point. If we can do that, those despicable Wall Street devils will soon be in dire straits due to margin calls."
In the stock market, going long and going short are two common trading strategies.
Going long means that investors expect stock prices to rise and profit by buying stocks; while going short means that investors expect stock prices to fall, and profit by borrowing stocks, selling them, and then buying them back to return them after the price drops.
However, the risks associated with these two approaches are quite different.
The risk of going long is relatively limited; at most, you will lose all of your investment principal, which is 100% risk.
However, the risks of short selling are unlimited, because stock prices can theoretically rise indefinitely. Once the price rises beyond investors' expectations, short sellers may suffer huge losses, or even go bankrupt.
At this very moment, Citron Research and Iceberg Fund, two powerful fund companies, joined forces to aggressively short Electronic Arts stock.
In the trading room, the white-haired old man's assistant rushed in, looking anxious, and said, "Your Excellency, an article supporting Electronic Arts has appeared online, which has attracted the attention of many investors, and the stock price shows signs of stopping its decline and rebounding."
The white-haired old man frowned slightly, his eyes sharpening. After a moment of contemplation, he said coldly, "Increase the pressure. I don't believe these small shareholders can make any waves."
"Yes, Your Excellency, with the Frost Foundation joining in, we'll make sure these retail investors are begging on the streets tomorrow," the assistant flattered.
Immediately afterwards, the white-haired old man dialed Tom's number again, demanding in a firm tone that he continue to increase the intensity of short selling.
Time passed second by second, and just ten minutes later, a shocking scene unfolded—the stock price of Electronic Arts Games was pushed up to an astonishing 150 percent by short selling positions!
It's important to understand that a company's total number of shares is usually fixed; how could it possibly exceed 100%?
After a thorough investigation, people finally uncovered the mystery.
It turns out that Citron Research, in order to short Electronic Arts stock, adopted an extremely aggressive strategy: they borrowed a large number of shares from brokerages and then quickly sold them on the market, thus creating huge short selling pressure.
In order to earn high interest rates, those brokerage firms did not hesitate to lend the Electronic Arts shares held by the merchants to Citron short-selling funds.
This behavior is called "naked short selling," which, simply put, is selling stocks that do not exist on the market.
The transaction is considered successful as long as Citron Research can buy enough shares on the market to return to the brokerage firm before the settlement date.
In the Trump Hotel, Chen Ze sat in a chair, his eyes fixed on the ever-decreasing stock curve on the computer screen, silently cursing those greedy and ruthless guys on Wall Street.
He anxiously raised his wrist, glanced at his watch, and realized that there were only a little over ten minutes left before the market closed. Time was of the essence, and Chen Ze's brows furrowed even more deeply.
He turned to Zhang Guoheng sitting beside him and asked urgently, "Guoheng, how much money have we lost in our account? How much is left in the account?"
Zhang Guoheng's expression was grave. He took a deep breath and replied slowly, "Boss, since the market opened this morning, our accounts have accumulated losses of four billion US dollars. Currently, each person only has a mere three hundred million US dollars left in their account."
After saying that, Zhang Guoheng couldn't help but sigh in his heart: "Sigh, I advised you to sell everything a long time ago, but you just wouldn't listen! Look at you now, not only have you not made any money, but you've also lost so much of your principal. If you had listened to me this morning, you could have easily made over 10 billion RMB by now! You couldn't spend that much money in several lifetimes."
Zhang Guoheng sat in his chair, shook his head slightly, and murmured, "Why won't the boss listen to advice?"
Xiao Fang leaned closer and asked curiously in a low voice, "Team leader, what are you muttering about?"
Zhang Guoheng glared at her. "Why are you so fussy? The market is about to close. Keep a close eye on the stock chart."
Xiao Fangqian pouted and turned her head back, muttering, "Stingy girl, can't even ask a question."
Online, the entire Wall Street community is abuzz with Citron Research's short-selling attack on Electronic Arts, which has become the hottest topic right now.
Two hours later, more and more people gathered on a certain website forum, and those who came in all saw Jerry's latest article about saving Electronic Arts' game stock.
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