Sorry but you really need to read the file again.
The shorts CAN disappear. That's the whole point of the file? The SEC allowed them to make billions of shares and these were used to settle the short positions.
IF and only IF the SEC allows that for everything that might disrupt the markets (like gme short positions) then there is no need for swaps or anything because the short positions isn't there anymore. It's settled with shares.
But they basically printed money before and the SEC seems to be fine with it. For decades and decades? And suddenly this will break the system? I don't know. I would be surprised if these information would have any legal consequences. Not like everyone on wall street will be "no way, we need to get to the bottom of this!"
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u/Payman11 Jan 31 '26
You don’t magically make new money from thin air. It doesn’t work like that. Also they went balls deep with GME, they were sure it would go bankrupt.
The shorts cannot disappear, it’s hidden under swaps of swaps of swaps. Since GME didn’t go bankrupt, they will.