Ch. 722The decision to close out and exit
As Iceberg Research faced a forced closeout of its GameStop short position, Lin Shicheng and Era Vanguard sold another million shares and closed most of their options. With Iceberg out and Citadel still covering, Zhao Chen ordered them to exit completely if GME rose the next day.
- Lin Shicheng learned that GME had reached $328 premarket, Iceberg had not reduced its short, and fewer than a million shares remained available to borrow.
- Zhao Chen narrowed the third stock-sale target to $350–$400, directed the first order at $380 if GME opened above $350, and ordered the $40 and $50 options strikes closed.
- Lin Shicheng began selling Era Vanguard’s third batch after GME reached $347, while Iceberg’s prime broker bought shares to cover its short position.
- Iceberg finished covering about five million shares at roughly $350, taking a loss of over $1.5 billion as GME’s short interest fell to 15%.
- Lin Shicheng completed the sale of one million shares at an average of $358 and closed all $40 and $50 options strikes, bringing total options closeouts to about two-thirds.
- Lin Shicheng told Zhao Chen that Citadel was still covering its remaining short position, and Zhao Chen said to close everything and exit if GME rose the next day.