That would be virtual bleeding (which could be the case though), but if you bleed real money then somebody else has to receive it. If you hold a stock money doesn't come to you (except as annual profit distribution but that is a different issue). I read the fees for borrowing a stock for shorting are coupled to the market price (not sure). So if you fund lost a few billion real money (so they have to sell other assets to pay that) then somebody else has to get these billions now.
The stocks they are borrowing for their shorts have really high interest now. They are bleeding money just paying interest. And now that goes for a couple of hundred percent of the stock float.
Who specifically get this interest now? Maybe it is not know, but maybe somebody knows here?
Depends on the broker. They publish their fees and the amount of those fees they share with the stock owner. Not all have loan fee share programs mind you.
Correct.
Unsung winners are counterparties to hedgefunds in trouble
The troubled melvins and maples are exiting succesful positions to be liquid and cover for the black hole that is GME.
So that's basically wall street winning again (different house number though..)