AMC Entertainment Holdings Inc (AMC)

[Beek]

Correct me if wrong, but if a HF goes bankrupt my understanding is ALL of it's short positions in ALL of it's stocks have to be reconciled and not just one...correct? So as an example, they'd have to purchase short shares to close the positions to the extent that it dissolves the HF entity (and then insurance/safety nets/asset buyers kick in).

Or can the short positions move as a whole to a new bankruptcy wholesale purchaser for pennies on the dollar? A purchaser that has the liquidity to be able to hold the short positions that is...not that any would want to at pre-squeeze short price...

Reason I ask is can we expect that ALL other stocks that are being overshorted by a particular HF (ie. AMC, GME, SWRM, BB, etc) be expected to "pop up" all at the same time if short shares are purchased back to reconcile the books? Will positions close out in a staggered timeframe instead? Or will it only be select ones and rest are shifted to new holders?