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The original was posted on /r/Superstonk by /u/Snorri_S on 2024-01-29 14:02:20.

OK so this weekend Evergrande died once more. Again. For real this time. Finaly. Really, really dead. Liquidated. This time honestly gone. Pinky promise. Well at least until it collapses the next time that is, probably around three months from now.

The sub has a lot of Evergrande-going-down hype posts in Hot right now and some people seem to get excited about this, but I’m left wondering – why? There were a lot of crazy-ish theories around Evergrande 1-2 years ago, but even then, this was for ‘big picture’ context at best. As in, Evergrande blowing up would trigger the Chinese stock market and/or economy to implode, causing a massive black hole for international financial institutions, particularly in the US. However, the Chinese have since managed to spin out Evergrande’s demise (as well as the slow death of other Chinese housing giants) in an attempt – so far apparently successful - to contain the damage and go for a controlled implosion rather than for a collapse of the entire house of cards that is the Chinese market.

But even if Evergrande would have gone down with blaring flags and trumpets a year ago, there has been little to no indication that this would have anything to do with GME.

When Melvin Capital died, the link was pretty obvious.

The FTX scandal had several links wrt tokenized securities and even previous GME - FTX collaboration on gift cards.

When Archegos and later Credit Suisse blew up, there was at least a probably argument linking GME shorts taken by Hwang to toxic bags now being held by UBS, inherited from CS.

But Evergrande? Beyond community engagement with that slightly dodgy Metzler guy, what has been the relevance of this story to GME at any point? Is there any tangible evidence or even a credible narrative linking Evergrande to potential problems for GME shorts? Even if there was a connection at some point, as Evergrande has been so huge that many US institutions will be affected by it one way or another, would the expectation after all these months of ‘controlled winding down’ of Evergrande be that international institutions would have had ample time to get off the hook for Evergrande liabilities and pass that bag on to the Chinese (who decided that it was preferable to prop up Evergrande in the meantime)?

I may have missed something, but imo the whole Evergrande story has been irrelevant from the start at best, or an attempt at capturing attention / forum sliding at worst. I’d much prefer to keep talking about GME around here, rather than fabricating hopes that somehow the collapse of this big Chinese firm would have a tangible impact on GME shorts’ margin requirements.