GAMESTOP CORPORATION stock forum

They are shorting some number of GME shares to hedge the delta (sensitivity of the convertible’s value to stock price). This reduces exposure to equity volatility and captures pure mispricing between bond and stock markets. The bonds will have a put option, guaranteeing buyers will at least break even. Until the put date, they'll play the arb game over and over when GME volatility is high.
Pretty simple, right?