| Comment | The key part is the short sellers on the other side - hedge funds that have taken out massive negative positions on GME - have to buy back the stock at whatever the price is. wsb discovered that those negative positions were bigger than all the available stock in GME (which was meant to be illegal after 2008 - you're not supposed to short stock you don't actually own), so by buying them and holding them it basically holds the stock to ransom from the hedge funds
The whole thing is a chaotic mess that could play out in several ways but a) it's got absolutely fuck all to do with the actual value of GME and b) it all starts tomorrow when a big load of shorts expire and the short sellers have to buy, potentially starting a big price surge (the 'short squeeze'). A lot more complex to explain is the possibility of a 'gamma squeeze' coming afterwards which could *really* make the price rocket by orders of magnitude (see VW stock in 2008 for a previous example)
It's risky as fuck to be involved with, but there is still huge potential upside. I've got a small amount of spare cash in for fun but I sure as hell wouldn't touch it with any real money |
|---|