GameStop wasn’t shorting their own stock. Giant hedge funds were shorting GME up to 130% of shares. Essentially they shorted more shares then shares available, which is a legal grey area, but opens them up to huge losses if the stock rises. Some internet autists figured this out and started buying up GME stock causing the stock price to rise. This triggered some hedge funds to hedge their short positions by buying stock, which in turn increases the price. It’s a feedback loop. Some of the hedge funds stuck with larger short positions have even gone out of business because of it. The people are finally making rich assholes hurt by doing the same thing they do to us.
There is a sticky about it currently up.
The story is so wrapped in financialese all I got was Gamestop was shorting their stock and got caught
GameStop wasn’t shorting their own stock. Giant hedge funds were shorting GME up to 130% of shares. Essentially they shorted more shares then shares available, which is a legal grey area, but opens them up to huge losses if the stock rises. Some internet autists figured this out and started buying up GME stock causing the stock price to rise. This triggered some hedge funds to hedge their short positions by buying stock, which in turn increases the price. It’s a feedback loop. Some of the hedge funds stuck with larger short positions have even gone out of business because of it. The people are finally making rich assholes hurt by doing the same thing they do to us.
All i know is I bought some at $290. I’ll let you know if I’m eating lobster or rice a roni this weekend