"It went to $5 because its the most shorted stock on the market."
Wrong. It stayed at $5 (instead of popping last summer) because it was the most shorted stock on the market.
It went to $5 in the first place because Gamestrop is a moribund Blockbuster clone whose shtick is games rather than videotapes. It was being shorted by the hedges not because they had any particular reason to hate that company, but because it was a turkey.
GME was mainstream news before the spike to $500/sh. They roped in a ton of suckers.
You wrote: "It went to $5 because its the most shorted stock on the market."
I responded "wrong", because that is a correlation/causation fallacy.
The only difference between Gamestop and, say, Hertz, is that Hertz actually declared bankruptcy. (And Robinhooders got FUCKING CREAMED on that one when it was delisted.)
"It went to $5 because its the most shorted stock on the market."
Wrong. It stayed at $5 (instead of popping last summer) because it was the most shorted stock on the market.
It went to $5 in the first place because Gamestrop is a moribund Blockbuster clone whose shtick is games rather than videotapes. It was being shorted by the hedges not because they had any particular reason to hate that company, but because it was a turkey.
GME was mainstream news before the spike to $500/sh. They roped in a ton of suckers.
You wrote: "It went to $5 because its the most shorted stock on the market."
I responded "wrong", because that is a correlation/causation fallacy.
The only difference between Gamestop and, say, Hertz, is that Hertz actually declared bankruptcy. (And Robinhooders got FUCKING CREAMED on that one when it was delisted.)