Here is a QRD of the GameStop saga so far, roughly accurate
>be 2019
>covid hits
>everyone locked up, gets into podcasts and stocks
>Ryan Cohen, a very successful businessman sees turnaround potential in Gamestop, an unprofitable, failing business
>Keith Gill (roaring kitty/deep fucking value) also sees value in Gamestop and buys a lot
>January 2021, retail's buying pressure on a nostalgic stock causes a short squeeze, due to massive amounts of short interest by hedge funds, and also rumored naked shorts
Stock shorting is when you sell a stock now, then promise to the buyer that you will provide the stock at a later date. The goal is you sell your stock for $10 now, then when you buy it later, you buy it for $8 and profit $2. That's what makes short squeezes dangerous. If Wall St shorted at very low prices ($1-10), and Gamestop squeezes to $400 (like it did in 2021) that is extremely toxic for them. They are now losing ~$390 on every short position.
Causing short squeezes is highly illegal by regulators, because institutions are the only ones with the capital to short at large scale. It's basically wall st declaring themselves the house, and you are not allowed to win at their expense. I'll also add that the GME 2021 short squeeze made retail learn the dirty tricks Wall St uses to steal from the public. They will have their rich buddies get on the board of a company, hire other rich buddies to give bad consulting advice (boston consulting group), then crash the company on purpose. Who profits? Institutional hedge funds who shorted the company, executives who get a golden parachute. Who loses money? YOU. Your 401k brokerage loses 0.5% of its value due to the bankruptcy. Any retail holders lose all their investment. It is criminal fraud at a massive scale. Theft from the public.
