The Ongoing Victories in the GME and AMC Short Squeeze
One of the most exciting moments of 2021, so far, at least, was the populist uprising against the hedge funds in early February of 2021. As a quick refresher, that was when small investors, organizing largely on the Reddit forum r/Wallstreetbets (WSB), stuck it to the man by orchestrating a short squeeze of GME and AMC.
By buying GME and AMC (GameStop and the movie theater chain), both heavily shorted stocks, they were able to send the share prices skyrocketing, financially punishing the shorts (especially Melvin Capital) that were hoping GME’s share price would crater. Furthermore, because short sellers have to “cover” their positions if a share price rises, those were real losses that they suffered, not just paper losses. Hedge funds lost billions in days as the common man bought and held GME.
Continue reading “Did Wall Street Bets Win? Big Banks Clamp Down on Shorting GME and AMC!”