Some hedge fund manager decided to short game stop because its a shitty company and going out of business eventually. Short = make money on the way down. the more shares that are shorted the more pressure it puts on the stock to go down.
Reddit wall street bets got wind of this so everyone started to buy the stock, forcing these brokers to cover their shorts so they wouldn't lose more money ( I read 1 fund manager lost 4 billion over this), which means less shorts = higher price so it just skyrocketed from $4 last year to $350-375 today.
Looks like now there may be talk about shutting the trading down on this stock because of all the interest, but its completely legal. If they do shut down the trading it will scream favoritism towards hedge funds and people will stop investing in Nasdaq listed stocks or nasdaq itself thus they could start a downward spiral on the exchange.
Can someone eli5?
Some hedge fund manager decided to short game stop because its a shitty company and going out of business eventually. Short = make money on the way down. the more shares that are shorted the more pressure it puts on the stock to go down.
Reddit wall street bets got wind of this so everyone started to buy the stock, forcing these brokers to cover their shorts so they wouldn't lose more money ( I read 1 fund manager lost 4 billion over this), which means less shorts = higher price so it just skyrocketed from $4 last year to $350-375 today.
Looks like now there may be talk about shutting the trading down on this stock because of all the interest, but its completely legal. If they do shut down the trading it will scream favoritism towards hedge funds and people will stop investing in Nasdaq listed stocks or nasdaq itself thus they could start a downward spiral on the exchange.
Thank you very much. I read on the thread for awhile but couldnt quite figure what was up. Appreciate it fren!
Hahahaha YESSSSS!
They've already started shutting it down through retail brokerage firms.
Just another red pill.