If it works out, the short sellers will be stuck holding worthless stock. With a short sell position, they've sold virtual stock already and have to buy it back later for whatever price it ends up at. Since the short sellers are on the fence for about 120% of the stock that actually exists, squeezing them by buying in is a good bet. The only way it goes wrong is if the investors lose confidence before the short sellers are forced to buy. The meme status has bolstered confidence to extreme heights, so we're witnessing something crazy now. It's a revolt against some big players and it seems to working amazing. Of course, never bet what you can't afford to lose.
and in the end people will be stuck with worthelss stock they bought for 500 dollars a share
If it works out, the short sellers will be stuck holding worthless stock. With a short sell position, they've sold virtual stock already and have to buy it back later for whatever price it ends up at. Since the short sellers are on the fence for about 120% of the stock that actually exists, squeezing them by buying in is a good bet. The only way it goes wrong is if the investors lose confidence before the short sellers are forced to buy. The meme status has bolstered confidence to extreme heights, so we're witnessing something crazy now. It's a revolt against some big players and it seems to working amazing. Of course, never bet what you can't afford to lose.