Merrill capital hedge fund short-selled GameStop stock (GME) by borrowing shares and selling them as they thought the price would drop below market when they had to buy the shares earning a profit. They are getting burned because these retail investors collectively drove the price of GME shares way above market price. This GME price is artifical. The reason this is such high risk investing is because short selling can result in losing far more than a 100% of investment because you have to buy the shares you borrowed
Merrill capital hedge fund short-selled GameStop stock (GME) by borrowing shares and selling them as they thought the price would drop below market when they had to buy the shares earning a profit. They are getting burned because these retail investors collectively drove the price of GME shares way above market price. This GME price is artifical. The reason this is such high risk investing is because short selling can result in losing far more than a 100% of investment because you have to buy the shares you borrowed