The kicker is borrowing the stock at one price with the intent of lowering its value before you have to pay the brokers back.

Hedge funds bet on failure and use their ability to disseminate misinformation to create the appearance of a need to sell a stock. Nobody wants to lose money, especially the little guy. If the price drops like a rock because it’s believed a company will go out of business or claim bankruptcy, it will create a rush to close your position and sell. They successfully devalued GameStop shares to just 3 bucks each by “shorting” the stock.

Thing is, this is very risky because the price could also go up before they have to pay back the loan. It’s rare because the system is rigged in the favor of the big fish, but enough little guys were able to buy the stock instead of selling and create an increase in value. With a limited amount to go around, more people wanting to buy raises the price even more. What resulted is an enormous jump from just 3 bucks to over 300 bucks per share. Now, the hedge funds will owe the brokers the difference in price from when they borrowed the stock to its value at payoff, today.

They will be on the hook for about 4 billion in losses. Those who bought GameStop did it to hurt the hedge funds as opposed to making money. Selling does the movement no good. Everyone must hold their position or the value will drop again which minimizes the losses for the crooked fuckers.

Are you asking for info about what's going on?

Short selling is an investment or trading strategy that speculates on the decline in a stock or other securities price.

As far as I can tell, this is how it works:

If I think a stock is going to go down, I borrow shares with the promise to return them after a set period of time and I sell them and use that money for other investments. To return your shares I will have to buy some at whatever the cost may be. If the share price goes down, it costs me less to replace the shares than I made originally by borrowing them and selling them. The problem comes when people borrow money to do all of this - as in lots of money. You can find yourself in millions of dollars of debt or if you are a big institution, billions of dollars.

What happened is that the market was pushing GameStop's share price down with expectations it would fall even further. Institutions such as hedge funds were trading with the expectation that the share price would fall even further allowing them to pocket the difference. But once people started buying the stock, the price actually went up ... and up ... and up. This is referred to as a short squeeze - as in the institutions who thought they could talk down a stock, destroy a company and pocket the difference are now getting every penny squeezed out of them because the time frame for returning the shares is somewhat short.