Short selling means you sell stocks you don't have, with the promise of buying them later, with a hard deadline.
If the stock goes down, you will end up buying them later, cheaper, than you "sold" them right now.
But if the share price rise, you HAVE to buy them at a higher price.
Because GameStop was expected it to go bankrupt (and share price go to zero, essentially), some investing companies have shorted a lot of their stock. (Sold stock they didn't have, expecting to buy them later at 0$, and keeping the difference.)
But now a shitload of people (or something) bought actual stock at 8ish$, making the stock go UP a shitload to 300+$
This means the people who sold a shitload (shorted) at 8$, will be stuck, this friday, buying it at 300$+. Since they probably sold thousands of share, they'll have to pay thousands times 300$ to buy them back, and they HAVE to.
So, they're going bankrupt themselves.

Short selling means you sell stocks you don't have, with the promise of buying them later, with a hard deadline. If the stock goes down, you will end up buying them later, cheaper, than you "sold" them right now. But if the share price rise, you HAVE to buy them at a higher price. Because GameStop was expected it to go bankrupt (and share price go to zero, essentially), some investing companies have shorted a lot of their stock. (Sold stock they didn't have, expecting to buy them later at 0$, and keeping the difference.) But now a shitload of people (or something) bought actual stock at 8ish$, making the stock go UP a shitload to 300+$ This means the people who sold a shitload (shorted) at 8$, will be stuck, this friday, buying it at 300$+. Since they probably sold thousands of share, they'll have to pay thousands times 300$ to buy them back, and they HAVE to. So, they're going bankrupt themselves.

Short selling means you sell stocks you don't have, with the promise of buying them later, with a hard deadline.

If the stock goes down, you will end up buying them later, cheaper, then you "sold" them right now.

But if the share price rise, you HAVE to buy them at a higher price.

Because GameStop was expected it to go bankrupt (and share price go to zero, essentially), some investing companies have shorted a lot of their stock. (Sold stock they didn't have, expecting to buy them later at 0$, and keeping the difference.)

But now a shitload of people (or something) bought actual stock at 8ish$, making the stock go UP a shitload to 300+$
This means the people who sold a shitload (shorted) at 8$, will be stuck, this friday, buying it at 300$+. Since they probably sold thousands of share, they'll have to pay thousands times 300$ to buy them back, and they HAVE to.

So, they're going bankrupt themselves.