[KarlInOhio]

The problem is that the stock doesn't have an inherent value of $350 per share. If you had your fun and games running it up, you better get out before it drops back to $20. Otherwise it will be as fun as waking up with a hangover and a full back tattoo and wondering what happened last night.

[srmanuel]

I don’t own Gamestop, I don’t invest in that type of thing, I mainly buy traditional large cap stocks that pay a dividend....which gets rolled over into new shares....

I’m not an active trader....

What I think is funny is a bunch of major Wall Street Firms were taken to the cleaners by a bunch on internet trolls

[jdsteel]

bingo.

[blueplum]

of course it doesn’t. But if you sell on double money, then take half of that and buy and sell again on double money, money is there to be made. Compliments of the dismayed short sellers who were arrogantly blatant in what they were doing to the stock.

[wgmalabama]

Not when the shorts have to buy 150% of the floating stock. That’s right, they were a lot of naked shorts. The tards have them by the curlies if the tards hold. I didn’t think the would but they are.

[usconservative]

If you had your fun and games running it up, you better get out before it drops back to $20. Otherwise it will be as fun as waking up with a hangover and a full back tattoo and wondering what happened last night.

That's not how short-selling works.

Short selling means I acquire a stock at a certain price, oh, say $20/share. But I don't really buy it, I "borrow" it.

I then turn around and SELL that stock for more than I "borrowed" it for to someone else, oh, say $25. I sell the stock for $25 to a buyer, pay the $20 "borrowing" cost for the stock and pocket the $5 profit.

What happened is that a bunch of Reddit members saw a Wall Street Firm borrowing the stock to short-sell it. These same Reddit members bought up as much of the stock as they could driving UP the price.

That's a BIG problem for the short seller. These same Reddit members who bought the stock can now SELL it back to the short-seller and the short-seller has to BUY it.

Oops. In order to pay the $350 that the stock is now "worth", the short-sellers have to liquidate a ton of other assets and take a huge loss, to buy the stock back for $350/share when they "borrowed" it for much, much less.

Personally, I think short-selling should be banned. That's what caused $150+ oil back during the Obama reign of terror and why you and I were paying $4.50+/gal at the gas pumps.

In this case, seeing a bunch of Wall Streeters take it up the backside because some smart Redditor's saw what they were doing and turned the tables on them? Nah. I don't feel bad for them. :-)

[Mathews]

Hellofa time to buy a put option on this.