In the past, they had (allegedly) run the same short play on other businesses and gotten away with it - short a stock to 0, pick apart the carcass, no taxes… The shorts got caught with their pants down. The “internet” got wind of GameStop’s short squeeze potential and in late 2020-early 2021, decided to pile in as “long investors” (retail investors) driving the price up 1642.78% in just 11 days. The shorts are squeezed between an ever-increasing share price and having to close to avoid taking larger and larger losses. Two investors both buying the same stock and pushing the price higher and higher before the shorts can close all of their positions. Short investors start buying the stock to close their short positions which also causes the stock price to rise.Long investors buy the stock which causes the stock price to rise.Mechanically, a short squeeze occurs when investors have a lot of short positions open on a stock and then 2 things happen: The GameStop play was and is none of those - It’s a short squeeze. Going long is buying a stock and selling for profit after more than one year. Swing trading is buying a stock and selling for profit within a couple of months. Here are three (loose) trading definitions:ĭay trading is buying a stock and selling for profit within a couple of days. I did, however, like many others, see his July 2020 video on my YouTube feed where he went by Roaring Kitty. It’s unclear, to me, who saw what, where, and when, but DeepFuckingValue had been posting pieces of his GameStop thesis around Reddit and getting healthy criticism.
#ANGRY GIANT NERD FULL#
With that said, full disclosure: I own GME 7.60%↑ stock.
![angry giant nerd angry giant nerd](https://assets.wired.com/photos/w_1390,h_782/wp-content/uploads/2014/12/wired_angry-nerd-temp-top-five-superhero-trends-600x338.jpg)
If you haven’t already, go get caught up with Part 1, GameStop Is Going to Blow up the Economy?? - The Setup. This is Part 2 of a two-part post outlying the GameStop story as a phenomenon that’s been shaking the financial markets around the world - with implications in the crypto and real estate markets as well.
![angry giant nerd angry giant nerd](https://giantnerd.co/wp-content/uploads/2022/07/d6624a5c-86d4-438b-9448-6457b66ca0ae_1080x1080.png)
The GameStop Short Squeeze Saga on our YouTube Channel