GameStop shares are jumping again, but short sellers aren’t backing down

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GameStop shares are jumping again, but short sellers aren’t backing down

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2021 Jan 26, 6:54am 18,281 views 215 comments

https://www.cnbc.com/2021/01/26/gamestop-shares-are-jumping-again-but-short-sellers-arent-backing-down.html

GameStop’s short interest stands steadily at 139%, unchanged from a week

Interesting read on how a messageboard found a stock shorted at > 100% of the stock, so they decided to collectively buy the stock, hoping to make money off a short squeeze.

IMO, gambling, not investing, but I should add it to my watch list to see what happens.

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211 EBGuy 2021 Apr 15, 5:01pm

Patrick says

That's also kinda interesting because the dividend is being paid out twice in the case of shorted stock.

Yeah, that's something I didn't realize until we had this discussion. It's a "short dividend stimulus" in the overall market.

212

zzyzzx 2021 Jun 23, 5:33am

https://dailycaller.com/2021/06/22/hedge-fund-white-square-capital-gamestop-meme-stock/

A London-based hedge fund that bet against GameStop during the first “meme stock” rally in January is shutting down after facing double-digit percentage losses, the Financial Times first reported Tuesday.

White Square Capital said in a recent letter to investors it would shut down its main fund and return capital following a review of its business model, according to people familiar with the matter. The hedge fund had managed about $440 million in assets during its peak but suffered huge losses betting against GameStop early this year, the Financial Times reported.

Small-time retail investors, coordinating their actions on online forums such as r/WallStreetBets in January, drove up the price of so-called “meme stocks,” including GameStop and AMC Entertainment. GameStop surged from less than $20 at the start of the year to more than $480 at its peak.

Hedge funds caught in the short squeeze, including Melvin Capital and Light Street Capital, incurred substantial losses. Melvin Capital, the largest fund that bet against GameStop, saw more than half of its $12.5 billion portfolio wiped away in January.

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