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GameStop short squeeze part 2


A few weeks ago there was a huge amount of media attention and hype around the situation with a few stocks that were getting shorted. Specifically GameStop (NSYE:GME) was the subject of a huge short squeeze that sent the price of the stock sharply upwards. If you want to know more about how short squeezes work read this post about the mechanics of a short selling. Despite the attention of the mob and mainstream media moving on somewhat the short interest remained high and the short squeeze with GameStop is certainly not over yet:

Gamestop short squeeze part two

The trade itself was always a much bigger deal than just retail investments and memes being posted on the internet, although the cultural shifts that are happening as a result of this are not something to be underestimated. Watch this space closely.

I'm still paying very close attention to this because there's large systematic counterparty risk issues in the markets that these sorts of short squeezes could potentially expose.

Published: Tue 09 March 2021
By Janis Lesinskis
In Economics
Tags: stonks-market gamestop short-squeeze markets

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