GameStop Goes Parabolic: How Reddit Squeezed Short Sellers

 
January 28, 2021
 
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GameStop Goes Parabolic: How
Reddit Traders Squeezed Short Sellers
The hottest topic on Wall Street right now is GameStop short selling, and how traders from a popular subreddit sent its shares parabolic.

The degenerates over at r/wallstreetbets have targeted heavily shorted shares of GameStop to make short sellers like Citron pay… And pay dearly they have.

Short sellers are down about $91 billion for the month of January. For comparison's sake, they lost $243 billion for all of 2020, a 20% beating.

So today, I'm going to break down the GameStop short selling craze and explain exactly how it happened.
How Reddit Traders Screwed Short Sellers
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The Russell 2000 index is an index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which is made up of 3,000 of the largest U.S. stocks. It is a market-cap weighted index. Many investors compare small-cap mutual fund performance with the Russell 2000 index because it reflects the return opportunity presented by the entire sub-section of that market rather than opportunities offered by narrower indices, which may contain biases or more stock-specific risk that distort a fund manager's performance.
 
 
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