Many other heavily shorted securities also saw price increases. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of more than US$500 per share. The short squeeze was initially triggered by users of the subreddit r/Wall-Streeters. Around 140% of GameStop shares sold short, and the rush to buy shares to recapture those positions as the price rose caused it to rise even further. Traders on Reddit found out that GameStop had a high short interest rate and realized they could force a short squeeze, causing shares to skyrocket. Shorting, or short-selling, is when an investor borrows shares and immediately sells them, in the hopes of buying them later at a lower price, return them to the lender and pocket the difference.

Then Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop. It all started after activist investor, and Chewy co-founder Ryan Cohen revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Short interest in GameStop shares dropped to 39% of the float, from 114% in mid-January ( IHS Markit data). 2.ДЄccording to CNN Business, thatвЂ™s partly due to Robinhood, and other brokers, restricting the number of shares of volatile stocks like GameStop, AMC, Express and Nokia retail investors can purchase in a single stock at a time. GameStop plummeted 60% of its value to $90 per share on Feb. The short squeeze last week that propelled GameStop shares and other investments popular with the Reddit crowd now seems to be on a halt. However, stocks of the brick-and-mortar video game retailer continued to tumble in after-hours trading on Feb. GameStop has been big news in the markets for weeks after the stock became a target of Reddit's Wall Street Bets forum back on Jan. Pooja Lekhi breaks down what happened and why. Our first-party cookies include cookies that are strictly necessary, functional cookies, cookies related to analytics/performance and advertising-related cookies.Still trying to figure out why everyone is talking about GameStop and the stock market? University Canada West professor Dr.

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