GameStop, January 2021: a short squeeze up close
Link short interest, borrow cost and forced buying.
Module 25 of 26, When it goes wrong: real blowups. Lesson 5 of 6, about 16 minutes.
The takeaway
A squeeze is forced buying layered on top of ordinary buying, not a strategy. Short interest and margin calls can push a price hard, but the SEC found most of GameStop’s rise came from regular buyers, and squeezes end fast and punish late arrivals.
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