markets
The Gamestop story so far—explained
Jan 28, 03:01

GameStop shares have been on fire this year despite the video game retailer's struggles with losses, debt and falling sales. So what is going on? GameStop's stock first showed real signs of life on January 11 after it announced an addition to its board. Several professional investors, unimpressed with its finances, opened short positions against the stock, betting it will fall. But some Reddit r/WallStreetBets forum users decided to torpedo short positions of these investors, triggering a massive short squeeze (rise in a heavily shorted stock forces short sellers to buy more shares to cut losses, causing further price jump). The GameStop saga signals a power shift from big funds to rookie investors.

GameStop gfx - Jan 28