February 1, 2021 · 22:55 · 9 min
How the GameStop short squeeze works
Prompted by Nathaniel's on-air question 'What prompted that, Ben?', Ben (speaker-1) explains short selling and the squeeze: borrowing and selling stock expected to fall, the risk when the price rises instead, how Reddit's WallStreetBets targeted heavily shorted GameStop to force hedge funds to buy back at huge losses, and why that buying pushed the price higher still.