One man who isnвЂ™t happy about this is Scion Asset Management boss Michael Burry (played by Christian Bale in The Big Short, the docudrama about subprime mortgages and the housing market collapse). What does this mean?ДЄs Amber Jamieson of BuzzFeed News writes: ItвЂ™s вЂњa reminder that stock markets are reliant on individuals, their feelings, and their actions.вЂќ As the WSB forum is so large these days, itвЂ™s being viewed by some as a kind of uprising, mounting a challenge to the traditional investors who are, as they see it, damaging GameStop. But it seems AndrewвЂ™s comments further encouraged investment from Redditors. The WSB community has been encouraging each other to buy stocks in GameStop for some months now, especially since August last year, when Ryan Cohen вЂ“ the founder of a pet food superstore that sold for $3.35 billion in 2017 вЂ“ invested in it. Last week, CitronвЂ™s founder, Andrew Left, called GameStop an overpriced, вЂњfailing mall-based retailerвЂќ and then published a video in which he predicted that its stock will fall from its then current price of $40 down to $20, вЂњBut instead, the GME stock price rose even higher as redditors called on investors to put as much money into the company as they could.вЂќ Wall Street hedge funds, such as Citron Research and Melvin Capital, had shorted the stock of GameStop, вЂњmeaning they had bet against it and needed it to drop in price in order for their investments to be successful,вЂќ as per Buzzfeed News.

Now in the vortex engulfing GameStop Corp., they have a new name: the establishment.вЂќ What happened this week? (There was huge criticism of short sellers during the financial crisis of 2008.) According to Bloomberg: вЂњShort sellers have been called a lot of things. вЂњMany Wall Street fortunes have been made this way,вЂќ The Guardian writes, вЂњbut if the price doesnвЂ™t fall, the losses can be huge.вЂќ вЂњShorting, or short-selling, is when an investor borrows shares and immediately sells them, hoping he or she can scoop them up later at a lower price, return them to the lender and pocket the difference,вЂќ says Market Watch. As a result, hedge funds began short-selling GameStop. Following the announcement of mass closures last year, shares could be bought for as little as $3.25 each. GameStop is an American video game store that, while popular among gamers, has struggled to survive the great coronavirus retail apocalypse.

Reddit the big short