I don't think people realize how stupid this idea is. The first few people to buy stocks, maybe, because they're practically betting that some mouth breathers will follow their lead. But after that, what's gonna happen is that it'll spike when everyone else buys, but the justification for buying is complete malarkey, because if the big investors see the price spike, THEY CAN KEEP HOLDING THE POSITION. What's essentially happening is that dipshits are buying expecting everyone who shorted to buy back the stock all at the same time, but all that's happening is that people who think they're big braining stocks are inflating the stock price by buying it in the first place, and they're gonna lose their shit when people realize what a stupid idea that is, and then the big investors are gonna cover their position when everyone else sells their stock.
TL;DR: Internet mob thinks people shorting a failing company is stupid, so they buy it, artificially increase stock price, and will eventually run the stock price into the ground after the meme is dead and people sell the overvalued stock, causing the big investors who aren't stupid to buy back the stock at an even lower price than expected in the long run.
It depends on when the short gets called for the stock. If the prices remain artificially high until then the hedge fund is going to get fucked. But, I doubt Gamestop is going to have that much more momentum after the initial surge. The real investors who jumped in have already jumped out and made their profits.
I don't think people realize how stupid this idea is. The first few people to buy stocks, maybe, because they're practically betting that some mouth breathers will follow their lead. But after that, what's gonna happen is that it'll spike when everyone else buys, but the justification for buying is complete malarkey, because if the big investors see the price spike, THEY CAN KEEP HOLDING THE POSITION. What's essentially happening is that dipshits are buying expecting everyone who shorted to buy back the stock all at the same time, but all that's happening is that people who think they're big braining stocks are inflating the stock price by buying it in the first place, and they're gonna lose their shit when people realize what a stupid idea that is, and then the big investors are gonna cover their position when everyone else sells their stock. TL;DR: Internet mob thinks people shorting a failing company is stupid, so they buy it, artificially increase stock price, and will eventually run the stock price into the ground after the meme is dead and people sell the overvalued stock, causing the big investors who aren't stupid to buy back the stock at an even lower price than expected in the long run.
It depends on when the short gets called for the stock. If the prices remain artificially high until then the hedge fund is going to get fucked. But, I doubt Gamestop is going to have that much more momentum after the initial surge. The real investors who jumped in have already jumped out and made their profits.