Incase you haven't caught up yet, a subreddit with 2 million users decided to Bognadof the Gamespot stock, so much that 3 days ago it closed $40 US dollars, then yesterday it was $75 and just now when the market closed it was $145 US. Gamespot is now worth 10 billion dollars, the first time ever in it's history and Melvin Investment, a hedgefund that was short selling the stock has lost an estimated 6 billion dollars, after receiving a 2.75 billion bailout yesterday from 2 other investment firms. This really is entertaining to watch and is costing someone rich a lot of money.
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If anything, the regulatory result will likely be prohibiting naked short selling (short-selling a stock without a standing agreement to borrow an existing share). The brokerages that permitted this knew what they were doing was dangerous, and they did it anyways.
Shades of the junk bond bullshit of the '80s?
Shades of -$20/barrel oil this past spring, for a more topical example.