Could someone explain to me please what's the huge significance of the Reddit users buying up GameStop and driving the price up?

The hedge are "shorting": They borrow the stock and sell them at current market price, then the hedge tank the stock by bitching about it on CNBC and stock analysis column. Then when it is low enough, they buy the stock back and return the stock. They make money because of the price difference.

Reddit came in and see the hedge bombing the economy for years and creating recessions that made their parents jobless 2008. They decided to buy and hold. For the entire year, the hedge has been poisoning the GME well, intending to short them at $5. But if the reddit ppl keep buying and holding, the price will remain high. At the end of the month, when the hedge have to give back the stock they borrowed, they will have to buy them back at the escalated price, way higher than what they paid for. Thus, they will be losing more money, the reddit will then get their revenge on the hedge for manipulating market for years, which left their childhood penniless in the last recession.

Thanks, r1.

Is this going to bankrupt the superrich hedge fund managers like Bill Aickman? And is this going to hurt the overall economy, or just the hedge fund managers?

I mean they could R2 bankrupt the hedge, but the hedge probably gonna get some BS bailout so y'know it will be fine. The rich guy behind these however, might get "bankrupt" but not really bankrupt. Sure, on paper, they will say that he has exhausted all his asset, so creditors cannot go after him anymore, but really, guys like these hide their stuff in Cayman, so he will be fine and not gonna be like begging for food. And y'know, this whole thing coalesce around only GME really, so the economy will be fine. Wall street do this with 100's of stock every year and that's what caused recession.

If anything it will stimulate the economy, because a bunch of incels are now stock owner of AMC, GME, Blackberry so they have the fiduciary duty to actually frequent these business to get their stock stay afloat. The hedge, however, they pump-n-dump and short all the time, so they will just move on to ruin the next stocks.

The market is way overvalued now anyway, so a correction is coming. This speculative playing around may trigger it, who knows?

Here's a good discussion of your question, op.

Some of the hedge funds were in a position where they had to sell other stocks to cover their loss position on GameStop. When there is higher than normal selling in a given day, it causes downward pressure on the overall stock market (lots of people buying=prices rise, lots of people selling=prices drop). Anyone who has investments in index funds or other assets typically in retirement accounts gets dragged down with them. So everyday people get dragged into the turmoil. You can bet on this: the SEC is investigating and will push for regulations to prevent this in the future. It will not be immediate but some things will change.

GameStop ha been in a decline, its stock values were dropping, hedge funders were short selling as an investment strategy to hasten its demise. It's a short term strategy for making money from a failing entity.

Gamers got together and started buying stocks, driving up the value and saving the company, at least for now.

* Short selling occurs when an investor borrows a security and sells it on the open market, planning to buy it back later for less money. * Short sellers bet on, and profit from, a drop in a security's price. This can be contrasted with long investors who want the price to go up. * Short selling has a high risk/reward ratio: It can offer big profits, but losses can mount quickly and infinitely due to margin calls.

Basically, investors were betting against GameStop, gambling on the likelihood it would fail. Gamers save the day and cost some hedge funders a lot of money.

R3 There is something wrong with the way you write but I find it inexplicably cute and sexy.

I'll just leave this here.

Good for little "Jaydyn"!