Let's just assume that there are 100 shares of GameStop (worldwide) and go from there. Let's assume that the price per share/stock before all of this was $100 (in a "good" economy, etc.). How would this all work?

A nice timeline, step by step, line by line would be nice. For ex:

  1. Stock is selling at $100 per share (100 shares total). June 20XX

  2. Economy starts tanking, stock now at $95 per share. August 20XX

  3. People start predicting that it will go down further, thus they start "betting" (insert definitions that are accessible and not jargony), etc.

^ something like that would be nice. Thanks!

  • howdyoudoo [comrade/them]
    ·
    4 years ago

    what happened with gamestop is a few guys back in July felt like GME was undervalued. The high short interest was an additional opportunity if they could get the price up and into a "short squeeze" (the feedback loop I just mentioned)

    one of these guys (deepfuckingvalue) wrote a bunch of posts on reddit pointing it out. He bought tons of GME at $4 (worth $220 now)

    he kept posting on reddit and most people called him a dumbass, a few were convinced and went along.

    basically rinse and repeat until today. It has been rocketing up since late August.