Have you been following the GameStop saga? It’s faster than ticker tape.
If this is all like, “whaaat???” to you, here’s a short (heh) version:
Around the second week of January, the Reddit group r/wallstreetbets noticed GameStop stock trading around $15-18. They saw it as undervalued, and also being shorted by hedge funds to a significant degree. They started buying. And buying. A feeding frenzy has ensued, running this stock up now to $325 as of this morning, though I have also seen it well over $400 in the past week or so.
As a result, the hedge funds have been socked with some huge losses. They are trying to make up for it by shorting even more. This is known among people who are not Gods of Big Finance as, “throwing good money after bad.”
And now it turns out that they may have been, um, overenthusiastic in their execution of their short-sales, because the amount of GameStop stock now sold short is greater than the amount of GameStop stock that exists in the world.
There may be a handful of folks from the SEC stopping by to see some of these Gods of Big Finance later this morning.