Correct me if I am wrong but Citron is basically hedging their bets that the price of gamestop will fall dramatically and go bankrupt. They short-sold, so they will by Gamestop shares at whatever price it is at in the future (they want them to fail). WSB, realizing this, is artifically pumping up gamestop to the point where Citron will have to buy a crap ton of super expensive shares making the reddit people very rich in the process. So it's a battle of who is more influential at manipulating the market. Tons of people are very pissed off about it and it's really funny
https://www.bloomberg.com/news/articles/2021-01-22/gamestop-tug-of-war-gives-reddit-army-a-win-on-record-volatility
When you sell a stock short, and it goes to $0, you make a profit of 100%. When you sell a stock short but it goes higher, your losses are potentially infinite

    • windowsxp [she/her]
      ·
      4 years ago

      If you do this turn off share lending (apps and brokers occasionally loan out your shares to other brokers or investors), that's the whole point of trying to short squeeze - dry up liquidity and make them pay 20:1 or more for GME to cover their margin calls.

      Also, if you're doing this and you're starting to hear a lot of other people doing it then it's probably time to get out, lol. A lot of bankers and shit knew things were about to go down 1929 because even the shoe shine boys were trading stock on margin, same deal in 2008 with mortgage loans and CDOs. You could make some money but it's already sitting at 60 or something per share and apparently that's around 355x price to earnings (the same as Amazon) so the bubble is going to burst any second. It's only going up and staying up because of all the margin calls being made and you can never tell when somebody is about to miss a call and not have enough cash to cover and then everybody is just going to be out whatever they put in.

      Only gamble the money you're not afraid of losing.

        • windowsxp [she/her]
          ·
          4 years ago

          You can still make money yoloing on GME, lol. I think it has room to go up, the big squeeze hasn't happened. But if you didn't get in during the summer when it was like 5 or 8 per share it's not like you'll be able to turn a grand into a house down payment like some of the people on wsb were able to. I wouldn't be suprised to see $100 or more per share next week. Don't take random internet people's advice and actually read up on GME and short squeeze for yourself along with the greeks to make your own decision.

          wsb seems cool when you read about the people starting with a random $500 bonus and turning it into a million over a year or two, but it's also full of people that squandered fortunes. It is literally gambling.