Hedge fund tries to short Gamestop, now gets short squeezed by R/wallstreetbets

[Fudotei]

Of course, for every Citron, there's people who can follow the intuition of the (as they refer to themselves) apes on r/wsb and make some money:

https://www.reuters.com/article/us-blackrock-investment-gamestop/blackrock-may-have-raked-in-2-4-billion-on-gamestops-retail-driven-stock-frenzy-idUSKBN29W22T

Power to the players indeed. This saga has been interesting for me: hard to argue that democratization of trading (via commission-free brokers) is a bad thing for main street, as risky as it is. Should be worth a mention in a think tank about how to spread it more.

[Fudotei]

I mean, is there any difference between investing in this and investing in Bitcoin?

Yes, Gamestop is a company whose stock price is being inflated because of exposed financial speculation. Bitcoin is internet money that goes up because it takes the electrical grid of a small Central American nation to generate more

Both are good investments compared to the absolute state of interest-bearing savings accounts and bonds

[Fudotei]

So what is GameStop going to do with all this extra new capital?

What extra capital?  They didn't issue any new shares.  Conceivably they could do a stock offering to take advantage of their stock being overvalued, but by the time they could likely do that, the stock price will likely have returned to normal.

There were a couple major shareholders of GME who had their stuff balloon. Not directly related to the first comment - these people should sell and keep liquid $750m, right? Guy who had 13.9% had that.

https://www.marketwatch.com/story/gamestop-shareholder-sells-off-stake-valued-at-over-1-billion-11611855951

Go figure...