![]() On January 19th, 2021, Vice reported on the short squeeze. On January 17th, Redditor TitusSupremus made a DD post hyping up further buying pressure in the stock that gained over 12,900 upvotes (shown below, right). ![]() On January 13th and 14th, DeepFuckingValue posted screenshots of their potential call earnings from their GME calls, with the January 13th post (shown below, left) gaining over 41,900 upvotes in ten days. During that period, multiple /r/WallStreetBets users made posts in which they prompted others to buy GameStop stock and options. The event served as a trigger for the initial leg of the short / gamma squeeze in the stock, with GME share price increasing from $19.95 on January 12th to $31.40 on January 13th to $39.91 on January 14th. This, along with hype about recently-released video game consoles like the PlayStation 5 and Xbox Series X sparked renewed interest in GameStop among investors, which had bottomed out at $3 a share in 2020 as many people thought the store would soon go bankrupt. ![]() On January 11th, 2021, Chewy founder Ryan Cohen joined the GameStop board of directors. The number of posts about GameStop stock in /r/WallStreetBets increased in December 2020, with some users betting on an upcoming short squeeze in the stock (posts shown below), with hedge fund Melvin Capital, a major holder of GME short positions, being collectively chosen by the subreddit as an antagonistic figure.įirst Short Squeeze / Gamma Squeeze Leg (January 11th – January 21st) In November and December 2020, following the October 8th surge, multiple /r/WallStreetBets users made posts hyping up GameStop stock, including due diligence posts predicting a possible short squeeze, leading to those /r/WSB users who bought in the stock referring to themselves as GME Gang. On the same day, DeepFuckingValue posted his potential earnings from his GME calls, at that time valued at over 2.2 million dollars (shown below, right). On that day, Redditor namsilat made a "due diligence" (DD) post in which he advised buying on January 15th, 2021, call options for GME with a $9 strike price (shown below, left). On October 8th, 2020, the price of GME stock rose from $9.36 to $13.49, which caused /r/WallStreetBets users to take increased interest in the stock. In September 2019, /r/WallStreetBets user DeepFuckingValue, aka Roaring Kitty, started making monthly posts of their January 15th, 2021, $8 call options in /r/WallStreetBets subreddit, mentioning Burry in one of their earliest posts. In the following weeks, several news outlets reported on Burry's investment. On August 16th, 2019, hedge fund manager Michael Burry, known for shorting the 2008 real estate bubble, reported purchasing 3 million shares, or 3.3% of GameStop, citing the short interest of 63% in the company possibly resulting into a short squeeze as one of the factors affecting the decision to invest. The hype resulted in GameStop (GME) becoming of the most traded stocks on Wall Street that month, with a massive number of retail investors buying the stock in an attempt to force hedge funds betting against it into large losses.Īs GameStop stock garnered attention globally and became one of the most-discussed topics online in late January 2021, the events were followed by a several movie announcements and a number of controversies, including restrictions on trading the stock imposed by several brokerages, and stock market as a whole being put under government scrutiny. ![]() WallStreetBets GameStop Short Squeeze refers to the massive surge in the price of GameStop shares in the stock market in January 2021, when it rose from $17 to over $500, in a significant degree due to a campaign by users in the /r/WallStreetBets subreddit. Gamestop, stocks, short squeeze, gme, stock, wallstreetbets, /r/wsb, citron, shitron, deepfuckingvalue, gme gang, ryan cohen, titussupremus, andrew left, smollppmaster69, spike142, melvin capital, we like the stock, apes together strong, namsilat, gamesto Overview ![]()
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