Didn't have time to catch up OR find it tough to follow? Let me break it down into a simple story:
1. GameStop is a video games retailer. Naturally, in today's online age, it's doing poorly: losses & even plans to shut down 400+ stores.
2. Last April, its stock price was at $3.25.
3. Last September, an investor put in money to increase online sales & to compete with Amazon: its stock started to rise.
4. But Wall Street believed this to be an unrealistic dream & decided to "short" the stock. Simply, "shorting" is to bet that the stock price will fall. If it doesn't, you make serious losses.
5. Now, the ~2mn members of the subreddit "WallStreetBets" started promoting the stock like crazy! Why? Just to screw the hedge funds over.
6. It gained serious momentum: these individual investors are putting as much money as they can to keep driving the stock up.
7. With very few selling their stock & quoting high prices, it's been rising uncontrollably: 1700% in January!
8. Melvin Capital, a hedge fund, has lost 30% of its $12.5bn assets. Interestingly, it was also short on Tesla last year. Such "shorters" lost $38bn on Tesla last year.
9. This entire situation is called a "short squeeze". How long it will continue & if/when will the hedge funds fold, remains to be seen!