For those wondering what happened with GME, BBBY, AMC, BB, LGND

Many may wonder what happened recently with GameStop among other stocks which really went to the moon this month.

Basically what happened with GME’s stock price was a combination of a gamma squeeze (1) and short squeeze (2).

The gamma squeeze in short means that the market maker tries to hedge their positions but can’t (way oversimplified but I’m not gonna bore you with options).

The short squeeze in short in this context means that there are more shares shorted than actually exist, which has large implications for those who shorted. To close a short position you need to buy the share so you can give it back, this leads to buying volume which leads to increased prices. But if the supply of shares isn’t high enough and the demand to close short positions is so large this could lead to a cascading effect ending very bad for the institutions who shorted (most likely GameStop will offer shares at a market premium to these institutions so they can close their positions and GameStop can take advantage of the situation)

This excitement from wsb spilt over and people started scrambling for other shares with high short interest on the float ( Short interest is the number of shares that have been sold short, here represented as a percentage of float which means available shares), AMC, BBBY, LGND and BB are all over wsb now.

Most comments on wsb (gme is understated because it has its own thread)


This might end up bad for a lot of retail investors, especially if they don’t know what they’re doing so watch out for the cesspool which is wsb, tread carefully as this is a very complex event. I personally would stay away from it but it’s rather interesting nonetheless.

For those who want to read more:


Update: note that GME was the only one with short interest as % of outstanding shares above 100% at the time, BB, BBBY etc didn’t have that characteristic.

Seems that short interest has gone down a lot since I wrote this, Ortex estimates the short interest to be at 27mil shares as of a 1/2/2021 estimate which leads to days to cover short of 0.76 which is a whole different situation from last week when I wrote the above. So the story might be a bit different now.

Disclaimer: I currently don’t own any GME shares anymore (sold out at a nice profit last Friday) I had 0.2 shares of GME for fun. It’s still very risky at this point and don’t invest any money that you absolutely can’t afford to lose.


Fantastic write up, enjoyed reading

I was watching the GME with :popcorn:


I only read yesterday that Bed Bath & Beyond are likely to default if things don’t change during these trying times (according to power ratings). So when I saw it trending I was utterly confused.

Very insightful, thanks for sharing.

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Very interesting. :smiley:

Thats when I am happy investing instead of trading.

How can you short more than shares actually exist? I thought shorting means borrowing with the hope stock drops… But how can you short something which does not exist?!?

Who came up with that bs? :upside_down_face:

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Maybe it includes buying put options? (Or selling calls)

Not entirely but it’s factor a of demand surge!

A short squeeze is caused by a rapid and unexpected surge in the price of an asset – usually a stock. Short sellers will seek to abandon their short positions as prices rise.

This causes demand for the stocks to rise, which reduces supply. This shift in the supply-demand dynamic causes prices to rise further, which compounds the effect of the short squeeze.

Let’s say there are 100 outstanding shares of company X held by investor A. Investor B comes in, borrows these 100 shares and short sells them to investor C.

Which means, outstanding shares=100, short interest =100.

Investor B borrows these 100 shares again from C and short sells them to investor D.

So now, short interest is 200 and outstanding shares is 100.

How could B then ever fulfil his obligation to return the 100 shares to A and 100 shares to C? He can only buy 100 shares but he is short 200 shares. Well, a short squeeze then happens and investor D (most likely the company) can charge investor B whatever he wants for the shares which D raises since investor B has to have them (or investor B goes long synthetically or whatever). If short interest on outstanding shares reaches more than 100% this is always bad for the shorter unless the company goes bankrupt.

But the number I displayed were short interest as % of the float (with game stop you still have the above illogical situation)
More explanation: Short Interest % of Float 2.0 –


where did you read this about BBBY? Would be interested as I thought they weren’t in that bad of a position yet.

They was reports that Blackberry Has sold sold 90 patents related to smartphone technology to Huawei

But Back berry rallied 25% last week after report that it had settled a patent-royalty dispute with Facebook.

BlackBerry itself is not aware of any material, undisclosed corporate developments and has no material change in its business or affairs that has not been publicly disclosed that would account for the recent increase in the market price or trading volume of its common shares.

Heavily shorted Stocks

Bed Bath & Beyond
AMC Entertainment

Among all the above BlackBerry appears to be the one that still has potential based on their cyber security technologies

I mean eventually GameStop will come down.
But what does that mean for the retailers who went long?

They will lose all funds and short sellers will go rich?

Then everything starts all over again?
I don’t get it

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difficult question as this could play out in so many ways. The short sellers just realistically can’t close their positions in a normal way.

They might go long synthetically (personally am not informed enough on the implication of this on the market makers and the market, could imagine this scenario playing out badly for retailers) but most likely GameStop will take advantage of the situation to ‘bailout’ the short-sellers by issuing new shares (possibly even above market price as they have the power to do that in this special situation) to these institutions so they can close their positions. Good scenario for retailers.

It could also happen that retailers slowly sell their shares to the shorters so they can cover, then the people of which the shares were borrowed and received them back sell again. This is just the reverse of how the higher than 100% short interest was created and this would be the short squeeze as the shorters buy up all the shares that are sold to close their positions, which could happen fast or not so fast.

Also, combinations of these scenarios might occur.
This is a very complex situation so proceed with caution when approaching GME.

This is truly an exceptional thing, especially as many are seeing this as a revolution against big hedge funds and the old traditional wall Street. It might go up a lott it might crash, but one thing is certain that there’s gonna be a lot off volatility with this stock.

Edit look at what happend in the past:


Also read that this Friday is going to be an important date:
In short, the market makers wrote a lot of OTM calls, and then have to buy shares to cover when those calls go ITM around noon. This phenomenon is what caused the absurd spike from $50 to $75 in just an hour and a half last week. That’s the gamma squeeze that everyone has been talking about, where MM’s couldn’t cover fast enough. And another one might happen this Friday. But it also might not if the stock crashes as momentum dries up

How’s it going folks?? Anyone else following the GME train at the moment? With all that’s happening and being said does anyone think it ai hit the $1000 ps mark??

Nice :facepunch:t2::facepunch:t2::facepunch:t2::facepunch:t2:

Yeah I’m in two minds wether to go for it. Pre market looking great and there’s a lot of talk across the world about it so there should be a lot of people jumping onboard. Some big options calls also so makes you think that little bit more lol

50k to 13m

I’m not touching it :joy:


A lot of big takings to be had lol but the short squeeze is unreal!! Gonna be a lot of people holding on also so I’m seriously considering it lol

Just looking at AH/pre

Up 20% but what happened with that trade lol

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Isn’t just Wall Street bets targeting large short positions? Nothing has changed in the business as such has it?

Made a pie spread the risk lol risky pie but even my gamble pie is up 7.45% from last week so ride the hype trains