$GameStop (GME.US)$ I almost 100% believe I now know the cau...
$GameStop (GME.US)$ I almost 100% believe I now know the cause of the previous gamestop short squeeze and the cause of the next one to come. The value of an asset is forced to rise when massive amounts of money is being printed by the fed and it becomes nearly impossible for short sellers to short an asset down to their target price against inflation especially as more and more money continues to enter the economy naturually adjusting asset values, and with more rate cuts on the way they will inevitably be liquidated. I could go much more in depth but it would take a while but in summary short sellers are technically shorting inflation of the USD.
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Tonyco : Er.. the previous short squeeze was a unicorn event. Retail investors were flush with stimulus dollars. Retail investors had much more free time due to the pandemic. Thus, more regular people were able to coordinate successfully, and as it gained momentum, more people were free to pile in.
In addition, short positions were caught unaware due to the novelty of the movement. They probably thought the momentum wouldn't last as long as it did, which is why they kept re-opening shorts they would then have to cover, driving up price even more.
TL;DR: It's not gonna happen again. GME is a dead company. Spend your money elsewhere.
Aaron Invests (AI) : You guys just wanted to made me yolo on options![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Parp OP Aaron Invests (AI) : I don't recommend you yolo options it's better to just buy shares and only invest as much as you are willing to lose don't follow the crowd too much, this can take some time.
TrueApe Tonyco : lol….Trust me bro
Rusty Shackleford 1 Tonyco : I wouldn't say a dead company. The MOASS people are hoping for isn't going to happen. Basically, all of your points are true. The short interest was over 100%. Any stick that has that much can be short squeezed. They pay a lot more attention, so that won't happen again, but they have 4-5 billion cash on hand with basically no debt, so they should be able to find a way to make money. Even leaving 5 billion in the bank will make you millions in interest each year. I personally am not worried about the company going bankrupt, but feel free to buy all the shorts you want because MERICA