No one understands hedge funds more than I do!

$GameStop(GME.US)$ Retail investors often fail at stock picking because they lack extensive research. Let me explain: if the number of shorted shares reaches 140% of the total float, meaning if there are only 100 shares available, but 140 shares have been sold short, what's happening? It's because the same shares have been borrowed more than once. One hedge fund borrows shares and then lends them to a second hedge fund, which can lend them to a third, creating an infinite loop. The higher the short interest ratio, the riskier it becomes. A normal range is around 7% to 10%, but if it exceeds 50%, it should raise a red flag.

If the stock price starts to rise unexpectedly, short sellers will panic and rush to buy back shares to cut their losses. This buying action drives the stock price even higher, like adding fuel to the fire. Given retail investors' tendency to chase rising stocks and panic sell falling ones, they might flock to buy in, further squeezing short sellers. This could lead to hedge funds being crushed and potentially going bankrupt. This phenomenon is called a "short squeeze." However, short squeezes are very rare. For a struggling stock to rise significantly, there needs to be some sort of black swan event, such as unexpected revenue, a buyout offer from a third party, or some other major development. If retail investors want to beat hedge funds, they must unite and hold with diamond hands. Otherwise, in the end, it will all be for nothing.