# GameStop short squeeze
**URL:** https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281
**Category:** Investing / Brokers
**Created:** [January 17, 2021, 11:46am UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281 "2021-01-17T11:46:09Z")
**Posts on this page:** 20
**Page:** 6
### Author:  [@nabalzbhf](https://forum.mustachianpost.com/u/nabalzbhf)
#### Post date: [January 27, 2021, 12:35pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/102 "2021-01-27T12:35:20Z")
A pump and dump will always hurt short sellers on the way up, by definition, right? š
AFAIK there hasnāt been a short squeeze yet (short sellers are still able to borrow shares) and itās unsure if it will happen (and GME can always sell more shares as well esp if they think theyāre overvalued).
Edit: anyway sounds fun, just make sure you understand what youāre going into.
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### Author:  [@arthur](https://forum.mustachianpost.com/u/arthur)
#### Post date: [January 27, 2021, 12:38pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/103 "2021-01-27T12:38:29Z")
> [@nabalzbhf](#):
>
> make sure you understand
rest assured, i have zero idea what i am doing.
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### Author:  [@clon](https://forum.mustachianpost.com/u/clon)
#### Post date: [January 27, 2021, 12:40pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/104 "2021-01-27T12:40:49Z")
> [@nabalzbhf](#):
>
> A pump and dump will always hurt short sellers on the way up, by definition, right?
fully agree, but the magnitude in such a scenario is different if 20% of floating shares are shorted or 140%ā¦ and there were definitely (early) short sellers āsqueezedā out of their position IMHO - but new ones are stepping in, keeping the short-ratio +/- the sameā¦
edit: š š š
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### Author:  [@nabalzbhf](https://forum.mustachianpost.com/u/nabalzbhf)
#### Post date: [January 27, 2021, 12:53pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/105 "2021-01-27T12:53:06Z")
I wonder how many hedge funds are trading the momentum and printing money too š
(in addition to the market makers taking their fees)
I wouldnāt be surprised if thereās a few funds who have automated momentum trading from wsb data š
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### Author:  [@britbanker](https://forum.mustachianpost.com/u/britbanker)
#### Post date: [January 27, 2021, 12:58pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/106 "2021-01-27T12:58:19Z")
For sure they are - this thread was an interesting [read](https://twitter.com/toxic/status/1353890766800621569?s=20)
Its a fascinating case of game theory and market structure - who is going to blink first? Undoubtedly a lot of retail investors are going to get hurt, which is why its important they only participate in things like this with play money.
Iāve never done anything like this before - you can read my other thread where I simply buy and hold index funds - but the FOMO was real on this one and I succumbed haha.
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### Author:  [@nabalzbhf](https://forum.mustachianpost.com/u/nabalzbhf)
#### Post date: [January 27, 2021, 1:04pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/107 "2021-01-27T13:04:13Z")
> [@britbanker](#):
>
> For sure they are - this thread was an interesting [read](https://twitter.com/toxic/status/1353890766800621569?s=20)
afaik that thread if full of mistake: [https://twitter.com/matt\_levine/status/1354131557360021505](https://twitter.com/matt_levine/status/1354131557360021505)
(this is Matt Levineās area of expertise, while the original thread is from a tech person?)
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### Author:  [@SwissTeslaBull](https://forum.mustachianpost.com/u/SwissTeslaBull)
#### Post date: [January 27, 2021, 1:52pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/108 "2021-01-27T13:52:13Z")
250%?
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### Author:  [@clon](https://forum.mustachianpost.com/u/clon)
#### Post date: [January 27, 2021, 1:53pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/109 "2021-01-27T13:53:16Z")
ā¦ those are rookie numbers! š š
edit: š š š
edit 2: WTF!? 380%
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### Author:  [@clon](https://forum.mustachianpost.com/u/clon)
#### Post date: [January 27, 2021, 2:02pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/110 "2021-01-27T14:02:23Z")
ā¦ and regarding AMC: The eow 9C option traded at 0.18 yesterday evening - now those are ~8$ deep ITM! Thatās a 44-fold in a few hours š
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### Author:  [@Zerte2](https://forum.mustachianpost.com/u/Zerte2)
#### Post date: [January 27, 2021, 2:30pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/111 "2021-01-27T14:30:42Z")
> [@arthur](#):
>
> What are your positions btw?
Zero. But itās lots of fun to watch.
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### Author:  [@arthur](https://forum.mustachianpost.com/u/arthur)
#### Post date: [January 27, 2021, 2:40pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/112 "2021-01-27T14:40:09Z")
It is kind of fun to watch: GME is bringing literally bringing part of the internet to its limits rn.
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### Author:  [@nabalzbhf](https://forum.mustachianpost.com/u/nabalzbhf)
#### Post date: [January 27, 2021, 2:54pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/114 "2021-01-27T14:54:05Z")
> [@TeaCup](#):
>
> But given the massive amounts of money that flow into thisā¦
Is there actually a lot of money? I thought that was massively leveraged
> [@TeaCup](#):
>
> What do you think will regulators do with this? Block short selling for a while?
Restrict retail access to leveraged trading?
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### Author:  [@baldur](https://forum.mustachianpost.com/u/baldur)
#### Post date: [January 27, 2021, 2:57pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/115 "2021-01-27T14:57:21Z")
> [@TeaCup](#):
>
> I fear that this could have side-effects that eventually even effect us as Index Investors - even if our ETFs donāt include that shareā¦
It came to my mind tooā¦as a final act before āeverything growsā bubble burstsā¦
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### Author:  [@ma0](https://forum.mustachianpost.com/u/ma0)
#### Post date: [January 27, 2021, 3:19pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/117 "2021-01-27T15:19:57Z")
If an ETF can lend securities, they might lend them to Melvin, right? If then Melvin go bust, the ETF might have some issues as well.
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### Author:  [@nabalzbhf](https://forum.mustachianpost.com/u/nabalzbhf)
#### Post date: [January 27, 2021, 3:23pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/118 "2021-01-27T15:23:32Z")
> [@TeaCup](#):
>
> We donāt know yet but if things go belly off, this puts a major player under the Busā¦ and that major player could cause our 2021 Lehman Moment.
But itās only like 20B traded daily? Doesnāt seem like much (comparatively), and I donāt think thereās any systemic risk, what kind of thing do you envision?
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### Author:  [@Myfirstme](https://forum.mustachianpost.com/u/Myfirstme)
#### Post date: [January 27, 2021, 3:37pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/120 "2021-01-27T15:37:30Z")
I donāt usually follow my portfolio daily, so I could be wrong, but today seems a bit crazy in general. VT is down 2%. My worst performing stock is down 6%. My best performing stock is up 15% (and no, not related to the short squeeze craze, still not pulled the trigger to join the melee).
A possible systemic danger: If the shortsellers lose massively and have to liquidate other assets to cover those losses, they might liquidate otherwise solid stocks. If that happens on a large enough scale, with the market very jittery in general, this might be the spark to start a general sell-off.
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### Author:  [@britbanker](https://forum.mustachianpost.com/u/britbanker)
#### Post date: [January 27, 2021, 3:41pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/122 "2021-01-27T15:41:45Z")
Great - if what you say does happen - then I think people should adjust their asset allocation accordingly and keep some powder dry to buy the dips.
For those that missed out last March - there might be another opportunity to scale into the market at a lower valuation.
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### Author:  [@Myfirstme](https://forum.mustachianpost.com/u/Myfirstme)
#### Post date: [January 27, 2021, 3:43pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/123 "2021-01-27T15:43:45Z")
> [@TeaCup](#):
>
> Exactly, nice summary
Thanks. Just saw, you had the same thoughts. Itās not that far fetched an idea thenā¦ Oh boy, just when I was getting accustomed to have nice monthly capital gainsā¦
EDIT:
> [@britbanker](#):
>
> For those that missed out last March - there might be another opportunity to scale into the market at a lower valuation.
Yes. Now what to spend my dry powder on? GME this week? Or speculate for a dip and buy that later? This is not getting easier š
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### Author:  [@LeStache](https://forum.mustachianpost.com/u/LeStache)
#### Post date: [January 27, 2021, 4:08pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/124 "2021-01-27T16:08:29Z")
> [@Myfirstme](#):
>
> Now what to spend my dry powder on? GME this week? Or speculate for a dip and buy that later? This is not getting easier š
Imho the rocket has already launched for GME. Iām in the process of unwinding. I left a small position strapped to the rocket in case it goes to Mars on Friday. In other words: Iām playing with house money now and wouldnāt recommend anyone touching anything except the sell button. Let history prove me wrong.
I would welcome a general dip with open arms. Iām still bummed about sleeping in March and I have a lot of cash.
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### Author:  [@ma0](https://forum.mustachianpost.com/u/ma0)
#### Post date: [January 27, 2021, 4:12pm UTC](https://forum.mustachianpost.com/t/gamestop-short-squeeze/5281/125 "2021-01-27T16:12:43Z")
Meanwhile yahoo talk about a āFed decisionā.
I wonder if even this time the Fed will bail out whoever is in needs.
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