GameStop Short Squeeze: Difference between revisions
Added archive URLs for 8 citation(s) using CRWCitationBot |
m Moved StubNotice to its own line above cargo to prevent future wiki editors from encountering the annoying "you can't do that" error. |
||
| (One intermediate revision by one other user not shown) | |||
| Line 1: | Line 1: | ||
{{StubNotice}} | |||
{{IncidentCargo | {{IncidentCargo | ||
|Company=Citadel Securities, Robinhood Financial | |Company=Citadel Securities, Robinhood Financial | ||
| Line 10: | Line 11: | ||
|Description= | |Description= | ||
}} | }} | ||
The '''GameStop short squeeze''' of early 2021 was one of the most dramatic financial events in recent history, pitting retail investors against Wall Street hedge funds and exposing deep tensions in market structures.<ref>{{Cite web |title=GameStop short squeeze |url=https://en.wikipedia.org/wiki/GameStop_short_squeeze |website=wikipedia.com |archive-url=http://web.archive.org/web/20260215155355/https://en.wikipedia.org/wiki/GameStop_short_squeeze |archive-date=15 Feb 2026}}</ref> | The '''GameStop short squeeze''' of early 2021 was one of the most dramatic financial events in recent history, pitting retail investors against Wall Street hedge funds and exposing deep tensions in market structures.<ref>{{Cite web |title=GameStop short squeeze |url=https://en.wikipedia.org/wiki/GameStop_short_squeeze |website=wikipedia.com |archive-url=http://web.archive.org/web/20260215155355/https://en.wikipedia.org/wiki/GameStop_short_squeeze |archive-date=15 Feb 2026}}</ref> | ||
==Background== | ==Background== | ||
=== | ===GameStop's struggles and short interest=== | ||
GameStop, a brick-and-mortar video game retailer, had been struggling due to competition from digital game sales and the COVID-19 pandemic’s impact on in-person shopping. By 2020, institutional investors heavily shorted the stock, betting its price would fall further. At its peak, 140% of GameStop’s public float was sold short, meaning some shares were borrowed and shorted multiple times.<ref name=":0">{{Cite web |last=Dziak |first=Mark |date=2024 |title=GameStop short squeeze |url=https://www.ebsco.com/research-starters/business-and-management/gamestop-short-squeeze |website=EBSCO.com |archive-url=http://web.archive.org/web/20260107035353/https://www.ebsco.com/research-starters/business-and-management/gamestop-short-squeeze |archive-date=7 Jan 2026}}</ref> | GameStop, a brick-and-mortar video game retailer, had been struggling due to competition from digital game sales and the COVID-19 pandemic’s impact on in-person shopping. By 2020, institutional investors heavily shorted the stock, betting its price would fall further. At its peak, 140% of GameStop’s public float was sold short, meaning some shares were borrowed and shorted multiple times.<ref name=":0">{{Cite web |last=Dziak |first=Mark |date=2024 |title=GameStop short squeeze |url=https://www.ebsco.com/research-starters/business-and-management/gamestop-short-squeeze |website=EBSCO.com |archive-url=http://web.archive.org/web/20260107035353/https://www.ebsco.com/research-starters/business-and-management/gamestop-short-squeeze |archive-date=7 Jan 2026}}</ref> | ||