The Whole Messy, Ridiculous GameStop Saga in One Sentence
If you want it in a sentence, I guess it goes something like this: The GameStop saga is a ludicrous stock mania born of pandemic boredom and FOMO, piggybacking off of a clever Reddit revenge plot, which targeted hedge funds, who made a reckless bet on a struggling retailer—and it’s going to end with lots of people losing incredible amounts of money.
Got that? Maybe not. So let’s start at the beginning.
This week, the sleepy video-game retailer GameStop went on the ride of its life. The company’s stock rocketed from about $40 to almost $400 in a matter of days, minting day-trader millionaires and extinguishing billions of dollars of bets against the firm placed by institutional investors. Then, this morning, GameStop trading was on the Robinhood platform, where of all users hold shares in the company. The stock lost three-quarters of its value in 85
