Shares in video game retailer GameStop increased by 93% yesterday, extending a historic run driven in part by retail investors betting against short positions taken by institutional investors. The so-called “short-squeeze” (initially popularized in the Reddit forum “r/WallStreetBets”) has caused the company’s share price to increase by nearly 300% since last Wednesday, despite no material changes to the underlying business over the same period.
More context: Here’s an explainer on short squeezes.
The New Paper
This story is from the January 27, 2021 edition of The New Paper – a clear, concise daily briefing that makes fact-first news easy to consume. Try it today.
