When I say that “the zoo has gone nuts,” I mean, “literally,” as in scientifically proven and peer-reviewed. But what an incredible show it is. Why exactly the zoo has gone nuts is still up for debate, but the Fed with its $3 trillion of printed money in three months has a prominent position in this discussion.
The shares of GameStop [GME], however, one of the most shorted stocks in the universe, performed a miracle: First, they wiped out the early short sellers in an astounding short squeeze engineered by traders ganging up on those short sellers on the social media; and then, the shares whipped around and wiped out those very traders that had gotten in late and had gotten caught in a classic pump-and-dump by those traders that had gotten in early.
And hedge funds are on both sides of the trade, and they too are reading — or machine reading — the trading mania in the social media and trade with it or against it, thereby accelerating the moves.After Skyrocketing in Majestic Short Squeeze, GameStop Shares Collapse 54% in Hours: The Zoo Has Gone Nuts | Wolf Street