GameStop & the Short Squeeze

An epic battle, played out in online forums and via equity trading apps, emerged between Hedge Funds, other Hedge Funds, and retail investors - the prize? The stock price of GameStop, a retailer of gaming products. Less than ten days later, Gamestop’s stock approaches normal, a hedge fund is wiped out, and maybe nothing has changed. Also, Elon Musk apparently has something to do with all this? Or at least he was talking about it a lot.

What the hell happened with Gamestop, Reddit, Robinhood and Melvin Capital, and why? And what does it all mean?

Guests:

Daniel Gill - Reporter, Bloomberg Law

Daniel’s Twitter

Megan Wilson - Reporter, Bloomberg Government

Megan’s Twitter

Episode Notes:

An outstanding overview of what happened with GameStop by the incomparable Alexis Goldstein (who has a Twitter account that you should follow)

Planet Money podcast - Episode 471: “The Eddie Murphy Rule” (explains short-selling in the context of what happens at the end of the movie Trading Places)

Show Notes:

Theme music by the mysterious Breakmaster Cylinder. Other music by the mysterious Breakmaster Cylinder, including “After These Messages“ and “Mr. Chompers” (under license).

Show branding by Peg Fitzpatrick & PMG Group.

P.R. and social media by Carol Lunger, Emily Stern and A B+C Creative.