The speculative trading left short sellers with no more shares to buy to cover their positions, creating a short squeeze and leaving them with millions of dollars in stocks they had bought at a high price but which they then had to offload at an even higher price. In the case of GameStop, chatter on massive online trading forums invigorated interest in buying the stock, pushing up the price, which in turn fueled more interest. ![]() ![]() Any positive news or enthusiasm for the stock will push up the stock's valuation, minimizing profit for the short seller. Because short sellers - frequently hedge funds - in essence are betting against a company's success, it can be a risky position.
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