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The original was posted on /r/gmecanada by /u/Resologist on 2023-10-05 10:13:43.

On another forum, yesterday’s rise in price suggested the short-selling attack was finished. I doubt that.

The massive short-selling began with the news that Ryan Cohen was elected as CEO. The share price went up to $18.89 (in after-hours trading, before retail could act). Since then, 10,354,362 shares have been reported as sold short; and, the share price dropped as low as $14.44, (a 23.5% decline). Bad news? Not from GameStop. The pattern of dumping a ton of shares at the start of the trading day and at the close was done by short-selling to suppress the price: to dissuade new investors, (who are learning about GameStop from the “Dumb Money” movie). A new tactic is showing: over 3 million shares available to borrow for short-selling, (now, 2.7 million, at 2.355% cost with a 2.965% rebate), thus, enlist others to short-sell GameStop. This is now being promoted as a strategy for a market crash by Hashtag Investing, (“Hashtag Investing is a fast growing high quality community of stock investors and traders. Offering quality content, research, analysis…”). Are they explaining its risks? Not much, (just “substantial”).

“Short selling is a strategy where a trader profits from a declining market by selling a borrowed asset to repurchase it at a lower price. In a market crash, stocks often plummet, making short selling a lucrative option. Swing Traders need to look for stocks that show clear signs of weakness, such as breakdowns in technical patterns or deteriorating fundamentals. Also, they should be cautious as short selling carries significant risks, and losses can be substantial if the market rebounds unexpectedly.”

Wall Street is looking for more “Dumb Money” to help short Gamestop.