Here is a YOLO story, a story of utter nihilism. You know this
story. This story is perhaps best told with a series of rocket
emojis, but let’s try words instead. The people on the
WallStreetBets subreddit sometimes all get into a stock at once.
This is fun, a nice social outing in an age of social
distancing, a risky but potentially lucrative collective
entertainment. Recently they decided to do GameStop. Because, I
don’t know, they’re gamers, or because it’s a little comical to
pump the stock of a chain of mall video-game stores during a
pandemic, or because a lot of professional investors are short
GameStop and they thought it’d be funny to mess with them. Or,
especially, because their friends on Reddit were buying GameStop
and they figured they’d join in the fun. Or all of those things in
different combinations. Take one person who’s long for fundamental
reasons, add 100 people who are long for personal-amusement
reasons like “lol gaming” or “let’s mess with the shorts,” and
then add thousands more who are long because they see everyone
else long, and the stock moves.
As good an explanation of what the hell is going on with GameStop’s stock as you’ll find, I think.