Five Years After GameStop: What the Squeeze Actually Changed

Five Years After GameStop: What the Squeeze Actually Changed

In early 2021, a declining video game retailer unexpectedly became the epicenter of one of the most extraordinary episodes in modern financial history. GameStop saw its stock price surge from under twenty dollars to well over four hundred in a matter of days, propelled by an unusual combination of extreme short interest, coordinated retail buying, and feedback loops embedded in contemporary market structure. Hedge funds suffered dramatic losses,…