What Traders Need To Know About GameStop And Naked Short Selling
Melanie Schaffer, 03 June 2021
This week and last, AMC was targeted again and its shares skyrocketed 496% between May 24 and June 2 before retracing Thursday.
What Happened: The squeeze in GameStop was caused by retail and institutional traders rushing into the stock, and some hedge funds covering their short positions, which drove the price up to astronomical levels. Robinhood and a number of other brokers then restricted trading and caused an illiquidity event that dropped its stock down almost 90% over the following nine days. Continue reading “Article: What Traders Need To Know About GameStop And Naked Short Selling”