Comment Not what is happening (Score 1) 148
We need to be honest about what is happening.
Hedge Fund Short sellers sold Gamestop short, and published damaging reports on it. Retail investors realized there was a giant sized short squeeze going on, due to a number of hedge funds mispricing for example Gamestop. Gamestop's prospects are much better than previously though, due to new gaming platforms.
Retail investors piled onto a few stocks, realizing that because of the short squeeze, they could hurt short sellers and make potentially ludicrous profits. Also, they realized that many of the short sellers were deliberately posting negative reports, to depress stock prices and create buying opportunities for themselves. Then they'd buy at low points, and produce new price targets with fat profits ensured for themselves.
Speculation about price is what the stock market is all about, as a part of price discovery. You see this speculation with outsized call volume mainly.
I don't think we should be bailing out these hedge funds by putting stops on trading or limiting options activity, which counteracts the short selling naysayers. If someone wants to buy a call that is a potential one-way bet with a potential return of 5000% and a set cost, that is their own decision. No one forced these short sellers to take negative bets.