By Matt HowertonCheck out one of the best explanations of the run on GameStop’s stock on the internet, courtesy of Mike Slater who expertly broke down the situation.
It is estimated that for every $12 the stock went up, hedge funds lost one billion dollars leading one such firm to lose all of their $13 billion, he explained.
“The hedge funds got so greedy that they did something called naked shorting… someone there noticed how over-exposed these hedge funds were.”