Meme Stocks and Breaking Down Short Squeezes

Backdrop:


Meme stocks and Reddit’s Wall Street Bets have been behind some massive, short squeezes thus far in 2021. GameStop (GME) and AMC Entertainment (AMC) have been the most notable battleground stocks between the hedge fund managers and retail traders. Hedge fund managers that have short positions on a stock profit when the stock declines. Retail traders on the other hand identify heavily shorted stocks and buy the stock with the intention to short squeeze these hedge funds and cause a dramatic rise in th