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I followed GME maybe 6-7 years ago pretty closely and I recall it having crazy short interest vs float then as well. Am I wrong on that, or is there some reason
by voisin 6y ago
I followed GME maybe 6-7 years ago pretty closely and I recall it having crazy short interest vs float then as well. Am I wrong on that, or is there some reason why the short interest is no longer sustainable? I would think lower prevailing interest rates would help sustain the shorts.
- patleeman 6y agoI think its the combination of the extremely high number of short shares (71M) vs shares outstanding (69M), the stock hitting an all time low in March ($2.57), poor public sentiment ("its the next blockbuster"), and then the addition of Ryan Cohen (a "Rockstar" entrepreneur) all making for a really epic turn around underdog story.
- FishbowlPrime 6y agoBack then there was no Ryan Cohen or WSB. Shorts don’t control the narrative anymore. They had the chance to cover at $3-4 (at a significant profit) last year, but they were too greedy and wanted the stock to go to $0 and see GME file for bankruptcy. The interest rate to borrow GME shares has little to do with the Fed rates. It actually hit 45% last week as there are almost no more GME shares available to borrow. Shorts are bleeding about 2% every day just on interest and have little road left to run.