There is simply a supply shortage of GameStop stock at the moment. There are no massive hedge funds that took huge positions before the price started rocketing

There is simply a supply shortage of GameStop stock at the moment. There are no massive hedge funds that took huge positions before the price started rocketing up. Maybe some smaller prop shops with sentiment based strats, but this is mostly retail volume, now being reigned in by market makers. Obviously the smart, patient, and principled retail traders will do better than the uninformed and emotional when all is said and done and the price stabilizes near realistic levels. That is just how markets work. They are not perfect, but allow us to asymptotically approach pricing perfection to the degree that available information is perfect, in the long term. Such phenomenons are much less volatile on larger market cap components of the economy where the big funds can aid in price discovery.