The GameStop short squeeze (January 2021)

Process map by Brian. 20 steps, 2 layers. Tags: finance, viral, controversy, news.

1. Short sellers: Bet that a company will fail: borrow shares and sell them
2. Short sellers: Plan to buy them back cheaper and keep the difference
3. Retail traders: People online argue the stock is undervalued and heavily shorted
4. Retail traders: Buy shares and call options in huge numbers
5. The stock market: The price starts rising
6. Short sellers: Losses grow. Can they afford to wait?
7. Short sellers: Hold and hope it falls
8. Short sellers: Forced to buy shares back to close the position
9. The stock market: Their buying pushes the price even higher: the squeeze
10. Brokerage apps: Brokers hit collateral limits and restrict buying
11. Retail traders: Outrage: "they stopped us buying"
12. The stock market: The price drops sharply
13. Regulators and Congress: Hearings and reviews of how markets and brokers work
14. Regulators and Congress: Questions remain: short selling, settlement times, payment for order flow

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