Action in the stock market has become extremely reckless with sensational rallies in sectors such as in Bitcoin as well as in some rigged short squeezes in individual “old” stocks such as GameStop. Bitcoin from its trading start in 2015 at $216 soared to $63,000, which in percent gain and overall size is likely without precedent. Also, it is not a company. As a stock, GameStop has been around for a long time with operations not all that strong. Hedge funds that were short (sold stock they didn’t own) were caught offside in a massive rigging that drove the stock from $2.57 in less than a year to $483 in February.
In a short squeeze those who have sold stock they don’t own must buy it back. Thereby joining the buying mania.
Both involved very bold stock market operators and both have sold off hard. Bitcoin to $37,000, which put all the buyers since February at a loss. GameStop plunged to $39.
