So, a hedge fun is basically making the claim that GME is a piece of crap company with no real future. So, it goes and borrows a bunch of stocks and sells them right away hoping that they can return the borrowed stocks at a lower price and keep the profit/difference. So, in short, they're banking on GME continuing to suck. Well, a bunch of angry redditers that grew up standing in line for Super Mario easter eggs ain't too happy that these hedge funders are betting against their former lover, Gamestop, So, they start buying a bunch of GME stock to raise the price. Well, word spreads, especially on CB that GME is hotter than a BYU coeds thighs and the stock price soars.
Well, those hedge fund folks still have to give back their borrowed GME stocks. So, in order to keep their commitment they have to purchase the stock at this elevated price, losing a crapload of money. In the meantime, all us mom and pop scrubs make a killing by buying GME stock on the upsurge and then sell...hopefully while it's peaked. Do I have this right?