Hacker News Reader

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.

View on HN

Back 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.

I 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.

Reply on news.ycombinator.com