Louis Rossmann has made a number of videos regarding this. The shorts are going to eat their shorts.
I'd like to know what GameStop is doing with all the money
Unless it's an IPO, the company normally doesn't make any money from the sale of stocks. It's a transaction between two traders that doesn't involve the company.
Crying all the way to the bank.
Looks like they just did: .
Melvin Capital and Citron Capital closed out of their short positions on GameStop Corp. as the firms succumbed to the stock’s meteoric ascent.
Melvin Capital closed its position after repositioning its portfolio, according to a spokesperson. Citron Capital’s Andrew Left also said Wednesday that the firm covered the majority of its GameStop short bets at “a loss of 100%” in a YouTube video.
When you short something, your losses are potentially unbounded because you have to buy back the thing you initially sold, at whatever price it's now at.
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