Back in mid-2020, GameStop (GME) was sitting at all-time lows, forced lower with massive short positions by perennial juggernaut hedge funds. With over 140% of shares short, it was a prime candidate for the mother of all short squeezes. As word on social media sites spread like wildfire, the short squeeze started, ultimately leading to a gamma squeeze, pushing GameStop’s share price up nearly 19,000% in a little over 9 months. Since then, there has been an 84% pullback off the highs, prompting many to speculate a value play at current levels, and they may not be wrong.
