Editing GameStop (section)

====January 2021 short squeeze====
{{main|GameStop short squeeze}}

In January 2021, trading activity around a [[short squeeze]] resulted in a 1,500% increase in GameStop's share price over the course of two weeks, reaching an all-time intraday high of over US$500.00. {{As of|2021|1|29|df=US}}, on the [[New York Stock Exchange]].<ref name="yun">{{Cite web |last=Li |first=Yun |date=January 27, 2021 |title=GameStop mania explained: How the Reddit retail trading crowd ran over Wall Street pros |url=https://www.cnbc.com/2021/01/27/gamestop-mania-explained-how-the-reddit-retail-trading-crowd-ran-over-wall-street-pros.html |access-date=January 27, 2021 |website=[[CNBC]] |archive-date=January 27, 2021 |archive-url=https://web.archive.org/web/20210127221220/https://www.cnbc.com/2021/01/27/gamestop-mania-explained-how-the-reddit-retail-trading-crowd-ran-over-wall-street-pros.html |url-status=live }}</ref><ref>{{Cite web |title=GAMESTOP CORPORATION (GME) |url=https://www.nyse.com/quote/XNYS:GME |access-date=January 28, 2021 |website=[[NYSE]] |archive-date=January 19, 2021 |archive-url=https://web.archive.org/web/20210119153914/https://www.nyse.com/quote/XNYS:GME |url-status=live }}</ref> This effect was mainly attributed to short sellers using illegal business practices causing the stock to be shorted over 100 percent of the free float of the company.

There is uncertainty around the size of the effect of short sellers closing their position. The SEC released a report claiming "While a short squeeze did not appear to be the main driver of events, and a gamma squeeze less likely, the episode highlights the role and potential impact of short selling and short covering."<ref>{{Cite web |title=U.S. Securities and Exchange Commission, "Staff Report on Equity and Options Market Structure Conditions in Early 2021," page 24 |url=https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf}}</ref>