What was GME Short Interest When It Squeezed?
The squeeze on GameStop (GME) shares in early 2021 became one of the most remarkable events in the history of the stock market. The surge in short interest and the subsequent rally of the stock caught the attention of investors and traders worldwide. This article delves into the question: What was GME short interest when it squeezed?
To understand the magnitude of the squeeze, it is essential to look at the short interest data. Short interest refers to the number of shares that investors have sold short but have not yet covered. It is a measure of bearish sentiment towards a stock. When short interest is high, it suggests that a significant number of investors expect the stock to decline in value.
In the case of GameStop, the short interest reached an unprecedented level as the squeeze began. According to data from S3 Partners, a financial analytics firm, the short interest in GME topped 140 million shares on January 21, 2021. This figure represented approximately 20% of the company’s total outstanding shares. At that time, the short interest in GME was already double the level seen just a few months earlier.
The squeeze on GME began when a group of retail investors, organized on platforms like Reddit, started to support the stock. They believed that the bearish sentiment towards GME was overblown and that the company had potential. As the retail investors bought more shares, the stock price began to rise, causing a squeeze on the short sellers.
The squeeze intensified as the stock price continued to climb. Short sellers had to cover their positions by buying back shares at higher prices, which further pushed up the stock price. This cycle of buying and covering created a self-reinforcing loop that propelled GME’s share price to astronomical levels.
At its peak, on January 28, 2021, GME’s share price reached an all-time high of $483.00. The stock’s market capitalization surged to over $30 billion, making it one of the most valuable companies in the world. During this period, the short interest in GME skyrocketed to an estimated 200 million shares.
The squeeze on GME had far-reaching implications for the stock market and the investment community. It highlighted the power of retail investors in the modern era, as well as the limitations of traditional Wall Street strategies. The event sparked discussions about market manipulation, regulatory oversight, and the role of social media in shaping market movements.
In conclusion, the short interest in GameStop reached a record high of 140 million shares when the squeeze began. As the stock price soared, the short interest continued to rise, peaking at an estimated 200 million shares. The GME squeeze serves as a testament to the volatility and unpredictability of the stock market, as well as the growing influence of retail investors.
