TL;DR

The GameStop stock hype is back, promising another short squeeze. It’s a dangerous gamble, with retail investors likely to lose money chasing a repeat of past gains. The lesson? Don’t trust the hype.

Story

Another day, another pump-and-dump scheme. This time, it’s GameStop, the stock that became a meme, and its latest surge is just another episode in the ongoing saga of retail investor gullibility.

How it happened: It’s simple: hype. Social media whipped up a frenzy, fueled by promises of another massive short squeeze—a scenario where a heavily shorted stock skyrockets as short-sellers scramble to cover their positions. Think of it as a digital version of a chain letter, where everyone expects the next person to pay, until the chain inevitably breaks. The hope was that this collective delusion would boost the price.

Human impact: The small investors who bought in hoping for a quick profit are the ones who are most likely to get hurt. They are chasing the past glory without analyzing the present. Their losses might amount to their savings or even their house if they leveraged their finances.

Lessons: Don’t trust hype. Never invest in something based on internet memes or the promises of anonymous users. Remember Enron, the dot-com bubble, and the 2008 financial crisis—all driven by irrational exuberance and the belief that this time is different. It never is. Do your own research and don’t put money into something you don’t understand.

Conclusion: History repeats itself. The current situation is a microcosm of every speculative bubble in history: artificial inflation, followed by a painful crash. The cycle continues, preying on those seduced by easy money and internet hype.

Advice

Ignore the hype and do your research before investing. Remember that past performance is not indicative of future results.

Source

https://www.reddit.com/r/wallstreetbets/comments/1kt0ccp/were_so_fucking_back/