Disheartenment struck GameStop enthusiasts last September when the company reported a second-quarter loss greater than anticipated, coupled with a dip in market value exceeding 11 percent.
Nonetheless, a group of optimists are convinced that GameStop shares are poised for a meteoric rise, potentially skyrocketing to thousands or even millions of dollars per share. Among them is Ben Wehrman, a 27-year-old from California who sells Teslas by day and investigated supposed schemes by Wall Street to depress the prices of GameStop shares.
By December 2021, Wehrman had completed a comprehensive 16,000-word exposé encapsulating the seismic GameStop saga that rattled Wall Street.
January 2021 saw an unprecedented surge in GameStop’s shares.
Wehrman posits that short-sellers at hedge funds have been concealing an immense volume of negative bets placed against the stock. His theory suggests that persistent stockholding by retail traders and individual investors could corner these short sellers, leading to a windfall for those gripping their GameStop shares.
In January of the previous year, GameStop stocks were catapulted to an astonishing increase of over 1,700 percent from December figures. While financial gurus and fund managers wagered on the stock’s demise, individual traders decided to give Wall Street titans a run for their money. Amidst the pandemic, a wave of Americans turned to stock trading as a means to financial gain.
Debunking Myths and Doubts
The United States Securities and Exchange Commission issued a report in October last year addressing social media-fueled conspiracy theories, which spurred traders to challenge Wall Street powerhouses. While the agency acknowledged that most hedge funds managed to sidestep the GameStop frenzy unscathed, it could not conclusively unravel their buying patterns or intentions.
Conspiracy notions often gain momentum during uncertain times. The GameStop episode provided a snapshot into the financial realm where the small-scale investor suspects a rigged game against their favor. The term ‘Mother of All Short Squeezes’ (MOASS) emerged from this sentiment, a scenario where die-hard GameStop advocates envision the stock’s value soaring into the millions, tipping the scales against the financial elite.
Wehrman, with 80 percent of his investment tied to GameStop, strategically awaits the expected squeeze to unlock funds for global travel.
To other investors, the notion of MOASS transcends wealth – it represents a fight for market fairness.
Despite a 31 percent decline in GameStop’s share price this year, many investors remain steadfast, buoyed by the communal belief in enduring. They criticize the ‘naked shorting’ practice where stocks are short sold without the prerequisite of borrowing or ascertaining availability, a tactic they feel has victimized companies like GameStop and AMC.
MOASS enthusiasts, after scrutinizing reams of data, seeking expert guidance, and examining historical transactions, indict large financial entities for disseminating disinformation and fostering rampant profit-making.
Mohammad Hormozzadeh, a 31-year-old day trader from Brooklyn, officially recorded his GameStop stakes, projecting the great short squeeze to unravel later in the year. His hypothesis suggests that mass direct registration will inevitably trigger the phenomenon, cornering the short sellers.
The cadre of individual investors holds firm to their shares, believing steadfastly that their moment of prosperity is on the horizon, granting them access to a life once out of reach.
