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This is not related to Gamestop as a company. This is about a instrument (GME) which was over leveraged short position, and is way out of balance. Doesn't matter what Melvin says, the short % is there for everybody to see and some one is still very short. Retail investors want to use the said instrument to legally make lot of money.

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Why is it "over leveraged"? What makes you think the stock is "out of balance"? The hype men will have you believe that there is some magic percentage or tipping point that makes it a good buy but it's pure bunk. If GME has any relationship to the company GameStop (which it does) the stock should be in the toilet and is very likely to go out of business soon, which makes a massive short position very reasonable.

Go read the current financial position yourself. The hedge funds still have to buy over 100% of the total amount of GME shares to cover their short positions. To do that they need to buy existing shares at current market value or they go bankrupt. Its a vicious cycle. Go look at previous short squeezes that have happened.

No. They don't HAVE to buy the stock. They don't need to cover their shorts. 100% isn't some magic number like you've been told.

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