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Yes, the System Is Rigged — But It Can Get a Lot Worse
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The System Is Rigged - Episode 4537: Game Stop Corp
Early this week a few amateur stock trading nerds decided to promote a stock that was heavily shorted by certain hedge funds. The idea was to raise the stock price of Game Stop Corp., a vendor for computer games, by having lots of small stock traders to buy into it. The hedge fund that shorted the stock, and thereby bet on a dropping stock price, would then make huge losses while the many small buyers would potentially profit.