monday morning rolls aroundand my friend, theo, he messaged me like,hey, man, i don t think gamestop isgoing to do anything more. i don t think anything sgoing to hire. i m just going to sell.i was like, don t sell, dude. you re an idiot.like don t sell. what the hell is wrongwith you? and he sold. literally, 10 minutes later,it starts going. reporter: stock for gamestopis up dramatically. reporter: it s been justswinging wildly. alvan chow:the week of the squeeze, i was describing itto my girlfriend as like i m in the nba finalsright now. i have to belike on all cylinders. like when i have to execute is probably the mostimportant week of my life. - i got my stimulus. [laughs] so i started throwingmy stimulus in it, and i m feeling cute,you know. then i mwatching the numbers and it just keeps,and i m like, huh. maybe this is something. reporter: gamestop is knownas the world s largest video game retailer. reporter:the stock is now at the center of a davidversus goliath story. shares ha
and unfortunately, you know,it was one of those situations that whenthe stock went down, it kind of stayed down, right? and literally,it was getting so caught up in it and then getting so stuck inthat diamond hands mentality, like don t sell anything.and that s really what was essentially almostlike the beginning of the end, i guess you could say - [shuffling]
reporter: let s talk aboutanother company, jim, and that s gamestop.is it too late for gamestop? jim cramer:i hate these guys. i ve hated themfor a long time. can gamestop fail?i think it can. i think it canfall that much, and i wouldn t be around there trying to makesome money with it. matt kelly:i m really starting to doubt myself.i m really starting to doubt what i believedwas going to happen, and theprice is falling. - in the middle of january,my $30,000 investment had dropped downto around $5,000. it went down a lot, likebasically to $0. - there are a lot of people that are very bullishon this stock, and the idea is thatit s a turnaround play. - there are a lot of peoplethat were bullish about the housing marketin 2006, 2007. there were a lot of peoplethat were bullish about, you know, tulips backin the 1600s. i mean, just because alvan chow: i thought i wasjust going to lose it all and just have to start overand keep [laughs]
like it makes sense that they re goingout of business, but they seemto be making some plays. alvan chow:and then i just noticed this extremelyastounding figure, the 140%short interest figure. sir jackalot: 140% shortinterest ratio on one stock. that means there are moreshorts than shares that exist. [laughs] all the shares outstanding for the companywere basically shorted, which is absurdand unprecedented. alvan chow:so i tried to look for a historical precedenton what would happen if somethingwas over 100% shorted, but there was nothing. stock expert:when you sell stocks short, you re betting that the marketis going to go down. and if you re wrong,the stock can go up against youvery sharply, and you have to close thatposition, usually at a loss. so you can see guyson wallstreetbets who knew what they were doing. these guys are smart.they understand, ok, we can get leverageon this thing, right?
i know that if we gathertogether, there s a point here at whichwe can really push against hedge funds enoughto force them to cover. we can force the market. we can forcethis stock higher. - all these short sellersbuying back their position drives the stock higher and squeezing outall the short players from the market.that s a short squeeze. - you ve got to bereally greedy to keep shorting gamestop when it was at like $6a share or something. because that means if you reshorting at $6 a share, you re only profitingif it goes below $6. it was a post by jeffamazon, where he kind of laid outthe gamestop thesis. - i wrote this post called the greatest short burnof the century. my brother, who s an actor,is going to come