We’ve all seen (or been in!) those wild forum battles—bulls pumping, bears dumping, and everyone slinging creative insults.
Here’s my homage to classic market drama, pulp-comic style.
What is a Short Squeeze?
If you’ve spent time on stock market forums, you know the heated battles between bullish optimists and bearish skeptics are the stuff of legend. One of the wildest outcomes in this tug-of-war is the short squeeze—a trading event that sends shockwaves through Wall Street and Main Street alike.
A short squeeze happens when a heavily shorted stock suddenly spikes in price, forcing short sellers to buy shares to cover their positions.
This buying fuels further price increases, sometimes creating meteoric moves that leave bulls cheering and bears scrambling for cover.
Why Do Short Squeezes Happen?
Margin Calls:
The result? Wild volatility, memes galore, and a few unforgettable trading days.
Timeline of Famous Short Squeezes
| Year | Stock/Ticker | Squeeze Catalyst | Outcome |
|---|---|---|---|
| 1901 | Northern Pacific | Railroad barons battle, shares cornered | Prices skyrocketed, triggered a market panic, quickly resolved |
| 1923 | Piggly Wiggly | Founder Clarence Saunders buys back stock to defeat shorts | Briefly beats shorts, forced to sell shares, company struggles |
| 2008 | Volkswagen (VWAGY) | Porsche’s takeover, share scarcity | Briefly world’s most valuable company; normalized afterward |
| 2008 | DryShips (DRYS) | Shipping sector rally, high shorting | Brief squeeze, eventual delisting |
| 2012 | Tesla (TSLA) | Positive news, squeezed short sellers | Launches decade-long rally, S&P 500 status |
| 2012-2014 | Herbalife (HLF) | Bill Ackman shorts, Icahn/retail squeeze | Price surged, Ackman exited short, company persists |
| 2019 | Beyond Meat (BYND) | High short interest, volatility post-IPO | Sharp squeezes, significant price swings, still listed |
| 2020-2021 | GameStop (GME) | r/WallStreetBets, massive retail buying | Iconic meme-stock, extreme volatility, still listed |
| 2021 | AMC Entertainment (AMC) | Meme stock rally, retail coordination | Huge squeeze, volatile since, still listed |
| 2021 | Koss Corporation (KOSS) | Meme momentum, thin float | Brief spike, normalized, still listed |
| 2021 | Blackberry (BB) | Meme-stock surge, coordinated buying | Brief rally, returned to prior trend |
| 2021 | Clover Health (CLOV) | Retail investor targeting, short interest | Brief squeeze, share price declined since |
| 2023 | Carvana (CVNA) | Short covering after positive earnings | Major rally, remains volatile, still listed |
| 2024 | Lumen Technologies (LUMN) | High short interest, surprise earnings | Huge squeeze, still volatile, still listed |
Where Are They Now?
- Northern Pacific: Dissolved after panic; a cautionary tale.
- Piggly Wiggly: Founder lost control; business survived but struggled.
- Volkswagen: Leading global carmaker; shares stable.
- DryShips: Delisted.
- Tesla: Tech juggernaut, major S&P 500 member.
- Herbalife: Still public, short interest much lower; Ackman exited his short.
- Beyond Meat: Public, shares far below highs but still traded.
- GameStop: Still listed, rebranding, lower volatility.
- AMC: Surviving, meme status, still volatile.
- Koss: Returned to obscurity after meme burst.
- Blackberry: Business shift to software, lower share price.
- Clover Health: Price dropped after squeeze, still listed.
- Carvana: Surged, but remains risky and volatile.
- Lumen Technologies: Still listed, remains speculative and closely watched by shorts.
Add These to Your Binge-Watching List: Movies & Series About Short Squeezes
Want to see the drama of bulls, bears, and market squeezes brought to life? Here are some must-watch films, series, and documentaries that capture the chaos, comedy, and consequences of legendary short squeezes:
1. Eat the Rich: The GameStop Saga (Netflix, 2022)
A wild docuseries chronicling the infamous 2021 GameStop short squeeze. Redditors, hedge funds, and meme magic collide in a story almost too crazy to believe.
2. Dumb Money (2023)
A Hollywood take on the GameStop frenzy, starring Paul Dano, Seth Rogen, Pete Davidson, and more. Watch as ordinary traders take on Wall Street’s biggest players in a battle for the ages.
3. Betting on Zero (2016)
This documentary covers the high-stakes war over Herbalife (HLF), following Bill Ackman’s billion-dollar short and the powerful counter-moves from Carl Icahn and retail investors.
4. The Big Short (2015)
While not a short squeeze story, this Oscar-winning film explains short-selling and market mayhem better than anything else—essential viewing for understanding market mechanics and Wall Street’s wild side.
5. Billions (Showtime, Series)
A high-stakes drama series set in the world of hedge funds, Billions frequently features trading warfare, including short squeezes and other high-risk Wall Street tactics. While the overall theme is power and finance, several episodes highlight the tension and strategy behind market squeezes.
Binge these titles for a crash course in market psychology, greed, and the internet’s surprising power to move the markets!
So, who wins in the end?
Sometimes it’s the bulls, sometimes the bears—but the market always has the last word.
What’s your favorite short squeeze story?
Seen any wild bear vs. bull showdowns online?
Drop your best forum comebacks—or share which side you’re on, bullish or bearish—in the comments below!
No comments:
Post a Comment