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Many reddit users gained significant amounts of money from this short squeeze

There were stories of different kids winning crazy amount of money. For example, a 10 year old year old got a 5000% on his moms original investment in Gamestop. He bought bought 10 shares each worth at $6.19. During that week, that investment paid off big time, when his $60 stake in retailer grew up to $3200. - WSB and other investors focusing on other stocks like AMC, etc. Now that GameStop is the center of attention, WSB is shifting its focus on other stocks like AMC, and Dodgecoin to drive up the prices so they can more opportunities to win some big cash. - New investors will follow along, join market, and potentially win big Since this news was everywhere, many people who don’t even trade stocks decided to come trade due to constant news from stock market. With such a big news coming from the market, any normal person would want to come on and make money the reliable way. Threats -

Melvin Capital and other hedge funds will pay up billions of dollars

Since Melvin shorted the stock, they will need to pay back lots of money to their lenders since the stock prices have gone up. This will be hard to do since every time the prices go up, they will just owe even more money to their lenders.

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Risk of losing money due to expectation of winning huge amounts of money Not just hedge funds but normal people who think they can win money can be jeopardized since they have such high confidence. This ends up being bad as they might lose thousands resulting financial problems....