Explain the GameStop short squeeze?

[Andy_L]

Previous thread about short sales

Confused about the profit generated from a short sale of shares

Hi, I usually think of making a profit when I own something that I have bought cheaply and sell at a higher price than I originally bought it for. I can’t see the connection with the following transaction. I don’t understand where the profit comes from. The broker borrows the stock for me to trade with using my margin account as collateral (correct?). So the price of a share goes down from $ 65 ( $6,500 for the shares. This is where I’m confused. I don’t own the stock. I’m just borrowing it to…