# Explain the GameStop short squeeze?

**URL:** <https://boards.straightdope.com/t/explain-the-gamestop-short-squeeze/931681>\
**Category:** Factual Questions\
**Created:** [January 28, 2021, 11:04am UTC](https://boards.straightdope.com/t/explain-the-gamestop-short-squeeze/931681 "2021-01-28T11:04:54Z")\
**Posts on this page:** 1\
**Showing post:** 17

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**Author:** ![Andy\_L](https://avatars.discourse-cdn.com/v4/letter/a/c67d28/32.png) [@Andy\_L](https://boards.straightdope.com/u/Andy_L)\
**Post date:** [January 28, 2021, 3:17pm UTC](https://boards.straightdope.com/t/explain-the-gamestop-short-squeeze/931681/17 "2021-01-28T15:17:16Z")

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Previous thread about short sales

> [@Confused about the profit generated from a short sale of shares](https://boards.straightdope.com/t/confused-about-the-profit-generated-from-a-short-sale-of-shares/677915):
>
> 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…

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