It's incredibly good for GameStop. This gives them an excellent opportunity to issue new stock and raise a huge war-chest to pivot and become a 21st century business.

Would that actually work? It takes time to issue new stock, and at that point, this may have passed.

The thesis that many Bulls are approaching Gamestop stock with is that the company was fundamentally undervalued prior to the current short-squeeze event. Even after the current spike resolves, a return to a $30 or so share price (up from $5 or so most of this year) gives them plenty of market cap and plenty of time to capture it for a major re-positioning in the market.

>It takes time to issue new stock

Curious how long it would take. Are there regulatory hurdles that take time? If not, I could see that the potential for large profits might make an otherwise slow process suddenly get completed in a short amount of time if needed.

That's because it's a new phenomenon. We'll get used to it.

If it's sincerely a new phenomenon perhaps you're right, but cynically this looks a lot like pump and dump and frankly that's been around forever.

What's new here is that the sales pitch about shorts needing to be covered has more truth to it (I think, not an expert) than the usual vague promises about a huge turnaround being right around the corner. Usually the argument that other buyers will follow you is based purely on their supposed FOMO

Impossible pump and dump bubbles are a very old and well-trafficked phenomenon. This particular case is a bit interesting, because it appears that the pumping may be a fully distributed phenomenon - but even then, it shouldn't surprise anyone if news eventually breaks that there was some organized group behind it.

Exactly! It's coordination on a scale never seen. But yes, traditional P+D been around forever.

It's not pump and dump, though, it's a short squeeze. It's happened before, many times, with the most famous prior case being VW (https://en.wikipedia.org/wiki/Short_squeeze#Examples_of_shor...)