If You'd Sold Short $10,000 in GameStop Stock When 2021 Began, This Is How Much Money You Would've Lost

Few stocks have garnered the level of attention that GameStop (NYSE: GME) has so far in 2021. The video game retailer has been on the outs for a long time, threatened by shifting industry trends and the move toward digital distribution of video games. That prompted many institutional investors to bet against GameStop's survival by selling the stock short .

But as those investors learned the hard way, short-selling is fraught with peril. Even when a stock's underlying business remains weak, the ever-present possibility of a short squeeze can bring massive losses. Indeed, as much as GameStop short-sellers have lost as of Feb. 16 from betting against the company, it's only a tiny fraction of how bad their losses would've been if they'd been forced to close their short positions just a couple weeks ago.

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Source Fool.com