Part 5/10:
Experts emphasize that executing a successful short squeeze requires three critical elements:
High Short Interest: Structures like GameStop's 140% short interest set the stage.
Positive Catalysts: News, social media hype, or other triggers that motivate retail investors to buy.
Buyers' Collective Action: A large number of investors must rally simultaneously to push the stock price upward.
Social media platforms like Reddit, Facebook, and Twitter played a pivotal role in organizing retail investors and disseminating information rapidly, which made such market manipulation increasingly difficult to regulate.