Nearly two years after one of the biggest short squeezes in market history, some lessons have been learned and others less so, possibly because investors are struggling to keep up with what has become a relentless and punishing stream of macro and market news.
The GameStop saga of 2021 has now been cataloged in two separate documentaries – aptly named “Eat the Rich” and “Diamond Hands” – which make for compelling TV. The story illustrates the cumulative risks of powerful market players acting as gatekeepers while having little interest in protecting both individual and public interests.
The cycle of euphoria and crash that Gamestop epitomized has since played out, to even more devastating effect in the crypto arena. Hundreds of thousands of retail investors were left holding drastically devalued tokens thanks to the mismanagement of high profile investment funds and brokerages. In addition, crypto evangelists with vested interests in the inflated price of these assets and who zealously overhyped them must assume their share of the blame.
