re: I need an explanation; Robinhood & GameStock related

Several hedge funds have been on the brink of bankruptcy. These funds typically would probably view short-selling Gamestop as a fairly low risk trade, so they did a ton of it. Problem is, they had basically unlimited risk if the market moved against them.

Ex. Hedge fund shorts 6 stocks at $10 and puts in an order to buy 2 stocks if it gets to $8, 2 more at $7 and 2 at $5. If all their orders clear, they would expect to make $16 profit. But if it comes time to execute and the stock never fell, but actually climbed to $12, I would lose $12 once I bought in those shares.

Redditers on a trading page saw video of one of the hedge funds talking about how they took a huge short position on Gamestop, so they all started buying like crazy to "artificially" bump the price up. So it was like the above example for the hedge funds, except some of the funds had several million naked shorts in Gamestop and were being forced to liquidate at $90/share when they maybe sold for $10 or $15