Will the run up in stocks like Gamestop just encourage more short selling?

To have a short seller you gotta have a short buyer.

I actually think it will do the opposite.

You now have a large group just looking for any stock with a large short position to squeeze it. It’s the new trend. If you can manage to short a stock that no one else is shorting then you can get away with it, But I think it will make people more cautious about getting stuck in it.

I think what many people are missing is that the higher than normal volume that WSB brings actually gives short sellers time to buy out their positions. Sure the percentage short of available shares may remain high, but they just essentially swap out for a higher price. For instance buy to cover at 100 for GME but sell short again at 375. When you've got huge daily volume of shares being traded, that opportunity is seemingly endless.

It's all about who can hold out longer. They'll make more money on the way down than they've lost if their short position goes from 375 to 40, assuming they have the capitol to pay the short interest. I doubt the hedge funds will be caught with their pants down again.

I think this all will basically be a pump and dump. Someone is going to be left holding the bag. Tread carefully.

Doesn’t this depend on your short position and your estimated profit margins? You would have to take all of this into consideration before making a move