This year’s financial headlines have been dominated by short squeezes. More than a century ago, some of the most famous and largest short squeezes in history occurred. Short squeezes aren’t a new occurrence; they’ve been there since the beginning of time. Over the last year, GameStop Corp. stock has returned more than 4,000 percent to investors. AMC Entertainment Holdings, Inc. has risen about 550 percent in the previous three months, thanks to retail investors flocking to Reddit. The growth of joke stocks and trading apps like Robinhood has raised concerns about Wall Street’s financial stability. As the market adjusts to the new normal, short squeezes are likely to continue to attract a lot of attention, argues John Defterios. There are already hints of a tectonic change in this area.
Here is Insider Monkey’s list of the 10 biggest short squeezes of all time. The list of the top ten largest short squeezes of all time includes Reliance Industries Limited. With a market capitalization of more than $3.1 trillion, the Bombay Stock Exchange, where the short squeeze took place, is the world’s ninth largest stock exchange. Piggly Wiggly was the country’s first self-service grocery shop. In 1922, the company went public, and it appeared that it would continue to thrive. Traders, on the other hand, sold short the stock in expectation of a further drop in the stock price. It subsequently settled for $100 per share, resulting in a loss of millions of dollars. When Cornelius Vanderbilt began dabbling in the railroad business, he was one of America’s wealthiest men. The Harlem Railroad, along with GameStop, Tesla, and AMC Entertainment Holdings, Inc., is on the list of the top ten largest short squeezes of all time. Herbalife Nutrition Ltd. is one of the ten largest short squeezes in history. Regulators penalized Herbalife $200 million for deceptive actions in the years after the Ackman lecture. The company’s market valuation has risen to around $5.6 billion. Shkreli took over biotech startup KaloBios in November 2015, when the company was over $6 million in debt and its lone medicine project had failed. In just five days, the company’s stock price increased by 10,000%. For more details, click 10 Biggest Short Squeezes of All Time.
