From: CA native, retired in FL
The hedge fund made a massive bet on a stock value going down, which is essentially a bet on a company to fail
Gamers got wind of the fact that it was one of the "their" companies and decided to take matters into their own hands, and self-organize to hammer the hedge fund for shorting Gamestop stock, at least partially to "stick it to the man" and also because they felt like a bunch of hedge fund robber barons who bring literally -zero- value to the investment world (shorting stocks is all about making money for your investor and not at all about trying to improve a company's long-term health or prospects) were screwing with a place they all had deep personal connections to.
Gamers *VERY* quickly figured out the rules of the game, kicked the hedge fund's ass at it, and caused a multi-billion dollar hedge fund (that makes their living on betting that companies will fail) to go bankrupt.
Those hedge fund twats are in the singular business of generating paper wealth for their investors on the backs of someone else's suffering, so no, they don't get a pass on this one, and yes, they do get to suck long and hard, just like Connery told Trebek on Celebrity Jeopardy.
They created a game that should've never existed (betting on failure) and they lost their shirts a million times over. Now they're whining that someone better at their game beat them. Too bad.
If nothing else, perhaps this entire exercise will have been worth it if only to get rid of the idea of short-selling.
Formerly Grognerd, currently Doc Savage