Research into the Factors that Cause a Price Bubble in GameStop During 2021

The GameStop is an old game product retailer in the US. With the increasing trend of online game trading, the offline sales of Gamestop are impacted, and the loss of sales from 2017 to 2021 increased by 77%. Thus, amounts of short sellers, led by Melvin Capital, began betting against GameStock's stocks during January 2021, while numbers of retail investors were long the stocks, and subsequent Short Squeeze push the price to the peak $482.850. Obviously, the GameStop stocks are over-valued during 2021, a series of actions creating a price bubble. The conclusion of this paper is to analyze the four factors that caused price bubble of the GameStop during 2021- Short Squeeze, the impact of social media, the impact of retail investors, and the online sales - through using data and charts.