An Example
If you borrowed or shorted a share of Stock X while it was worth $8, you could buy to cover or return it once the price goes down to $5. This would mean a profit of $3. The plan does not work when the price keeps going up. When that happens, you instead lose money since the price will be worth more than $8.
An Example
It Is A Modern Revolution
In case you have not picked up on it just yet, the big guys are those at hedge funds. In essence, these are enterprises responsible for investing billions of dollars and driving the stock market. They began to short Gamestop until they got to the point that it was shorted 260 percent. This meant 160 percent more than the stocks actually available on the market. With the power they had, they assumed that they could drive its price all the way down to the bottom. They soon found out that they were wrong about that.
It Is A Modern Revolution