I see where you are going with this and under normal circumstances a major drop (your example 50% $20 $10) might occur. However, in GME's case there are so many variables that you aren't accounting for that won't let it take a 50% haircut above $20. When this breaks $20 GME shareholders will never see $10 again. There is no precedent for the way this eventual squeeze will play out. Other squeezes happened because a catalyst caused mass panic covering by shorts. The institutions that are holding short positions are well aware of what is coming and while it will be a mass exodus it will be a slow unwinding. Ostk is probably the best comparison $4 to $120 within a year. GME coullook like $4 to $500 by Dec 21. Either way we are all in the right place. Even bears are making a killing on pullbacks.
$GME Squeeze won’t happen till builds to a point holders think it’s peaked and start selling off for profit. When do you think that will be? I say about $20-$30, we’ll see longs start liquidating for profit. That will drop price to a point shorts will rush to cover. Especially new shorts shorting it at these new high points with higher interest, they are going to want to exit at $8-10. And folks...that’s the big retreat you will see and then massive tsunami that’s evident in every big squeeze.
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