system
A chat on subreddit /r/wallstreetbets
human
Their market cap had gone to $100 million while having $5 billion in assets or something with not a lot of liability. Can you see the issue there? Even if short squeeze was not happening, every degenerate gambler would throw some cash at that stock to maybe win something out of bankruptcy.
gpt
It’s because the assets get liquidated to pay off the debt first, often nothing left for shareholders after that. Or look at American Airlines, they went bankrupt wiped their stock and just issued a new batch to new people.