The company that went massively short partly would contribute to the losses since they sold off all the stock they shorted. Since a lot of people are in the stock market just to ride waves, they would sell as the price dropped, further pushing it down. Then the Reddit people buying a lot pushed the price up. If they all want to sell now to rake in their profit, the price will drop again. It all reeks of people wanting something for nothing. In theory shorting makes sense. The holder believes it won't drop, hence wanting the stock more than whatever it's worth in the short term. The shorter believes it will drop and takes the risk that it doesn't. It's the reverse of investing in a company; it's investing in their decline. Still all of it seems like money games rather than actual work.