stocks in meltdown mode

[SunnySide]

My little brother is a wallstreetbets member. He cashed out 2 days ago.

Big money guys shouldnt be able to short sale (sell stock they dont own on assumption it will go down and they will then buy the stock). Hedgefund big money guys target a stock. Sell a stock (they dont technically own) for $10 bc the volume them and their other hedges do it at in unison will drive the price down. Then they buy the stock for $8 or whatever it goes down to complete the previous sell at $10, pocketing $2 for a stock they never owned.

Meanwhile, single mom and dads (who actually own the stock) watch their stock price go from $10 to $8 over night not bc of a companys PE or financials (things that are supposed to dictate stock price and market activity) but bc some hedgefund investors decided to target gamestop or whatever stock for a short sale cash grab while on their yachts or some strip club.

It blows my mind this is legal.

So wallstreetbets decided to buy gamestop and not stop buying gamestop so instead of the price going down it went up and up bc wallstreetbets didnt stop buying.

Now these hedgefunds who thought they could buy the stock at $8 and make a quick $2 ...... have to buy the stock at like $300 and are losing $290 or where ever they cut their losses.

I am not a stock person, this is my layperson understanding and I could be wrong or way over simplyfing things to the point of being inaccurate.

This is like a modern day robin hood.