From GameStop (NYSE:GME) to AMC Entertainment (NYSE:AMC), the WallStreetBets community has fueled explosive gains in meme stocks with questionable fundamentals. Driven by social media hype, the virtual showdown between retail traders and institutional investors has repeatedly identified massive short-squeeze stocks. Newer investors may be asking, what is a short squeeze? As Travis Box, Ph.D., assistant professor of Finance…

The short-squeeze rally in meme stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) is poised to go down in financial history books in terms of shareholder gains. However, a short squeeze is only a temporary phenomenon if the underlying business lacks solid fundamentals. This would be true even for GameStop and AMC if their sky-high…