Normally, the way it works is that hedge fund managers make billions of dollars by gaming the system.
But this time, some very smart trolls in mom‘s basement gamed the system and hedge fund managers lost billions. You might see they GameStopped the system.
I liken it to good old-fashioned daytrading.
The media goes on about how they need to regulate this activity. The activity that needs to be regulated if anything is the short sellers. They got to the point where they shorted 140% of the available stock. They set themselves up and I am sure they have done it in the past and got away with it.
If more regulation is to come, they need to limit the amount of shorts.