‘Big Short’ investor Michael Burry paved the way for the GameStop frenzy when he bought a stake in 2019. Here’s the story of Burry’s game-changing bet.

‘Big Short’ investor Michael Burry paved the way for the GameStop frenzy when he bought a stake in 2019. Here’s the story of Burry’s game-changing bet.

Christian Bale acting as Michael Burry in "The Big Short." The Big Short/Netflix

"The Big Short" investor Michael Burry unknowingly lit the spark that ultimately led to the GameStop frenzy last week.

Burry bought a stake in GameStop in 2019 because he determined the stock was undervalued. He penned three letters to the video game retailer's bosses, urging them to buy back shares and clean up their act.

He couldn't have imagined his efforts would help to motivate thousands of day traders on a Reddit forum, Wall Street Bets, to orchestrate a short squeeze and boost GameStop shares by as much as 2,500% in a matter of weeks.

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The battle between retail investors and short-selling hedge funds over the stock has captured global attention, spurred regulatory investigations, and stoked talk of a financial revolution.

Billionaires such as Mark Cuban and Elon Musk cheered on the upstarts, at least one hedge fund shorting the stock needed a bailout, and overwhelming demand led Robinhood to restrict buying of the stock on