GameStop Plugs 'Infinite Money Glitch,' Stock Starts Printing Cash

Core Insights - GameStop Corp. is currently in the spotlight due to a trade-in loophole and significant insider buying by CEO Ryan Cohen [1] Infinite Money Glitch - A YouTuber exposed a loophole involving the Nintendo Switch 2 that allowed customers to gain store credit by trading in the console [2] - Customers could buy a Nintendo Switch 2 for $414.99 and trade it back in with a cheap pre-owned game, triggering a promotional multiplier [2] - This promotion erroneously increased the trade-in value of the console to $472.50, resulting in a profit of approximately $57 per cycle [3][4] Company Response - GameStop confirmed the existence of the glitch and stated that it has been patched, emphasizing that their stores are not intended to function as "infinite money printers" [4] Insider Buying - CEO Ryan Cohen purchased 1 million shares of GameStop this week, with 500,000 shares bought on Tuesday and another 500,000 on Wednesday at an average price of about $21.40 [5] - This $21 million investment increases Cohen's total stake in GameStop to approximately 9.3%, or 42.1 million shares [6] - Cohen's buying activity has positively impacted investor sentiment, leading to a 10% increase in the stock price for the week [6] Market Sentiment - The anniversary of Keith Gill, known as "Roaring Kitty," has sparked nostalgia and discussions on social media, contributing to the meme stock status of GameStop [7] - The combination of the trade-in glitch and Cohen's significant purchases has reinforced GameStop's position in the meme stock market [7]