Despite fundamental challenges, meme stocks swept the market by storm last year with their logic-defying rally. Retail investors banded together on social media forums like Reddit's WallStreetBets and engaged in aggressive wagering against major hedge funds, which led to a significant short-squeeze in several equities.
These unheard-of gains, however, were not supported by strong fundamentals or encouraging news. As a result, the stocks suffered massive sell-offs, resulting in significant losses for retail investors.
