Short Squeeze potential confirmed. Taken from GameStop's SEC filing. Page 15

Maybe there's a different reasoning behind this...

Rule 105 of Regulation M

The Securities and Exchange Commission adopted amendments to Rule 105 of Regulation M to further safeguard the integrity of the capital raising process and protect issuers from manipulative activity that can reduce issuers' offering proceeds and dilute security holder value. Before Rule 105 was amended, it prohibited a person who sold short during a defined restricted period from covering a short sale2 with offering securities. Among other things, the amendments eliminate the covering element of the prior rule because of a proliferation of strategies designed to conceal the prohibited covering and continued violations of the prior rule. The amended rule makes it unlawful for a person to purchase securities in an equity offering if that person sold short the security that is the subject of the offering during the Rule 105 restricted period.

https://www.sec.gov/divisions/marketreg/tmcompliance/regmrule105-secg.htm

https://www.sec.gov/about/offices/ocie/risk-alert-091713-rule105-regm.pdf

I don't know.

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