Evidence strongly supports Sacks’s view that the early‑2021 GameStop short squeeze ended badly for buyers at inflated prices.

During the meme frenzy, GameStop (GME) hit an all‑time closing high of about $86.88 on January 27, 2021, and an all‑time intraday high around $120.75 (split‑adjusted) on January 28, 2021.(statmuse.com) Contemporary reporting also describes the stock briefly exceeding $400 pre‑split at the peak of the mania.(businessinsider.com)

Within weeks, the squeeze collapsed: by February 2021 the average closing price was only about $17.89, a 67.9% drop for the month, and coverage notes the stock “plummeted to around $10 by mid‑February 2021.”(statmuse.com) That is a catastrophic outcome for anyone who bought near the late‑January highs.

Over the longer term, GME has never returned to its early‑2021 squeeze levels. Historical data show that from 2024–2025 the shares mostly trade in the $20–30 range, with the latest price around $21–22 as of late 2025, far below the January 2021 peak.(statmuse.com) Recent articles explicitly state that, despite occasional meme‑driven rallies, GameStop “has never returned to its previous highs.”(businessinsider.com)

Given the massive, rapid crash from the squeeze highs and the persistent multi‑year underperformance relative to those peak prices, the prediction that the episode would “end very badly” for those buying at inflated squeeze valuations is borne out by the data.