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GameStop (GME) hit an intraday high of $483 on January 28, 2021, and closed at approximately $347.51. From a fundamental perspective, GameStop was at the time merely a struggling physical video game retailer with steadily declining annual revenue; most analysts considered its “fair value” to be no more than $10–20. In other words, sentiment and collective action propelled a “company with a fair value of $10” all the way to $483—a premium of over 40 times. The psychological mechanisms behind this are well worth understanding: 1. FOMO: Watching others make money causes rationality to instantly collapse. 2. Sense of collective identity: The “Us vs. Wall Street” narrative on Reddit turned buying GME into a matter of “taking sides,” rather than an investment decision. 3. Self-fulfilling prophecy: When enough people believe “it will keep rising,” it actually does—until the music stops. 4. A Mirror of the Crypto Market: This week’s $RAVE story is a carbon copy of GME. The only differences are that a physical stock was replaced by a meme coin, and Reddit was replaced by X (Twitter). I highly recommend watching *Dumb Money*🤪—the movie about the 2021 GameStop event. There’s a lot to learn from it.