Informed Accumulation · Case Study

GME

2021-01-27ALERT STRONG

Meme squeeze — broker buy-restrictions.

Price, rebased to 100 at the signalChart shows raw price · −88% forward low

Before the signal After the signal Signal fired

Signal

IAS 29.1

Alert tier

ALERT STRONG

Spot at flag

$300

20-day outcome

20-day idiosyncratic −93%

Flow signature

🐜 mostly aggregated. This describes the shape of the order flow — how the accumulation was assembled — not its intent and not its likely outcome.

What happened

Accumulation flagged at the very top of the short-squeeze; days later brokers restricted buying and the unwind began.

The catalyst: Meme squeeze — broker buy-restrictions.

The outcome: 20-day idiosyncratic −93% — a forward idiosyncratic move (beta-stripped vs SPY) over a mature 20-day window. The raw price shown on the chart reached −88%; the two differ because the outcome strips out the market’s beta.

The story behind it

GameStop was the epicenter of the January 2021 meme-stock squeeze. A Reddit-fueled retail army — r/wallstreetbets and 'Roaring Kitty' — forced one of the most heavily-shorted stocks in the market from about $20 to an intraday $483, detonating hedge funds like Melvin Capital.

IAS flagged one-sided OTM-put accumulation at the very peak of the mania. Then, on January 28, Robinhood and other brokers abruptly restricted buying. The squeeze broke and the unwind began — roughly 93% off the high.

A textbook 'magnitude, not direction' case: the puts were building into a violently binary moment, and the move came.

Read this honestly

Informed, not privileged

The tape showed accumulation. It cannot prove who traded, what they knew, or why.

Direction was not predicted

IAS called that a large move was coming — magnitude, never which way. Two cases in this library resolved UP; that is the proof.

Ranked by magnitude

The edge is the magnitude estimate — P(large move) — not raw IAS. A high IAS with a low magnitude estimate is unusual but not notable for movement.

Long volatility, not long puts

These names often spike the other way first. The historical behavior looks like long volatility, not a directional put position.

All case studies How IAS works See today’s signals

This is a historical, out-of-sample detection shown for illustration. Informed Accumulation is a research and data signal, not investment advice or a recommendation to buy or sell any security, and it does not predict the direction of any single name. AInvest Options Pilot is not a registered investment adviser, broker-dealer, or financial planner. Options involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results.