From my understanding in a short ladder attack investors bid lower and lower prices to drive down the stock value. I assume in many cases this will scare retail investors into selling further compounding the downward price.
Specifically, in the case of GME last week the price went from ~468 to ~120 in nearly a hour. My question is why wouldn't hedge fund investors keep doing this until they can close there shorted positions at a profit?
Apologies if this a trivial question. All the hype around GME this past week has really gotten me interested on the mechanics/strategies use in investing.