Good morning. It's Thursday, Jan. 28, and an army of retail investors has some high-profile traders seeing red. Have feedback? Let us know at [email protected].

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NEED TO KNOW

GameStop Takes a Joyride

Shares of the brick-and-mortar video game retailer GameStop rose 134% yesterday, leaving the stock up more than 400% since mid-January.

The surge has little to do with the company's fundamentals, which experts say remain subpar. Instead, retail traders coordinating via social media—largely Reddit's WallStreetBets subreddit—have targeted stocks where major hedge funds have assumed short positions. The practice of shorting (see 101) represents a bet that a company's stock will fall; if the stock rises, the short position will become a larger and larger (and theoretically infinite) loss for the short seller.

In some instances, funds will be forced to buy back shares to cover their short positions, causing the price to spiral upward in what is known as a short squeeze. Funds shorting GameStop have reportedly lost more than $23B ($$, WSJ) so far this year, with Melvin Capital borrowing almost $3B to close positions and stay afloat. The phenomenon has spilled over into other heavily shorted stocks—AMC rose more than 300% yesterday. 

Take an in-depth look at how it all unfolded.

First Private Astronaut Crew

The first crew comprised of private citizens to visit the International Space Station was announced yesterday, marking a watershed moment for the nascent space tourism industry. The three astronauts—American entrepreneur Larry Connor, Canadian investor Mark Pathy, and former Israeli fighter pilot Eytan Stibbe—each paid $55M for the opportunity. Connor, 71, would become the second-oldest person to fly to space; John Glenn flew on the space shuttle Discovery at age 77.

The trip is coordinated by Houston-based Axiom Space, with the crew taking a SpaceX Dragon Capsule and staying at the space station for eight days. While Russia has allowed some private citizens to hitch rides on official missions for years, the launch portends the emergence of private space travel. Jeff Bezos' Blue Origin, Elon Musk's SpaceX, and Richard Branson's Virgin Galactic are expected to introduce orbital trips as early as this year.

Shark Populations Plummet

The global population of sharks and rays in the high seas has fallen by more than 70% in the last 50 years, according to a study published yesterday. The researchers estimate almost three-quarters of the 31 species of pelagic sharks and rays—those that roam the open ocean—are at risk of extinction, up from one-third in 1980. Overfishing is noted as the primary cause for the decline, with the species not only targeted but often inadvertently caught as bycatch. The smooth hammerhead was the only species to see a population rise.

The researchers surveyed global data for sharks using 57 previous studies and datasets. They estimate the losses could be even deeper, as mass fishing started before population charting began in 1970. It is estimated more than 100 million sharks are killed by humans each year. 

The good news? There is evidence of conservation efforts helping some localized populations rebound. 

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HENRY?!

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IN THE KNOW

Sports, Entertainment, & Culture

> Cloris Leachman, eight-time Primetime Emmy- and Oscar-winning actress best known for “The Mary Tyler Moore Show,” dies at 94 (More) | Longtime NBA reporter Sekou Smith dies of COVID-19 complications at 48 (More)

> Animated “Game of Thrones” series in early development stages at HBO Max (More) | Cannes Film Festival officially announces delay to July 6-17 from its originally planned May dates due to the coronavirus (More)

> Inaugural poet Amanda Gorman to perform an original poem at Super Bowl (More) | CBS has nearly sold all its commercial time for Feb. 7 Super Bowl; the 30-second spots are selling for more than $5.5M (More)

Science & Technology

> President Joe Biden signs a series of climate-focused executive orders, including establishment of a National Climate Task Force and pausing new oil and gas leases on federal land (More)

> Scientists demonstrate neurological implant that maintains blood pressure after spinal cord damage, solving a key impairment of such injuries (More)

> First-of-its-kind study shows antibody levels in Ebola survivors undergo rise and fall cycles; data suggest the long-term immune response to deadly diseases may ramp up even without the virus present (More)

Business & Markets

Brought to you by The Ascent

> US stock markets down (S&P 500 -2.6%, Dow -2.1%, Nasdaq -2.6%) on lower earnings and retail investor frenzy (More) | Federal Reserve Chairman Jerome Powell leaves interest rates unchanged at near zero (More)

> Walgreens shares up 4% after announcing hire of new CEO Roz Brewer, who will become the only Black woman Fortune 500 CEO (More)

> Earnings season: Apple surpasses $100B in quarterly revenues for first time, sales up 21% year-over-year (More) | Tesla exceeds revenue expectations, but delivers lower earnings; expects future car delivery growth of 50% per year (More)

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Politics & World Affairs

> Second suicide death of a police officer involved in the response to the Jan. 6 US Capitol riots revealed (More) | Department of Homeland Security releases domestic terrorism alert; no specific threat cited (More) | Senate introduces bill to provide statehood to Washington, DC; would require 10 Republican votes under filibuster rules (More)

> Holocaust survivors commemorate the 76th anniversary of the liberation of the Auschwitz concentration camp during online ceremony (More)

> Report alleges Proud Boys leader Enrique Tarrio acted as a longtime informant for federal and local law enforcement following a 2012 arrest (More)

IN-DEPTH

'But I Never Smoked'

STAT | Sharon Begley. A growing share of lung cancers is appearing in an unexpected population: people who never smoked. The shift is forcing researchers to understand the differences and reevaluate screening guidelines. (Read)

Earth at a Cute Angle

Nightingale/Medium | Robert Simmon. The oddly seductive argument for switching satellite imagery from a top-down to off-nadir, or angled, view. (Read)

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ETCETERA

The case for swearing.

Powerful: Auschwitz survivor takes over @Israel to recount his experiences.

Here's how New Orleans is pivoting for Mardi Gras.

Paleontologists may have found the largest land animal ever.

This sprawling, 23-bedroom house comes with one major catch.

What the house of the future looked like in the 1950s. (via YouTube)

Designer turns unused animal skin and bones into recycled packaging.

This futuristic copter could be the US Army's next Black Hawk.

Clickbait: GameStop's short squeeze gets its own sea shanty. (via YouTube)

Historybook: Jane Austen’s “Pride and Prejudice” is published (1813); Painter Jackson Pollock born (1912); Modern US Coast Guard is founded (1915); HBD Mexican billionaire Carlos Slim (1940); Space Shuttle Challenger disintegrates after launch, killing all seven astronauts on board (1986).

"I touch the future. I teach."

- Christa McAuliffe, teacher and astronaut killed during Challenger explosion.

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