On GameStop :
$3 share now trading for $350. Reason : hedge funds bet strongly against it that it will drop. Didn't in time because reddit mob predicted hedge fund's move, and ensured price stays high. Now hedge funds have to buy shares at exorbitant prices to full-fill their short-sell promises. Pushing the price even higher.
Billions of losses everyday for those that short-sold. Melvin Capital had to sell this week large portion of their assets to offset the losses.
Here's a difference. In regular trade, the worst you can get after buying say $2000 shares, is complete loss of that $2000. If you go the put option route, your losses can touch sky to $2m if price rise 1000x within that time.