GameStop shares are soon to coming crashing down. Trading was actually halted on GameStop shares nine times on Monday and three times on Tuesday due to the volatility. Meanwhile, three of GameStop’s biggest investors gained as much as $US5.5 billion ($A7.2 billion) from the stock frenzy. There are predictions more big players will need an injection of funds to stay alive.Ī shortseller at hedgefund Citron Capital, Andrew Left, said he was being threatened and harassed for betting against the stock.Īccording to analytical firm S3 Partners, short sellers in GameStop were down $US5 billion ($A6.5 million), which included $876 million of losses early Tuesday, reported the New York Post. One big hedge fund, Melvin Capital, needed a bailout as GameStop stock spiked but denied it was facing bankruptcy. It meant all those traders who had bet on a decline in value were losing serious amounts of cash. They bought up stock before it could drop in price and rapidly inflated its value. Reddit users were looking to stick it to the “fat cats” of Wall Street.Īs word spread on its message board that a hedge fund was planning to short sell GameStop’s stock - users decided to get their own back with what is described as a bull raid.
#REDDIT BOARDS AND BEYOND VIDEOS ONLINE FUL MOVIE#
Remember our own Margot Robbie in this famous scene from the movie The Big Short. The feud is playing out because of a stock market strategy called “short selling”. It lets anyone trade stocks without commission.īillionaire Elon Musk added more fuel to the fire when he tweeted a link to the Reddit message board, which saw GameStop’s stock end the day on Wednesday up nearly seven times its value from where it was less than a month ago.
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Individuals investors, many from the Reddit sub group that has nearly four million members, have driven the share price up using an app called Robinhood. Its stock has been hovering between $US3 ($A4) and $US10 ($13) for much of the past year but has hit four straight days of increases.Īt one stage its stock was priced higher than Apple, Facebook, Microsoft and Disney, as it surged by 93 per cent with its shares climbing above $US300 ($A393). US company GameStop is a brick-and-mortar video game retailer that has been struggling with profits due to store closures, decline in physical sales and the COVID-19 pandemic. In what seems like a modern day twist to the Robin Hood story - a gaming company’s stocks have become a batteground between the rich and the poor with Reddit users attempting to bankrupt hedge fund managers.