A Group or Redditors Just Blew Up Two Hedge Funds Over GameStop.
How an army of traders on the Reddit forum r/WallStreetBets helped drive a meteoric rise in GameStop’s stock price, forcing it to halt trading multiple times and causing a major headache for the short sellers betting against it: https://t.co/QNNo8s7GkZ
- Vox (@voxdotcom) January 26, 2021
so i don't really understand the whole thing, but the gist:
reddit sub r/WallStreetBets noticed that hedge funds and investors were short selling the GameStop stock (= they were betting on it going down without actually owning the stock)
the subreddit banded together and brought a ton of GameStop stock and options, pushing the price from $3.25 each to $148
the hedge funds who were batting on it going down now had to buy it at the high price point
Hedge funds Citron Research lost $1.6 billion in a single day and Melvin Capital needs a $2.75 billion bailout
and a few redditors are very rich now
Elon Musk is impressed
Gamestonk!! https://t.co/RZtkDzAewJ
- Elon Musk (@elonmusk) January 26, 2021
bunch of dudes on reddit joined together to raise gamestop's stock price 150% just cuz and u want me to believe the stock market isnt just straight men's astrology
- first-mate prance (@bocxtop) January 26, 2021
It seems Occupy Wall Street had the wrong approach.
- WallStreetBets (@wallstreetbets) January 26, 2021
So they basically liquidated Melvin Capital, who then had to get a cash injection of almost $3 billion this morning and that was wiped out...in a matter of hours. And meanwhile these Redditors are STILL IN IT. This guy made $9 million yesterday and isn’t cashing out 😱. pic.twitter.com/eYjP20XM3X
- Mrs. McG (@mrsmcglover) January 27, 2021
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