A Group or Redditors Just Blew Up Two Hedge Funds Over GameStop.

[just444]

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

Comments

[asa_chan]

I don't understand stock trading but uhhh good for them...?

[elvasle]

the more people buy the more stocks are worth. the more people sell the less.

its basically gambling

[laydownhere]

those poor hedge funds :(( might have to do a timeshare on a private plane instead of getting their own

[beysactingcoach]

Not going to lie, I saw that one post of a dude who paid off his student loans because of short selling this stock and not going to lie I am very “Lord, I’ve seen what you’ve done for others, I want that for ME”.

[squirrels_oh_no]

The next stock that is shorted the most is Bed Bath and Beyond, but not nearly at the same levels as Gamestop.

[sandstorm]

AMC.
I already bought some.

[marywebgirl]

I wish I understood this better because I bet it would be even funnier.

[_m3_]

A group of nobody poor people fucked over a bunch of "famous in their own heads" rich people in a big big way. It's hysterical and also a sad display of what the common man can achieve when we work together toward a common goal. Start building guillotines next, Reddit!

[echotango23]

the way i understand it many hedge funds are betting GameStop is going to go down. The redditors are buying and raising the price so when the hedge funds bet ends on friday they have to buy everything at the current price and jack up the price wayyyy higher so all the redditors can cash out.

[para1]

Melvin Capital needs a $2.75 billion bailout

BTW It's a private bailout by other hedge funds (Citadel and Point 72 Asset Management.) I researched this because I was about to get very angry. Now it's hilarious because the bailout is already gone as well, so these other hedge funds could have just set the money on fire.