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

[evett]

stocks are such a foreign language to me no matter how many movies or shows I watch on it.

i get how they screwed over a hedge fund who were betting against game stop but you can only make real life money if you sell the expensive stock right so who is gonna buy game stop stock from these people knowing its a failing business in reality?

[babs]

tbh it is banked on the hope that someone might not think it's a failing business and then buy

like this company is not worth this much money lmao so idk

[co_lo]

This is me. I always think about the stock market in terms of real money, and that's probably not the right approach, so I understand nothing. 🙃

[maryhurt]

I think the hedge funds HAVE to buy them now at the new high price? I also understand nothing about this

[well_wellwell11]

Straight men's astrology had me laughing into my coffee.

[irajaxon]

lol, same. having known my share of finance douches, this is painfully accurate.

[well_wellwell11]

Yah I'm saving this to use on a finance bro in the future. Just to watch them spiral...

[cricket]

I don't understand but I'm impressed and jealous.

[awkward_as_heck]

I died laughing about it.

Then I saw that picture with the flat face CG man with the word 'STONKS' and I started howling. Those hedge funds have been short selling and destroying businesses for years. Now they get a taste of their own medicine.

[mmmfashnik]

The cretins on CNBC are up in arms about it.

[rihaty]

short selling can hurt a business but it doesn't destroy a business. I guess it could affect a businesses ability to get funding in short term if the price is lower, but short selling is really a bet on the stock price rather than the driver of lowering the price. hedge funds lose money on this all the time, but usually not to this extent.

[neuers]

lmfao, I found out about this because PJ Ransone posted on his ig stories laughing his ass off about it 😂😂

It also made me think of HBO's Industry even tho I don't fully get it lol