Reddit Triggers Massive GameStop Short Squeeze Costing Wall Street Billions
Amateur traders on the Reddit forum Wallstreetbets use easy trading apps to drive GameStop shares up nearly 2,000%, causing massive losses for hedge funds. The viral movement now targets other struggling companies like AMC and Blackberry.
A fast-growing Reddit discussion board called Wallstreetbets completely disrupts Wall Street by driving GameStop's stock price up nearly 2,000% in less than a month. Armed with cheap trading apps like Robinhood, young investors target the troubled video game retailer to orchestrate a massive short squeeze against hedge funds. Even after a slight drop, the stock remains drastically higher than its $14 share price from December.
Members of the forum actively fight back against short-sellers by vowing to hold their shares and encouraging others to buy even more. This intense coordinated effort forces notable critics, such as short-seller Andrew Left, to back down entirely after reportedly facing threats. The movement frames this financial maneuver as a victorious battle for everyday people against the wealthiest one percent of investors.
The online collective now expands its focus beyond GameStop to target other struggling companies that Wall Street has largely abandoned. Shares of Blackberry, National Beverage, and AMC experience similar surges in January following mentions on the Reddit board. Observers draw parallels between this viral financial movement and other online phenomena, describing it as a unique blend of Occupy Wall Street and modern internet conspiracy cultures.