What Is Reddit Attack On Wall Street?

What is Reddit attack on Wall Street? Investors on Reddit have launched an attack that's both trolling and serious on Wall Street firms by purchasing shares in GameStop, pushing the stock price up over 480% in a week, costing hedge funds millions of dollars, and skyrocketing young investors' portfolios and egos.

What happened with Reddit and Wall Street?

Reddit day traders wanted to beat Wall Street to prove the system is rigged. Instead, they did it by losing. Reddit day traders tried to beat Wall Street at its own game to prove the system is rigged. Instead, brokerages locked them out and their holdings tanked, while some hedge funds still won big.

What did Reddit do to the stock market?

An army of traders on the Reddit forum r/WallStreetBets helped drive a meteoric rise in GameStop's stock price in recent days, forcing halts in trading and causing a major headache for the short sellers betting against it and banking on the stock falling.

How much did Redditors make on GameStop?

A Redditor claimed to have turned $53,566 in GameStop call options into an $11.2 million fortune. The trader first showed their GameStop call positions doubling in value in a September 2019 post. Insider has not independently verified the trader's claims of turning a profit.

Why are Redditors buying GameStop?

Redditors were drawn to GameStop stock after the company named three new directors to its board on Jan. So small-pocketed investors used the social media platform to drive up the stock prices for shares like GameStop, AMC and several other stocks.

Related investments for What Is Reddit Attack On Wall Street?

Why did Redditors Buy GameStop?

But the main reason behind the interest in the company is because it was the most heavily shorted stock on Wall Street. About 71.66 million GameStop shares have been shorted, worth about $4.66 billion. This is where the very popular 'wallstreetbets' came into the picture.

Why did Robinhood block GameStop?

GameStop shares have since came crashing down only to shoot up once again. However, Robinhood made the surprising move to restrict buying GameStop citing issues with volatile stock and regulatory requirements. Due to its part in the trading frenzy, Robinhood has been scrutinized by its users, regulators and lawmakers.

Why is WallStreetBets buying GameStop?

They made GameStop the primary target because it was discovered that hedge funds were short selling the stock, as GVSU economics professor Dan Giedeman explains. “What short selling is is this: I borrow the stock from somebody,” Giedeman said.

Why did AMC and GameStop go up?

Trading volumes ballooned for both stocks, the darlings of the Reddit crowd, as automatic "stop-loss" orders kicked in. That helped send their share prices soaring on Tuesday by the most since June, by 37% to $225 for GameStop and 26% to $47 for AMC.

How did Reddit hurt hedge fund?

The Reddit revolt focused on a strategy called short selling, where hedge funds make money by betting that share prices will fall. The result could hurt hedge funds that had planned on shares falling, instead, they have to buy back the stock at much higher prices.

What did Reddit do?

Reddit (/ˈrɛdɪt/, stylized as reddit) is an American social news aggregation, web content rating, and discussion website. Registered members submit content to the site such as links, text posts, images, and videos, which are then voted up or down by other members.

What happened GameStop Reddit?

GameStop stock climbed by 104% until trading was halted for a second time - moments before markets closed. The rapid rise came as Reddit, the online home of activist investors that led the GameStop movement in January, went down temporarily. The stock gained nearly 90% in after-hours trading.

How much did Keith Gill make off GameStop?

On top of exercising these options contracts, Gill bought 50,000 additional GameStop shares, bringing his total investment to 200,000 shares worth more than $30 million. His profit is nearly $20 million, according to this latest post.

Who lost most money on GameStop?

Two big hedge funds, Melvin Capital and Citron Research, are thought to have been the most exposed. The former is believed to have lost around 30% of its $12.5 billion under management already this year on a series of shorts, which includes GameStop.

Did WallStreetBets get taken down?

Discord removed the WallStreetBets server on Wednesday. A spokesperson noted the removal was due to hateful and discriminatory content and was not related to GameStop stock's recent surge. “Over the past few months, we have issued multiple warnings to the server admin.”

Is GameStop pump and dump?

With many retail investors (also known as non-professional individual investors) locked out for the moment, the trading frenzy around these stocks, particularly GameStop, is now being called a “pump and dump” scheme by both traders and outside experts.

Is Walltreetbets R Real?

WallStreetBets is actually “r/wallstreetbets” and it's a forum or “subreddit” on the popular website Reddit, which is a social platform and discussion group that also rates web content. Essentially, it's a group of people who enjoy talking about investing and often, speculative investing.

Where did WallStreetBets go?

Reddit group r/WallStreetBets (WSB) has closed its doors and is now a private-only community. What Happened: Only users who moderators have approved will be able to view the page and take part in discussions.

How many shares of GME are short?

Share Statistics

Avg Vol (3 month) 3 2.28M
Float 8 61.76M
% Held by Insiders 1 17.98%
% Held by Institutions 1 28.42%
Shares Short (Nov 15, 2021) 4 6.78M

What did WallStreetBets do?

The army of millions of investors from Reddit's WallStreetBets community pushed GameStop shares from US$20 to US$480 during the January “short squeeze”, in which they drove hedge funds like Melvin Capital into heavy losses, after forcing them to liquidate massive bets against the stock.

How did GameStop stock soar?

GameStop shares skyrocketed in January as retail investors, urged on by popular Reddit forum WallStreetBets, bought the stock as a way to punish hedge funds that had taken an outsized short bet against it. The latest surge comes after a couple of weeks that saw the shares move in relatively tighter ranges.

What is the Robinhood scandal?

Robinhood is fined $70 million over misleading customers and system outages. The Robinhood app became the venue of choice for much of the meme stock mania that boosted shares in companies like GameStop and AMC Entertainment.

Is Robinhood blocking stocks legal?

Robinhood is now facing a class-action lawsuit for blocking users from buying GameStop shares in the ongoing “meme stock” craze. Despite the class action lawsuit, it's important to note Robinhood's customer agreement says the company has the power to prohibit stock trading for users at any time.

What happens when Robinhood stops supporting a stock?

If a stock that you own delists, you'll be able to sell it in the market, but you won't be able to purchase additional shares. Once a stock delists, the in-app market data will no longer reflect the current trading price.

Did R WallStreetBets win?

The Fortunes Won—and Lost—in the Mind-Boggling Rise of r/WallStreetBets. James never paid much attention to the stock market. This past January, WallStreetBets was the staging ground for a populist uprising against the financial establishment that took the stock market and media by storm.

What is the biggest short squeeze in history?

Biggest Short Squeezes of All Time

  • Reliance Industries Limited (NSE: RELIANCE. NS)
  • Piggly Wiggly. Piggly Wiggly was the first self-service grocery store in the United States.
  • Harlem Railroad.
  • Herbalife Nutrition Ltd.
  • KaloBios.

  • Who won the GameStop war?

    Winner: Individual (already wealthy) investors

    Billionaire investor Chamath Palihapitiya scored big — and cashed out — on his bullish $125,000 bet on GameStop, which at one point was up 300%.

    Why are stocks called memes?

    A meme stock refers to the shares of a company that have gained a cult-like following online and through social media platforms.

    Is BlackBerry in a short squeeze?

    Like most meme stocks, BlackBerry has often been mentioned as a potential short squeeze stock. Its short interest is fairly high, and it has a lot of bullish investors who can keep buying or holding while shorts accumulate interest in their accounts.

    Is BlackBerry a meme stock?

    BlackBerry and Corsair Gaming are two meme stocks that also have the potential to rise on the companies' solid fundamentals. So-called “meme stocks” are usually labeled so due retail investors' buying frenzy that runs counter to short sellers' convictions and Wall Street's bearishness.

    Does Citadel own Melvin capital?

    This article is in your queue. Ken Griffin's Citadel LLC and Citadel partners are planning to redeem roughly $500 million of the $2 billion they put in Melvin Capital Management after Melvin got slammed by bad short bets on GameStop Corp.

    Who is Melvin GameStop?

    Gabriel Plotkin's Melvin Capital, the hedge fund at the center of the GameStop trading frenzy in January, is a defendant in nine lawsuits by retail investors alleging a conspiracy to limit trading that caused them to lose money.

    What happened Melvin capital?

    Gabe Plotkin's Melvin Capital Management ended the first half of 2021 down 46% as the hedge fund struggled to bounce back from a vicious attack by Reddit traders on its short positions. The firm, which plunged in January as its bearish bets on companies including GameStop Corp. and AMC Entertainment Holdings Inc.

    What is Reddit age rating?

    Safety features. There are no parental control or safety features available on Reddit. The platform is rated 13+ but they don't have any age-verification tools in place.

    Why do people use Reddit?

    Reddit is a social news platform that allows users to discuss and vote on content that other users have submitted. To help police the site and prevent spammers from bombarding readers, Reddit came up with “karma” points. Users get karma by their comments and links being up-voted by others in the community.

    How does Reddit make money?

    The company generates revenue through advertising and an ad-free premium membership plan. Reddit operates in the application-software segment of the technology industry, providing software that allows users to share media content.

    What happens if GameStop goes up?

    If you think GameStop will fail and the stock will go down, or even that the company will go bankrupt, there's a way to make money on that. The thing about short selling, though, is that you lose money if the stock goes up, and your losses are potentially infinite if the stock keeps going up.

    How do Reddit traders use GameStop?

    What caused GameStop to spike?

    GameStop shares surged nearly 19% Thursday, after doubling in price on Wednesday, in a new rally that once again has many market watchers scratching their heads. Trading of GameStop stock was temporarily halted multiple times Thursday as the wild trading session kicked off.

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