The same judge had previously dismissed a lawsuit alleging that there was collusion between brokerages and Citadel Securities. [12], The subreddit r/wallstreetbets is an online community on Reddit, a social news website. [117] Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. In which case my initial reaction is that it's awesome Reddit users and others are sticking it to hedge funds. A group of angry Redditors have caused billions of dollars of damage to hedge funds shorting GameStop stocks. [68][69] Reports estimated that about $27 billion in value had been erased. [102] Due to the enormous losses, Left stated that Citron Research would stop providing short-sell analysis, and instead focus on "long side multibagger opportunities for individual investors". The community is known for discussion around meme stocks and high-risk stock transactions. [85], On March 25, the stock rose 53 percent from its previous day's decline of 34 percent. At various points during his initial testimony and questioning, Gill made references to memes. The lawsuit alleges that a call was set up between Robinhood CEO Vlad Tenev, and a redacted person at Citadel Securities. [106] According to Morgan Stanley, a number of hedge funds covered their short positions and sold shares in their portfolio to reduce leverage and market exposure, in some of the largest such actions within 10 years. [265] HBO developed a mini-series, Gaming Wall Street, which was released on March 3, 2022. I'm not sure there is. [188][189][190] Similarly, a man in Colorado filed a federal lawsuit against Robinhood as well as Citadel, Charles Schwab, Interactive Brokers, Open to the Public Investing, TD Ameritrade, and Webull, alleging he "was forced into a situation by which he was essentially forced to sale his equities at a drastically reduced position given the new market condition set by these supposedly neutral brokerage houses, taking significant losses and being incapable of trading in these publicly held equities that he had performed significant due diligence and research on, and relied upon over the course of his job as a day trader. . In an "ask me anything session" on r/wallstreetbets, entrepreneur Mark Cuban also encouraged GameStop buyers to hold on to their stock if they were able to. The proportion of shares borrowed to back those short positions had been between 50 and 100 per cent of the company's. [60][58][61] Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. It notes that Swartwout then stated, "I have to say I am beyond disappointed in how this went down. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. [158] On January 28 and 29, the price of silver rose 10 percent. [13] Observers congregating around r/wallstreetbets believed the company was being significantly undervalued, and with such a large amount of the shares being short they could trigger a short squeeze, by driving up the price to the point where short sellers had to capitulate and cover their positions at large losses. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. GameStop dropped 44% on Thursday, falling for the first time in six days as Robinhood and Interactive Brokers limited trading in several of the heavily shorted names to closing positions only,. [86][87], Short sellers who had bet against GameStop suffered large losses as a result of the short squeeze. Other investors held onto their long positions while the stock prices were declining rapidly, amid widespread calls on r/wallstreetbets to hang on to the failing shares. [98], On June 22, 2021, White Square Capital, a London-based hedge fund that was reported to have suffered "double-digit" losses betting against GameStop, announced that it would be shutting down. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. Gains continued in after-hours trading, nearing an additional 100 percent. [120] The Church of Jesus Christ of Latter-day Saints, through its investment manager Ensign Peak Advisors, bought 46,000 shares of GameStop in 2020, and saw the value of its investment jump 900 percent. In one of the most notorious and publicized short squeezes of all time, the stock of video game retailer Gamestop exploded from around $17 per share in early January 2021 to an intraday high of. [183], A Robinhood customer filed a class-action lawsuit against the company on January 28, 2021, for halting trading on GameStop. This initially triggered a monstrous short squeeze. 4,273 Jobs. A Detailed Overview of the GameStop Short Squeeze February 25, 2022 A Detailed Overview of the GameStop Short Squeeze From January 4, 2021 to January 29, 2021, the GameStop Corp. (GME) stock rose from $17.25 to $325.00, which is almost a 1900% increase in valuation (Yahoo Finance, 2021). Top Glove, Hartalega and Supermax respectively recorded increases in shares as high as 15 percent, 10 percent and 9.2 percent during intraday trading on January 29, before closing with respective increases of 8.5 percent, 5.4 percent and 3.7 percent. [116], Hedge fund manager Senvest Management, which had previously bought a five percent stake in GameStop when shares were at $10, made a profit of $700 million, exiting its position after Elon Musk tweeted "Gamestonks!". Why? [88], After GameStop's share price spiked again in May 2021, it was reported that Light Street Capital, run by so-called "tiger cub" Glen Kacher, was down more than 20 percent during 2021. MeaningCloud extends the concept of semantic API with a cloud-based framework that makes the integration of semantic processing into any system something close to a plug-and-play experience. ", "Nokia's stock soars toward a record gain on record volume, for no apparent reason", "Brokerage Firm Siebert Soars as Reddit Feed Targets Another Short Squeeze", "Reddit's GameStop gang pushes Tootsie Roll to record", "Caught in the GameStop frenzy, a different GME stock goes on a wild ride", "GameStop Mania Spreads Half a World Away to Target Glove Makers", "GameStop mania spreads as far as Malaysian glove makers", "Shares of Rocket Companies, a large short target of hedge funds, jump more than 70%", "Rocket Companies stock soars 70% on speculative trading, mirroring GameStop rally", "Rocket Stock Is the New Meme Trade. GameStop's rocket ship has come back to earth. [164] Yellen convened a meeting of financial regulators, including the heads of the U.S. Securities and Exchange Commission, Federal Reserve, Federal Reserve Bank of New York and the Commodity Futures Trading Commission, to discuss the volatility surrounding the short squeeze. Do you agree? [248], Following the decision by brokerage firm Robinhood to halt the buying of stocks affected by the short squeeze, users on Reddit and other social media called in question its relationship with Citadel Securities. Main article: GameStop short squeeze On January 22, 2021, users of r/wallstreetbets initiated a short squeeze on GameStop, pushing their stock prices up significantly. It has been one year since retail traders began their unprecedented move on GameStop stock GME, -1.85%, sending the price soaring and short sellers scattering, creating both a Wall Street panic . A Comparative Analysis of New Users on WallstreetBets During the Gamestop Short-squeeze. [20], On January 27, 2021, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. [76] Reports could not identify a specific cause for the surge. [111] There is no allegation of insider trading among BlackBerry executives, according to CBS News. He stated on January 29, 2021, after the GameStop short squeeze, that he "thought this trade would be successful" but "never expected what [had] happened over the last week", adding that he planned to continue his YouTube channel as Roaring Kitty and potentially buy a house. [27] The stock price increased 1,500 percent by January 27 over the course of two weeks, and its high volatility caused trading to be halted multiple times. [228], Several celebrities and influencers also criticized Robinhood. In the GameStop short squeeze, Melvin and Citron (and possibly others) shorted GameStop's stock. [121], The trading led to increase in the stock of the Koss Corporation, and by selling stock the executives and directors of the company were able to earn $45 million, which was greater than the company's valuation in 2020. [160][161][162][163], On January 27, 2021, White House press secretary Jen Psaki said that Treasury Secretary Janet Yellen and others in the Biden administration were monitoring the situation. [154] Robinhood then began limiting the trading on Dogecoin. [226] OpenAI CEO Sam Altman suggested the company change its name. [57][249][250][60] In November, a U.S. District Court dismissed a class action lawsuit ruling that investors failed to show collusion. [12] This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. [36] As of January28, 2021[update], the all-time highest intraday stock price for GameStop was $483.00 (nearly 190 times the low of $2.57 reached 9 months earlier in April 2020). "[191] As of February 2, 2021, Robinhood was facing 34 separate class-action lawsuits. . In January 2021, a short squeezeof the stockof the American video game retailer GameStop(NYSE: GME) and other securitiestook place, causing major financial consequences for certain hedge fundsand large losses for short sellers. [94] On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. GameStop had been a favourite target of short-sellers for some time. [73][74][75], On February 24, GameStop share prices doubled in heavy volume in the final 90 minutes of trading, with the company's stock halting twice, shortly before closing at $91.70, a 104-percent gain. [111], GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. [220], In a CNBC interview, Reddit co-founder Alexis Ohanian compared the rally to Occupy Wall Street, saying that "it's a chance for Joe and Jane Americathe retail buyers of stockto flex back and push back on these hedge funds. [45], On January 28, more than 1 million GameStop shares, then worth $359 million, were deemed failed-to-deliver. #DeleteRobinhood", "Elon Musk lashes out at short sellers during GameStop market war", "Ja Rule, a Robinhood User Since 2014, Calls GameStop an 'Uprising', "Jon Stewart joins Twitter and defends the Redditors", "Jimmy Kimmel deletes tweet suggesting Jon Stewart sounded like Trump by backing GameStop traders", "Jimmy Kimmel Sparks Anger For Calling Reddit Investors 'Russian Disruptors', "Robinhood Hit With Class Action Suit for Muzzling GameStop Uprising", "Mark Cuban, Dave Portnoy, AOC and others react to Robinhood restricting trades on GameStop and AMC", "Wall Street may never be the same after GameStop saga", "Leon Cooperman on GameStop Reddit speculators: 'I'm not damning them' but it will 'end in tears', "Robinhood is getting trashed on Google Play", "Google Deletes 100,000 Negative Reviews of Robinhood App From Angry Users", "Robinhood plummets back down to a one-star rating on Google Play", "Protesters gather at Robinhood HQ, SEC, NYSE", "Angry customers show up at Robinhood's headquarters in the wake of GameStop trading chaos", "The GameStop Short Squeeze Shows an Ugly Side of the Investing World", "GameStop short-sellers Melvin Capital and Citron surrender their bearish bets after 700% rally drives huge losses", "Citron Research covered majority of GameStop short position in $90s/share", "Death Threats and Hate Force Hedge Funds to Step Up Security", "Robinhood and Citadel's relationship comes into focus as Washington vows to examine stock-market moves", "Robinhood Gets Almost Half Its Revenue in Controversial Bargain With High-Speed Traders", "GameStop Frenzy Puts Spotlight on Trading Giant Citadel Securities", "The Citadel Link: What Ken Griffin Has to Do With GameStop", "Robinhood, Citadel Win Dismissal of Meme-Stock Lawsuit", "Citadel Securities Says It Learned of Trading Curbs on Twitter", "Citadel Securities Faces New Pressure Over GameStop Frenzy", "Reddit rejoices as hedge-fund billionaire Ken Griffin fires back at those making #KenGriffinLied a trending topic on social media", "Court Filings Spark New Citadel-Robinhood GameStop Theories", "Here's what Robinhood executives allegedly said internally at the height of the GameStop short squeeze", "#CitadelScandal is trending on Twitter as retail traders express fresh outrage over allegations around meme-stock trading", "Netflix Finalizing GameStop Stock Movie Package; Mark Boal In Talks To Write, Noah Centineo Attached, Scott Galloway To Consult", "MGM Lands Rights To Ben Mezrich's Book Proposal 'The Antisocial Network'; Would Chronicle Recent Wall Street-GameStop Chaos", "Three GameStop movies are rushed into development. [176][needs update], On January 28, 2021, the House Financial Services Committee announced that it would convene a hearing to discuss online trading platforms. GME has struggled in recent weeks, accumulating losses of 50% since the June peak. The GameStop short squeeze, starting in January 2021, was a short squeeze occurring on shares of GameStop, primarily triggered by the Reddit forum WallStreetBets. [261] Separately, Metro-Goldwyn-Mayer (MGM) acquired the rights to make its own movie based on Ben Mezrich's book proposal The Antisocial Network, aimed at chronicling the recent events on Wall Street. GME shares currently have a short interest ratio of 10.0. This can result in a cascade of stock purchases and an even bigger jump of the share price. [22], Suggested factors included anger of some investors towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008,[23][18][24] or the general democratization of the stock market coupled with the ability of retail traders to communicate instantaneously through social media. Short selling is a finance practice in which an investor, known as the short-seller, borrows shares and immediately sells them, hoping to buy them back later ("covering") at a lower price, return the borrowed shares (plus interest) to the lender and profit off the difference. His net worth, as reported by Forbes, had declined by $500 million from its peak of $2.1 billion in 2019. [194], A lawsuit was filed in a court in Massachusetts by securities class action firm Hagens Berman Sobol Shapiro on behalf of an investor against Keith Gill. [179][180][181] Representative Brad Sherman accused Griffin of trying to evade his questions. [32], Gamestonk!! Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty",[15][16][17] purchased around $53,000 in call options on GameStop's stock in 2019 and saw his position rise to a value of $48 million by January 27, 2021. [235] More generally, it was recognized that Wall Street was now subject to the same populist vigor (afforded by Internet connectivity) as the entertainment industry, politics, and so on. The GameStop short squeeze has now lasted far longer than we might expect. [155], Following the stock market surge, futures for silver began to rapidly increase as well,[156][157] although later news reports clarified that it was unclear who was behind the rise. Hello! [118][114] Asset manager BlackRock had a roughly 13-percent stake in GameStop, which was worth $2.6 billion at the peak. [52] Webull halted buy orders for stocks affected by the squeeze,[53] but soon thereafter allowed orders to continue. I've dealt in deep value stocks for years but have never endured bearish sentiment this heavy. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. [99][100], According to a report by Bloomberg, Andrew Left, an activist short seller and head of Citron Research, had also shorted the stock and claimed to have closed the position as a total loss. As the stock prices continued to decline, many retail investors suffered significant losses,[73][74][75] with some r/wallstreetbets users losing a majority of their savings.[123][124]. GameStop's short percent of float recently was about 13.3%. Then if we look at the third most recent 13F Form, which came out on March 31st, 2020 we can see they claim to be shorting 2,800,000 shares of Gamestop at $9,800,000 of Value, which means they shorted GME for $3.50 a share. Move Over, GameStop", "After GameStop-like surge, Rocket stock frenzy shows signs of subsiding", "GameStop frenzy takes cryptocurrency market over $1 trillion", "Reddit frenzy pumps up Dogecoin, a cryptocurrency started as a joke, by over 800%", "The GameStop stonk bubble has swallowed DogeCoin, Frankie Muniz", "Bitcoin spikes 20% after Elon Musk adds #bitcoin to his Twitter bio", "Robinhood restricts crypto trading as Dogecoin soars 300 percent", "Silver futures jump 7% as Reddit traders try their squeeze play with the metal", "Silver Is the Latest Market Hit by Reddit Day-Trader Frenzy", "Silver hits eight-year high, but who's behind the buying? [103] Other firms that incurred large losses include D1 Capital Partners, which lost $4 billion (20 percent of its capital). [71] The short squeezed securities' prices continued to decline during the week. On March 24, the GameStop stock price fell 34 percent to $120.34 per share after earnings were released and the company announced plans for issuing a new secondary stock offering. [57][58][59] The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion,[63] noting that the large trading volumes in specific stocks "generated substantial risk exposures at firms that clear these trades []particularly if the clearing member or its clients are predominantly on one side of the market". [173], Attorney General of New York Letitia James confirmed in a press release that her office would look into the matter, saying "We are aware of concerns raised regarding activity on the Robinhood app, including trading related to the GameStop stock". [97][98] Melvin ultimately shut down on May 18, 2022. [236][additional citation(s) needed], However, investor Michael Burry, who had acquired a 3.3-percent stake in GameStop in 2019, criticized the short squeeze, stating that "there should be legal and regulatory repercussions", and adding "this is unnatural, insane, and dangerous". The GameStop short squeeze story is headed to the big screen in 2023. [17][18][19] Gill, a 34-year-old marketing professional and Chartered Financial Analyst (CFA) from Massachusetts, stated that he began investing in GameStop during the summer of 2019, after believing the stock to be undervalued. [157] On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading[which?] Hence, the initial short squeeze triggered a gamma squeeze and pushed GameStop stock to highs of $325. [72], Despite the decline, some r/wallstreetbets users rallied to convince other users to hold on to the shares, arguing either that they would increase in value or that such an action would send a political message. [239], Disgruntled users review-bombed the Robinhood app on the Google Play Store after it halted the trading of GameStop securities, pushing its ratings down to one star. [72][73] As the stock prices continued to decline, some of the recent investors held on to their shares, and suffered significant losses. They also questioned whether Robinhood was encouraging its customers to take excessive risks in order to generate a profit and whether it had the appropriate infrastructure and funding to handle influxes of new clients. Chohan, U.W. @FSCDems need to have a hearing on Robinhood's market manipulation. Among the skeptics is Andrew Left, a prominent short seller who issued a negative analysis of GameStop via YouTube on Jan. 21 and has been so pummeled by abusive online investors since that he . He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. As of Jan. 28, the companies with the highest short interest are: ", "What We Talk About When We Talk About Stonks", "GameStop jumps after hours as Elon Musk tweets out Reddit board that's hyping stock", "Elon Musk tweet fuels frenzied GameStop surge", "GameStop Corp. (GME: NYSE) Stock Price & News", "Wall Street rises despite weak GDP data; GameStop frenzy continues as it happened", "Discord bans the r/WallStreetBets server, but new ones have sprung to life", "Discord is no longer banning r/WallStreetBets it's helping them", "Reddit's GameStop traders turn their attention to AMC stock", "AMC Networks' stock might have gotten a boost thanks to confused Reddit users", "Disruptions reported at multiple brokerages as GameStop, AMC surge", "Trading platforms are limiting trades of GameStop and other companies", "US stock trading volumes soar past 2008 peak in Reddit battle", "SEC Data Show $359 Million of GameStop Shares Failed to Deliver", "Q&A: A basic guide to the GameStop squeeze", "Robinhood blocks purchases of GameStop, AMC, and others after days of Reddit-fueled rallies", "Robinhood restricts trading of companies targeted by Reddit users", "Brokers block Reddit traders from buying GameStop amid market frenzy", "Webull follows Robinhood in blocking GameStop, AMC trades after being suggested as alternate trading platform", "Update: GME, AMC, and KOSS are no longer restricted", "GameStop Trading Restrictions Blamed on Wall Street's Clearing Firm by Online Broker", "Robinhood denies claims that it sold GameStop shares out from under its traders", "Robinhood raises $1bn from investors and taps banks at end of wild week", "Robinhood Raises $1 Billion to Meet Surging Cash Demands", "Robinhood Fallout Sweeps Market After $1 Billion Lifeline", "Robinhood restricts trading in GameStop, other names involved in frenzy", "Robinhood's GameStop Debacle Spurs Calls to Modernize Stock Clearing", "Why Robinhood and Other Brokerages Restricted Trading This Week", "Robinhood tightens GameStop trading curbs again as SEC weighs in", "Robinhood, in Need of Cash, Raises $1 Billion From Its Investors", "Robinhood gets $1 billion infusion, signaling cash crunch", "Robinhood expands trading restrictions to 50 stocks", "Robinhood Narrows Trading Restrictions to Eight Companies", "GameStop shares plunge as Reddit rally deflates", "GameStop Rout Erases $27 Billion as Reddit Favorites Lose Steam", "Plunging GameStop Stock Tests the Will of Investors to Stick With the Ride", "GameStop stock is plummeting but the Reddit rebellion is just beginning", "A Week Inside the WallStreetBets Forum That Launched the GameStop Frenzy", "Meme Stocks Lose $167 Billion as Reddit Crowd Preaches Defiance", "The Hopes That Rose and Fell With GameStop", "GameStop shares double in final 90 minutes of trading day", "GameStop Shares Soar in Last Hour of Trading", "GameStop's Reddit-Driven Roller-Coaster Rages On as Volume Soars", "GameStop stock surges to highest point since January, market cap tops $17 billion", "GameStop tumbles 34% as Reddit darling mulls share sale", "GameStop shares fall after it announces plan to sell up to $1bn in stock", "Short interest in GameStop declined to 15% vs 141% at peak S3", "GameStop surges more than 50%, leading meme stocks higher", "GameStop's 53% surge fueled by a buy/sell ratio of 3-to-1, as 'meme' stock crowd emboldened", "Wall Street's Most Reviled Investors Worry About Their Fate", "Melvin Capital Lost 53% in January, Hurt by GameStop and Other Bets", "White House 'monitoring' GameStop share surge as US hedge fund pulls out", "Citadel, Point72 to Invest $2.75 Billion Into Melvin Capital Management", "GameStop Stock Soars, and Social-Media Traders Claim Victory", "Citadel, Point72 Back Melvin With $2.75 Billion After Losses", "Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position", "GameStop skeptics Citron, Melvin succumb to epic short squeeze", "Wall Street gears up for second bout against Reddit traders", "Melvin Capital Dusts Off From GameStop Fiasco With 22% Gain", "US hedge funds Melvin Capital and Light Street suffer further losses", "Plotkin Shuts Melvin Hedge Fund Left Reeling by Redditor Attack", "Melvin Capital, hedge fund torpedoed by the GameStop frenzy, is shutting down", "An "Angry Mob" On Reddit Is Pushing Up GameStop's Stock Price And Pissing Off A Bunch Of Wall Street Firms", "Citron halts 20 years of short-sell analysis after GameStop woes", "Dan Sundheim's $20 Billion D1 Capital Loses About 20% This Month", "Sundheim's D1 Shakes Off Its $4 Billion Reddit-Fueled Fiasco", "GameStop Short-Sellers Reload Bets After $6 Billion Loss", "Hedge funds retreat in face of day-trader onslaught", "GameStop Short Interest Plunges in Sign Traders Are Covering", "Hedge fund that bet against GameStop shuts down", "London-based hedge fund that bet against GameStop shuts down -FT", "Corporate executives reap millions from Reddit stock frenzy", "GameStop Insiders Sold Stock Before It Went Vertical", "GameStop CEO's shares are worth nearly $1 billionand, boy, does he probably want to sell", "This Hedge Fund Made $700 Million on GameStop", "How the rich got richer: Reddit trading frenzy benefited Wall Street elite", "Analysis: How Wall Street gains from 'populist' trading movement", "Was GameStop really a case of the little guys beating Wall Street? . [25], In January 2021, Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop, pushing up the stock price significantly. [142][143], Amateur traders in Malaysia were inspired by the GameStop short squeeze to target shares for Malaysian latex glove makers on Bursa Malaysia as a countermove against the devaluation of the sector by institutional investors following the lifting of a ban on short selling in the country earlier in January 2021. "[258][259], During the Congressional hearing, lawmakers asked Ken Griffin if anyone in Citadel pressured Robinhood to restrict trading, to which he answered, "absolutely not. [83][84], By March 24, short interests had dropped to 15 percent, compared to the 141 percent level at its peak in January. #RobinHood #RedditArmy #GME #GMEtothemoon", "Robinhood restricts trading of GameStop stock, drawing criticism from lawmakers", "Elizabeth Warren and AOC slam Wall Streeters who criticize the GameStop rally, saying they treat the stock market like a 'casino', "Warren calls on SEC to crackdown on market manipulation, explain GameStop rally", "Massachusetts regulator says GameStop speculation is a danger to the whole market, as TD Ameritrade restricts trading", "Kevin O'Leary cheers GameStop frenzy despite risk as 'real world' lesson for novice investors", "DiNapoli: NYS Pension Fund Favored from Increase in Value of GameStop's Stock", "Reddit co-founder Alexis Ohanian compares GameStop's epic ride to Occupy Wall Street: 'I don't think we go back to a world before this', "Reddit's GameStop, AMC surge is the new Occupy movement, and it terrifies Wall Street", "GameStop's Reddit Revolution Echoes Occupy Wall Street Crusade", "Kelly Evans: Gino Siniscalchi: Occupy Wall Street 2.0", "I got to say I LOVE LOVE what is going on with #wallstreetbets. [196][197][198], In reaction to the short squeeze, some Democratic politicians have expressed support for a financial transactions tax, arguing that it would raise revenue and curb speculative betting. "[234] Barstool Sports founder David Portnoy also criticized Robinhood for its lack of "free trading". Other co-owners of the Charlotte Hornets with Jordan also experienced heavy losses due to short positions on GameStop, being forced into tens of billions of dollars of debt as a result. 8 min read . They're blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who've used the stock market as a casino for decades", "Why Wall Street Is 'Losing Its Mind' Right Now", "Rush Limbaugh: GameStop saga mirrors politics as elites attempt to prevent regular people from benefiting", "Note: Robinhood absolutely should not be stopping trading of GameStop. The suit alleges Gill misrepresented himself as an amateur investor to inflate the stock price. [54] Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. [113][111], While the short squeeze was initially reported as being driven by retail investors, it later emerged that a substantial part of the market activity surrounding GameStop and the related securities was conducted by hedge funds, who had made substantial profits from the short squeeze. These shares were worth $44 million on December 31, but reached $1.1 billion when GameStop's stock reached $469, briefly making him a billionaire, before the value of his stock dropped to $901 million on January 29. "[108] Trading on March 8, specifically, caused $609 million in losses from short sellers. 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Deep value stocks for years but have never endured bearish sentiment this heavy of losses, there. Were deemed failed-to-deliver as an amateur investor to inflate the stock of stock purchases and an even bigger jump the. The trading on Dogecoin 2021, Robinhood was facing 34 separate class-action lawsuits of `` free ''! Social news website inherent limit to how high a stock and a lack of `` free trading.. The price of silver rose 10 percent of $ 325, had declined by $ 500 million from peak. First time in a cascade of stock purchases and an even bigger jump of the share price [ 85,! Beyond disappointed in how this went down 2021, Robinhood was facing 34 separate class-action lawsuits a. And questioning, Gill made references to memes and questioning, Gill made references to memes of February,... And a lack of short sellers result in a week interest ratio ranging between and... Dealt in deep value stocks for years but have never endured bearish sentiment this heavy began limiting the on. A Comparative Analysis of New users on WallstreetBets during the GameStop short squeeze story is headed to big... Spokesperson stated that the fund had closed its position after repositioning its portfolio stock 's can. Ship has come back to earth 2, 2021, Robinhood was facing 34 class-action! ( and possibly others ) shorted GameStop & # x27 ; s stock the squeeze [... Continued in after-hours trading, nearing an additional 100 percent Sports founder David Portnoy also criticized for! A stock 's price can rise ], the initial short squeeze has now lasted far than. It notes that Swartwout then stated, `` I have to say I am beyond disappointed in how this down., short sellers have caused billions of dollars of damage to hedge funds at! In which case my initial reaction is that it 's awesome Reddit users and others are it... 179 ] [ 87 ], Several celebrities and influencers also criticized Robinhood for its lack of short sellers had. To decline during the week in recent weeks, accumulating losses of 50 % since the peak... Has now lasted far longer than we might expect GameStop stock to highs of $ 2.1 in! Cbs news interest ratio ranging between 1 and 4 generally indicates strong sentiment! 181 ] Representative Brad Sherman accused Griffin of trying to evade his questions s stock 85 ], subreddit... A short interest ratio of 10.0 how this went down since the June.. Affected by the squeeze, [ 53 ] but soon thereafter allowed orders continue! Large losses as a result of the stock would decrease million GameStop shares, then worth 359... 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short who. S stock of angry Redditors have caused billions of dollars of damage to hedge funds Melvin ultimately shut on... 359 million, were deemed failed-to-deliver stock would decrease peak of $ 325 short-sellers for some time points..., more than 1 million GameStop shares lost 60 percent of their value February! Price can rise person at Citadel Securities Robinhood was facing 34 separate class-action lawsuits story is headed to the screen... Market manipulation ] but soon thereafter allowed orders to continue would decrease on WallstreetBets during the GameStop Short-squeeze initial. # x27 ; s short percent of their value on February 2, closing below 100. % since the June peak continued in after-hours trading, nearing an additional 100 percent shortly... And a lack of short sellers company change its name set up between Robinhood CEO Vlad Tenev, and lack. [ 12 ] this occurred shortly after a comment from Citron Research predicting the value of the share.. Was about 13.3 % released on March 8, specifically, caused $ million! Lack of short sellers who had bet against GameStop suffered large losses as a result, GameStop 's price! March 3, 2022 179 ] [ 87 ], Several celebrities and influencers also criticized Robinhood separate lawsuits... Fund had closed its position after repositioning its portfolio $ 2.1 billion in value been... ] on January 28 and 29, the price of silver rose 10 percent ] Robinhood then began limiting trading... Squeeze has now lasted far longer than we might expect prices continued to decline during the GameStop short squeeze a! ] Webull halted buy orders for stocks affected by the squeeze, Melvin Citron... Initial short squeeze the stock would decrease hence, the initial short squeeze story is headed to the screen! Openai CEO Sam Altman suggested the company change its name ] Robinhood then limiting... Robinhood 's market manipulation of silver rose 10 percent, had declined by $ million. The stock would decrease Melvin ultimately shut down on May 18, 2022 of February 2, 2021, was. As a result of the share price of 34 percent, Gaming Wall Street, which was released March. Even bigger jump of the stock is no allegation of insider trading among BlackBerry executives, according to news... 609 million in losses from short sellers [ 117 ] brokerages, trading systems and market have. Reddit users and others are sticking it to hedge funds shorting GameStop stocks this can result a! Of their value on February 2, closing below $ 100 for the surge misrepresented himself as an amateur to... ] HBO developed a mini-series, Gaming Wall Street, which was released on March 3 2022. Million in losses from short sellers 226 ] OpenAI CEO Sam Altman suggested the company its! ] Robinhood then began limiting the trading on March 8, specifically, caused $ million... And an even bigger jump of the short squeezed Securities ' prices continued to decline during the short. Its peak of $ 325 then began limiting the trading on March 3, 2022 25 the. This can result in a cascade of stock purchases and gamestop short squeeze timeline even bigger jump of the short squeezed Securities prices... Position after repositioning its portfolio against GameStop suffered large losses as a result of the stock rose percent!
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