What did Redditors do to Wall Street?

What did Redditors do to 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.

How did Redditors break 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.

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.

What is the GameStop effect?

And if retail investors continue to hold greater sway, the result will likely be sharper swings for some stocks than they would have had otherwise, if not to GameStop’s spectacular degree. …

How much money did Wall Street lose?

Wall Street investors are sitting on estimated year-to-date losses of US$70.87 billion on their bets against U.S. companies following massive surges in some of the heavily shorted shares, data from analytics firm Ortex showed on Thursday.

What is the GameStop controversy about?

Popular investing app Robinhood became the focus of the controversy after it decided to freeze trades for GameStop on Jan. 28. Shares of the video game retailer spiked after traders on Reddit began frantically buying the company’s stock. GameStop shares have since came crashing down only to shoot up once again.

Is Walltreetbets R Real?

r/wallstreetbets, also known as WallStreetBets or WSB, is a subreddit where participants discuss stock and option trading.

How many views does Reddit’s wall streetbets get?

Meantime, traffic to the Reddit community at the center of the drama, r/WallStreetBets, is breaking records. Mashable reported that r/WallStreetBets counted 73 million page views for its discussion boards on Tuesday, Jan. 26, as stocks began to swing.

What is Reddit doing to the stock market?

The Reddit community’s actions have had such an impact that TD Ameritrade took the extraordinary step last week to limit share trading on Game Stop and AMC stocks, “out of an abundance of caution amid unprecedented market conditions.” Nasdaq as well warned that it will halt trading on stocks it thinks are being manipulated by social media.

Who is the founder of the Reddit community?

Jaime Rogozinski, the apparent founder of the Reddit community at the heart of all this, told The Wall Street Journal it’s like “a train wreck happening in real time.” Keith Gill, the trader in the Reddit community who helped kick off the battle, told the paper he “didn’t expect this.”

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