As of January 29, Robinhood still imposes limits on the trading of GameStop, AMC and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Motor Cars and Starbucks Corporation.
As of January 29, Robinhood still imposes limits on the trading of GameStop, AMC and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Motor Cars and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities.
As of January 29, Robinhood still imposes limits on the trading of GameStop, AMC and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Motor Cars and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities.
As of January 29, Robinhood still imposes limits on the trading of GameStop, AMC, and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Motor Cars and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities.
GME Resources, an Australian mining company, saw their shares increase over 50% during intraday trading, closing with a 13.3% increase on January 28. This was speculated to have occurred as a joke given the identical ticker symbols on different exchanges.
GME Resources, an Australian mining company, saw their shares increase over 50% during intraday trading, closing with a 13.3% increase on January 28. This was speculated to have occurred as a joke or mistake given the identical ticker symbols on different exchanges.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin stated to CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, 2021, it was reported that short sellers lost a total of $6 billion due to the squeeze. Melvin Capital, founded in 2014 by Gabriel Plotkin, said it does not comment on positions and trading, yet its own spokesperson stated that Melvin Capital closed its position after repositioning its portfolio, an attempt to influence retail investors to sell so the hedge fund could cover their shorts.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin stated to CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, 2021, it was reported that short sellers lost a total of $6 billion due to the squeeze. On 27 January 2021, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin stated to CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, 2021, it was reported that short sellers lost a total of $6 billion due to the squeeze. On 27 January 2021, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin stated to CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio.
Following the stock market surge, futures for silver began to rapidly increase as well. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior as a result of the federal response to the pandemic and stated his opposition to capital gains tax increases, saying "This fair share is a bullshit concept. It's just a way of attacking wealthy people, and I think it's inappropriate ... We've all got to work together and pull together." Senator Bernie Sanders (I-VT) responded to Cooperman in a tweet, saying "Oh look, another billionaire is mad that he might have to pay more taxes while children in America go hungry and veterans sleep on the street. Cry me a river."
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior as a result of the federal response to the pandemic and stated his opposition to capital gains tax increases, saying "This fair share is a bullshit concept. It's just a way of attacking wealthy people, and I think it's inappropriate ... We've all got to work together and pull together."
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior as a result of the federal response to the pandemic and stated his opposition to capital gains tax increases, saying "This fair share is a bullshit concept. It's just a way of attacking wealthy people, and I think it's inappropriate ... We've all got to work together and pull together."
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior as a result of the federal response to the pandemic and stated his opposition to capital gains tax increases, saying "This fair share is a bullshit concept. It's just a way of attacking wealthy people, and I think it's inappropriate ... We've all got to work together and pull together." Senator Bernie Sanders (I-VT) responded to Cooperman in a tweet, saying "Oh look, another billionaire is mad that he might have to pay more taxes while children in America go hungry and veterans sleep on the street. Cry me a river."
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin stated to CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Losses on short positions in U.S. firms topped $70 billion. Ortex data showed that as of January 27, there were loss-making short positions on more than 5,000 U.S. firms. Following the stock market surge, futures for silver began to rapidly increase as well. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin stated to CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets. Losses on short positions in U.S. firms topped $70 billion. Ortex data showed that as of January 27, there were loss-making short positions on more than 5,000 U.S. firms. Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10% when messages circulated on the subreddit urging retial investors to drive up the price. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10% when messages circulated on the subreddit urging retial investors to drive up the price. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10% when messages circulated on the subreddit urging retail investors to drive up the prices of metals. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
Senator Elizabeth Warren (D-MA) called out the large investors and hedge funds who were criticizing the rally, saying they "have treated the stock market like their own personal casino while everyone else pays the price". Warren also called on the U.S. Securities and Exchange Commission to take a bigger stand, saying they must "act to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders" and "to have a healthy stock market, you've got to have a cop on the beat." Similar sentiments were expressed by Representative Alexandria Ocasio-Cortez (D-NY), Senator Ted Cruz (R-TX), Representative Rashida Tlaib (D-MI), Representative Ted Lieu (D-CA), Representative Marjorie Taylor Greene (R-GA), CNN anchor Jake Tapper, Fox Business host Charles Payne, conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr. Some lawmakers, such as Ocasio-Cortez, Cruz, and Representative Ro Khanna (D-CA) also expressed frustration at Robinhood and others' decisions to close individual trading of GameStop, among other stocks.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, including Representative Alexandria Ocasio-Cortez (D-NY), Senator Ted Cruz (R-TX), Representative Rashida Tlaib (D-MI), Representative Ted Lieu (D-CA), Representative Marjorie Taylor Greene (R-GA), CNN anchor Jake Tapper, Fox Business host Charles Payne, conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr. Some lawmakers, such as Ocasio-Cortez, Cruz, and Representative Ro Khanna (D-CA) also expressed frustration at Robinhood and others' decisions to close individual trading of GameStop, among other stocks. Senator Elizabeth Warren (D-MA) criticized both the short sellers and the buyers, and argued that more regulation was needed. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". She also called on the U.S. Securities and Exchange Commission to take a bigger stand, saying they must "act to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders" and "to have a healthy stock market, you've got to have a cop on the beat."
Better Markets President and CEO Dennis Kelleher stated “Unfortunately, it should be another ‘flash crash’ moment that wakes people up to their false sense of security that our markets are functioning properly when they’re full of fraud, manipulation and conflicts of interest that benefit the big players and screw the buy-side and the retail players,” advocating for greater Wall Street oversight.
Bryan Corbett, president and CEO of the Managed Funds Association, which represents that industry, stated "The hedge fund industry supports greater access to financial markets ... Essential fairness for all investors requires that there be an orderly market with an effective price discovery function. It fosters stability, reduces risk and encourages market confidence.”
In a interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on wild, reckless, unfounded speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... They don't really understand what they're doing. I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian politician, businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, instead remarking "They’re learning about the risks of the market. ... We forgot to educate them in high school, so let them learn in the real world, which is even better." O'Leary said that hedge funds now faced the new risk that "social media vigilantes" would target them, which would caution them from aggressively selling short stocks. O'Leary emphasized that the virality of the GameStop trade—aided partly by zero-commission brokerage apps such as Robinhood—had sparked a growing interest in investing.
In a interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian politician, businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, remarking "They’re learning about the risks of the market. ... We forgot to educate them in high school, so let them learn in the real world, which is even better." O'Leary said that hedge funds now faced the new risk that "social media vigilantes" would target them, which would caution them from aggressively selling short stocks. O'Leary emphasized that the virality of the GameStop trade—aided partly by zero-commission brokerage apps such as Robinhood—had sparked a growing interest in investing.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!" along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, excluding extended-hours trading, is $483.00 (nearly 190 times the record low of $2.57).
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!" along with a link to the r/wallstreetbets subreddit ("stonk" is internet slang for "stock"). A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, excluding extended-hours trading, is $483.00 (nearly 190 times the record low of $2.57).
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior as a result of the federal response to the pandemic and stated his opposition to capital gains tax increases, saying "This fair share is a bullshit concept. It's just a way of attacking wealthy people, and I think it's inappropriate ... We've all got to work together and pull together." Senator Bernie Sanders (I-VT) responded to Cooperman in a tweet, saying "Oh look, another billionaire is mad that he might have to pay more taxes while children in America go hungry and veterans sleep on the street. Cry me a river."
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
Better Markets President and CEO Dennis Kelleher stated “Unfortunately, it should be another ‘flash crash’ moment that wakes people up to their false sense of security that our markets are functioning properly when they’re full of fraud, manipulation and conflicts of interest that benefit the big players and screw the buy-side and the retail players,” advocating for greater Wall Street oversight.
Bryan Corbett, president and CEO of the Managed Funds Association, which represents that industry, stated "The hedge fund industry supports greater access to financial markets ... Essential fairness for all investors requires that there be an orderly market with an effective price discovery function. It fosters stability, reduces risk and encourages market confidence.”
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800%. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800%. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users. Robinhood sparked controversy by banning trading on Dogecoin Cryptocurrency trading service Coinbase also faced multiple connectivity issues.
On January 27, Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. The community surged by more than 1.5 million users to 6 million members on January 29. r/wallstreetbets was the fastest-growing subreddit in the week of the short squeeze, increasing its members by more than 2 million between January 22 and January 29.
On January 27, Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/wallstreetbets was the fastest-growing subreddit, as the community surged by more than 1.5 million users to 6 million members on January 29.
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manger who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman, who, according to Bloomberg News, owns over 2.3 million shares in the company, had his shares which were worth $44 million on December 31 climb and hit $1.1 billion when GameStop's stock reached $469, briefly making Sherman a billionaire, before his stock prices lowered to $901 million on January 29. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outsider information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman, who, according to Bloomberg News, owns over 2.3 million shares in the company, had his shares which were worth $44 million on December 31 climb and hit $1.1 billion when GameStop's stock reached $469, briefly making Sherman a billionaire, before his stock prices lowered to $901 million on January 29. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outsider information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800%. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users. Robinhood sparked controversy by banning trading on Dogecoin Cryptocurrency trading service Coinbase also faced multiple connectivity issues.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800%. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users. Robinhood sparked controversy by banning trading on Dogecoin. Cryptocurrency trading service Coinbase also faced multiple connectivity issues.
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. Citron Research stated in an interview held by Andrew Left that the company has covered the majority of its short positions in the range of $90 per share at a loss of 100%, now having a small manageable position. Due to the enormous losses, Left stated that Citron Research would discontinue offering short-sell analysis after 20 years of service, and instead focus on "long side multibagger opportunities for individual investors".The Wall Street Journal reported that Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children and used "threatening, profane and personal language".
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. Citron Research stated in an interview held by Andrew Left that the company has covered the majority of its short positions in the range of $90 per share at a loss of 100%, now having a small manageable position. Due to the enormous losses, Left stated that Citron Research would discontinue offering short-sell analysis after 20 years of service, and instead focus on "long side multibagger opportunities for individual investors". The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language".
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10% when messages circulated on the subreddit urging retail investors to drive up the prices of metals. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin stated to CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) its position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
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. Citron Research stated in an interview held by Andrew Left that the company has covered the majority of its short positions in the range of $90 per share at a loss of 100%, now having a small manageable position. Due to the enormous losses, Left stated that Citron Research would discontinue offering short-sell analysis after 20 years of service, and instead focus on "long side multibagger opportunities for individual investors".
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. In an interview, he claimed that the company had covered the majority of its short positions in the range of $90 per share at a loss of 100%, retaining a small, manageable position. Due to the enormous losses, Left stated that Citron Research would discontinue offering short-sell analysis after 20 years of service, and instead focus on "long side multibagger opportunities for individual investors".
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman, who, according to Bloomberg News, owns over 2.3 million shares in the company, had his shares which were worth $44 million on December 31 climb and hit $1.1 billion when GameStop's stock reached $469, briefly making Sherman a billionaire, before his stock prices lowered to $901 million on January 29. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outsider information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman owns over 2.3 million shares in the company, according to Bloomberg News. 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 prices lowered to $901 million on January 29. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outsider information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. A surge qualified by some users of r/wallstreetbets as a false flag operation.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. A surge qualified by some users of r/wallstreetbets as a false flag operation.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
Better Markets President and CEO Dennis Kelleher stated “Unfortunately, it should be another ‘flash crash’ moment that wakes people up to their false sense of security that our markets are functioning properly when they’re full of fraud, manipulation and conflicts of interest that benefit the big players and screw the buy-side and the retail players,” advocating for greater Wall Street oversight. Bryan Corbett, president and CEO of the Managed Funds Association, which represents that industry, stated "The hedge fund industry supports greater access to financial markets ... Essential fairness for all investors requires that there be an orderly market with an effective price discovery function. It fosters stability, reduces risk and encourages market confidence.” In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight year high. GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double digit percentages.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight year high. GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double digit percentages.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double digit percentages.
Better Markets President and CEO Dennis Kelleher stated “Unfortunately, it should be another ‘flash crash’ moment that wakes people up to their false sense of security that our markets are functioning properly when they’re full of fraud, manipulation and conflicts of interest that benefit the big players and screw the buy-side and the retail players,” advocating for greater Wall Street oversight. Bryan Corbett, president and CEO of the Managed Funds Association, which represents that industry, stated "The hedge fund industry supports greater access to financial markets ... Essential fairness for all investors requires that there be an orderly market with an effective price discovery function. It fosters stability, reduces risk and encourages market confidence.” In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!" along with a link to the r/wallstreetbets subreddit ("stonk" is internet slang for "stock"). A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, excluding extended-hours trading, is $483.00 (nearly 190 times the record low of $2.57).
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, excluding extended-hours trading, is $483.00 (nearly 190 times the record low of $2.57). Cite error: There are tags or Cite error: There are <ref> tags on this page without content in them (see the help page). templates on this page, but the references will not show without a
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, excluding extended-hours trading, is $483.00 (nearly 190 times the record low of $2.57). Cite error: There are tags or Cite error: There are <ref> tags on this page without content in them (see the help page). templates on this page, but the references will not show without a
template or
template (see the help page).
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!" along with a link to the r/wallstreetbets subreddit ("stonk" is internet slang for "stock"). A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, excluding extended-hours trading, is $483.00 (nearly 190 times the record low of $2.57).
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to nearly $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to over $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double digit percentages.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double digit percentages. Some reddit users deny any involvement on the part of wallstreetbets in the increasing price of silver.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double digit percentages. Some reddit users deny any involvement on the part of wallstreetbets in the increasing price of silver.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double digit percentages. Some reddit users deny any involvement on the part of r/wallstreetbets in the increasing price of silver.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to over $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to nearly $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged. Gill stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged. Gill stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to nearly $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to over $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to over $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!" along with a link to the r/wallstreetbets subreddit ("stonk" is internet slang for "stock"). A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, excluding extended-hours trading, is $483.00 (nearly 190 times the record low of $2.57).
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!" along with a link to the r/wallstreetbets subreddit ("stonk" is internet slang for "stock"). A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In premarket trading hours, it briefly hit $500 the same day.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze increased the retailer's stock price by almost 190 times from its record low of $2.57 to $500 per share, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to $500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. By January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to $500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of the Internet forum r/wallstreetbets on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on Reddit. Short sellers are exposed to a risk of short squeezing, which occurs when the shorted stock jumps in value, due, for instance, to a sudden piece of favorable news. Short sellers are then forced to buy back the stock they had initially sold, in an effort to keep their losses from mounting. Purchasing the stock to cover their short positions raises the price of the shorted stock, thus triggering more short sellers to cover their positions by buying the stock. This can result in a cascade of stock purchases and an even bigger jump of the share price. 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. In an interview, he claimed that the company had covered the majority of its short positions in the range of $90 per share at a loss of 100%, retaining a small, manageable position. Due to the enormous losses, Left stated that Citron Research would discontinue offering short-sell analysis after 20 years of service, and instead focus on "long side multibagger opportunities for individual investors". 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. Bloomberg News had previously reported that 40% of Robinhood's revenue was derived from selling customer orders to marketmaking firms including Citadel Securities and Two Sigma Securities, in a practice known as payment for order flow. The Washington Post reported that Robinhood routed more than half of its customer orders to Citadel, which was its largest market making partner by volume. Citadel Securities is the sister company to Citadel LLC, which along with Point72 Asset Management invested $2.75 billion into Melvin Capital. As Robinhood restricted trading of GameStop shares, thereby limiting the growth of the stock's value, users alleged that Citadel Securities directed Robinhood to do so. Citadel Securities stated that they did not instruct any brokerage to suspend or otherwise limit trading, and Robinhood denied that it had been pressured by Citadel. GME Resources, an Australian mining company, saw their shares increase over 50% during intraday trading, closing with a 13.3% increase on January 28. This was speculated to have occurred as a joke or mistake given the identical ticker symbols on different exchanges. 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. Top Glove, Hartalega and Supermax respectively recorded increases in shares as high as 15%, 10% and 9.2% during intraday trading on January 29, before closing with increases of 8.5%, 5.4% and 3.7%. The rally call was reportedly organized from r/bursabets, a Malaysian offshoot of r/wallstreetbets named after the Malaysian stock exchange. Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10%. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eightyear high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by doubledigit percentages. Some reddit users deny any involvement on the part of r/wallstreetbets in the increasing price of silver.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on Reddit. Short sellers are exposed to a risk of short squeezing, which occurs when the shorted stock jumps in value due, for instance, to a sudden piece of favorable news. Short sellers are then forced to buy back the stock they had initially sold, in an effort to keep their losses from mounting. Purchasing the stock to cover their short positions raises the price of the shorted stock, thus triggering more short sellers to cover their positions by buying the stock. This can result in a cascade of stock purchases and an even bigger jump of the share price. 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. In an interview, he claimed that the company had covered the majority of its short positions in the range of $90 per share at a loss of 100 percent, retaining a small, manageable position. Due to the enormous losses, Left stated that Citron Research would discontinue offering short-sell analysis after 20 years of service, and instead focus on "long side multibagger opportunities for individual investors". 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. Bloomberg News had previously reported that 40 percent of Robinhood's revenue was derived from selling customer orders to market-making firms including Citadel Securities and Two Sigma Securities, in a practice known as payment for order flow. The Washington Post reported that Robinhood routed more than half of its customer orders to Citadel, which was its largest market making partner by volume. Citadel Securities is the sister company to Citadel LLC, which along with Point72 Asset Management invested $2.75 billion into Melvin Capital. As Robinhood restricted trading of GameStop shares, thereby limiting the growth of the stock's value, users alleged that Citadel Securities directed Robinhood to do so. Citadel Securities stated that they did not instruct any brokerage to suspend or otherwise limit trading, and Robinhood denied that it had been pressured by Citadel. GME Resources, an Australian mining company, saw their shares increase more than 50 percent during intraday trading, closing with a 13.3-percent increase on January 28. This was speculated to have occurred as a joke or mistake given the identical ticker symbols on different exchanges. 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. 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. The rally call was reportedly organized from r/bursabets, a Malaysian offshoot of r/wallstreetbets named after the Malaysian stock exchange. Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Some Reddit users deny any involvement on the part of r/wallstreetbets in the increasing price of silver.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on Reddit.
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Some Reddit users deny any involvement on the part of r/wallstreetbets in the increasing price of silver.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Users on r/wallstreetbets deny involvement in the increasing price of silver, blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
Many other heavily shorted securities also saw price increases. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies also increased.
Many other heavily shorted securities also saw price increases. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures also increased.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!" along with a link to the r/wallstreetbets subreddit ("stonk" is internet slang for "stock"). A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In premarket trading hours, it briefly hit $500 the same day.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In premarket trading hours, it briefly hit $500 the same day. Cite error: There are tags or Cite error: There are <ref> tags on this page without content in them (see the help page). templates on this page, but the references will not show without a
Cite error: There are tags or Cite error: There are <ref> tags on this page without content in them (see the help page). templates on this page, but the references will not show without a
In January 2021, a short squeeze of the stock of the American video-game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American videogame retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
Three different federal lawsuits have been filed from Tampa, Florida regarding the incident. In all, at least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to over US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
As of January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year and further dropped to 53% by the end of the month. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year and further dropped to 53% by the end of the month. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year and further dropped to 53% ($4.5 billion) by the end of the month. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year and further dropped to 53% ($4.5 billion) by the end of the month. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
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. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. This is in contrast with taking a long position (simply owning the stock), where the investor's loss is limited to the cost of their initial investment. One way to limit such losses is to use hedging, such as to buy call options at strike prices that are above the current market price. On January 22, 2021, approximately 140 percent of GameStop's float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. 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.
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. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. This is in contrast with taking a long position (simply owning the stock), where the investor's loss is limited to the cost of their initial investment. On January 22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. 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.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In premarket trading hours, it briefly hit $500 the same day.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In premarket trading hours, it briefly hit over $500 the same day.
In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasingly short exposure. Basically, market makers seek to profit via arbitrage, by ensuring the prices of stocks and options are linked, thereby keeping the market efficient. One role of market makers is to write (i.e. create and sell) options to investors seeking to buy them, and buy shares of the stock to maintain delta-hedged position overall, thereby profiting off price discrepancies between the options market and the stock market while remaining agnostic regarding price fluctuations.
In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasingly short exposure.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to over US$500 per share, almost 190 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to over US$500 per share, almost 200 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
By January 28, 2021, Melvin Capital, an investment fund shorting GameStop, had lost 30 percent of its value since the start of the year Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments.. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments.. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. On January 31, The Wall Street Journal reported that Melvin had lost 53 percent of its value, though noted that new investors would sign up the next day, including new and existing clients. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
On February 1, GameStop short interests fell to 39% of free-floating shares, from 114% in mid-January, according to IHS Markit. The data was described by Bloomberg as "an early sign that the short squeeze [...] has progressed"
On February 1, GameStop short interests fell to 39% of free-floating shares, from 114% in mid-January, according to IHS Markit. The data was described by Bloomberg as "an early sign that the short squeeze [...] has progressed"
On February 1, GameStop short interests fell to 39% of free-floating shares, from 114% in mid-January, according to IHS Markit. The data was described by Bloomberg as "an early sign that the short squeeze [...] has progressed"
In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to over US$500 per share, almost 200 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to over US$500 per share, almost 200 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
Vlad Tenev, Robinhood's CEO, was reported to be testifying before the United States House Committee on Financial Services, scheduled for February 18.
Vladimir Tenev, Robinhood's CEO, was reported to be testifying before the United States House Committee on Financial Services, scheduled for February 18.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds. The short squeeze caused the retailer's stock price to rise to over US$500 per share, almost 200 times its record low of $2.57, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, over 29 times the January low of $17.15, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, over 29 times the January low of $17.15, causing large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, over 29 times the January low of $17.15. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, over 29 times the January low of $17.15. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$483.00 per share, roughly 188 times the 52 week low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$483.00 per share, roughly 188 times the 52 week low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$483.00 per share, roughly 188 times the yearly low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$483.00 per share, roughly 188 times the yearly low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In premarket trading hours, it briefly hit over $500 the same day.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused the price to rise further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit. On January 28, multiple brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Class-action lawsuits were filed against Robinhood in the U.S. District Courts for the Southern District of New York and the Northern District of Illinois. Many other heavily shorted securities also saw price increases. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures also increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases. On January 28, multiple brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Class-action lawsuits were filed against Robinhood in the U.S. District Courts for the Southern District of New York and the Northern District of Illinois. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other exchanges soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations.
On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations.
In 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write with Scott Galloway potentially signing on as a script consultant. Noah Cenineo is also planned to star in the film.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Users on r/wallstreetbets deny involvement in the increasing price of silver, blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Some users on r/wallstreetbets deny involvement in the increasing price of silver, blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged. Gill stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
WallStreetBets (r/wallstreetbets) is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged. Gill stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases. WallStreetBets (r/wallstreetbets) is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged. Gill stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases. r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged. Gill stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
In 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write with Scott Galloway potentially signing on as a script consultant. Noah Cenineo is also planned to star in the film.
In 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film.
In 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. Separately, Metro-Goldwyn-Mayer acquired the rights to make a movie of Ben Mezrich's upcoming book The Antisocial Network, which would chronicle the events of the short squeeze.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500.00 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver took gains of 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Some users on r/wallstreetbets deny involvement in the increasing price of silver, blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver rose 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Some users on r/wallstreetbets deny involvement in the increasing price of silver, instead blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800%. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users. Robinhood sparked controversy by banning trading on Dogecoin. Cryptocurrency trading service Coinbase also faced multiple connectivity issues.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?] Cryptocurrency trading service Coinbase also faced multiple connectivity issues.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?] Cryptocurrency trading service Coinbase also faced multiple connectivity issues.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?]
Losses on short positions in U.S. firms topped $70 billion. Ortex data showed that as of January 27, there were loss-making short positions on more than 5,000 U.S. firms.
Losses on short positions in U.S. firms topped $70 billion. Ortex data[clarification needed] showed that as of January 27, there were loss-making short positions on more than 5,000 U.S. firms.
On February 1, GameStop short interests fell to 39% of free-floating shares, from 114% in mid-January, according to IHS Markit. The data was described by Bloomberg as "an early sign that the short squeeze [...] has progressed"
On February 1, GameStop short interests fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit.[clarification needed] The data was described by Bloomberg News as "potentially an early sign that the short squeeze that propelled GameStop... has progressed."
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. Separately, Metro-Goldwyn-Mayer acquired the rights to make a movie of Ben Mezrich's upcoming book The Antisocial Network, which would chronicle the events of the short squeeze.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. Separately, Metro-Goldwyn-Mayer (MGM) acquired the rights to make a movie of Ben Mezrich's proposed book, The Antisocial Network, aimed at chronicling the recent events on Wall Street.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film.Separately, Metro-Goldwyn-Mayer (MGM) acquired the rights to make a movie of Ben Mezrich's proposed book, The Antisocial Network, aimed at chronicling the recent events on Wall Street.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. Separately, Metro-Goldwyn-Mayer (MGM) acquired the rights to make its own movie based on Ben Mezrich's book proposal for The Antisocial Network, aimed at chronicling the recent events on Wall Street.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, Keith Gill, known on the site as u/DeepFuckingValue and on other social media accounts as "Roaring Kitty", had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. 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. Gill shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged. Gill stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, DeepFuckingValue, (known on YouTube as "Roaring Kitty") had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. DeepFuckingValue, 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. He shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged; he stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the squeeze, there had been interest in GameStop (ticker symbol: GME) on r/wallstreetbets. One user, DeepFuckingValue, (known on YouTube as "Roaring Kitty") had purchased around $53,000 in call options on GME in 2019 and saw his position rise to a value of $48 million by January 27, 2021. DeepFuckingValue, 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. He shared his investment on r/wallstreetbets and provided regular updates on its performance, including the times when the investment had plunged; he stated on January 29 that he "thought this trade would be successful" but "never expected what happened over the last week", adding that he planned to continue his YouTube channel and potentially buy a house. On January 27, Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/wallstreetbets was the fastest-growing subreddit, as the community surged by more than 1.5 million users to 6 million members on January 29.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the big squeeze, there had been interest in GameStop (ticker symbol: GME) in the community. One user, DeepFuckingValue (known on YouTube as "Roaring Kitty"), had purchased around $53,000 in call options on GME in 2019; he saw his position rise to a value of $48 million by January 27, 2021. This user, revealed to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/wallstreetbets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the big squeeze, there had been interest in GameStop (ticker symbol: GME) in the community. One user, DeepFuckingValue (known on YouTube as "Roaring Kitty"), had purchased around $53,000 in call options on GME in 2019; he saw his position rise to a value of $48 million by January 27, 2021. This user, revealed to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the big squeeze, there had been interest in GameStop (ticker symbol: GME) in the community. One user, DeepFuckingValue (known on YouTube as Roaring Kitty), had purchased around $53,000 in call options on GameStop's stock in 2019; he saw his position rise to a value of $48 million by January 27, 2021. This user, revealed to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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.
r/wallstreetbets is a community, or subreddit, on the social news website Reddit. The subreddit is known for high-risk stock transactions. Even before the big squeeze, there had been interest in GameStop (ticker symbol: GME) in the community. One user, DeepFuckingValue (known on YouTube as Roaring Kitty), had purchased around $53,000 in call options on GameStop's stock in 2019; he saw his position rise to a value of $48 million by January 27, 2021. This user, revealed to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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.
The subreddit r/wallstreetbets is a community on Reddit social news website that is known for its discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME) in the community. One user, DeepFuckingValue (known on YouTube and Twitter as Roaring Kitty), had purchased around $53,000 in call options on GameStop's stock in 2019; he saw his position rise to a value of $48 million by January 27, 2021. This user, revealed to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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.
The subreddit r/wallstreetbets is a community on Reddit social news website that is known for its discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME) in the community. One user, DeepFuckingValue (known on YouTube and Twitter as Roaring Kitty), had purchased around $53,000 in call options on GameStop's stock in 2019; he saw his position rise to a value of $48 million by January 27, 2021. This user, revealed to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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.
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). One user, DeepFuckingValue (known on YouTube and Twitter as Roaring Kitty), had purchased around $53,000 in call options on GameStop's stock in 2019 (he saw his position rise to a value of $48 million by January 27, 2021). This user, revealed by Reuters to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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.
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). One user, DeepFuckingValue (known on YouTube and Twitter as Roaring Kitty), had purchased around $53,000 in call options on GameStop's stock in 2019 (he saw his position rise to a value of $48 million by January 27, 2021). This user, revealed by Reuters to be 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. He shared information regarding his investment on the subreddit and provided regular updates on its performance, including times when the investment had plunged; he stated on January 29, 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.
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue was revealed by Reuters to be a 34-year-old marketing professional and Chartered Financial Analyst (CFA) from Massachusetts. He began investing in GameStop during the summer of 2019, after believing the stock to be undervalued, and shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases. The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue was revealed by Reuters to be a 34-year-old marketing professional and Chartered Financial Analyst (CFA) from Massachusetts. He began investing in GameStop during the summer of 2019, after believing the stock to be undervalued, and shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/wallstreetbets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases. The subreddit WallStreetBets (r/wallstreetbets) is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue was revealed by Reuters to be a 34-year-old marketing professional and Chartered Financial Analyst (CFA) from Massachusetts. He began investing in GameStop during the summer of 2019, after believing the stock to be undervalued, and shared information regarding his investment on the subreddit WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. WallStreetBets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
The subreddit WallStreetBets (r/wallstreetbets) is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue was revealed by Reuters to be a 34-year-old marketing professional and Chartered Financial Analyst (CFA) from Massachusetts. He began investing in GameStop during the summer of 2019, after believing the stock to be undervalued, and shared information regarding his investment on the subreddit WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. WallStreetBets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue was revealed by Reuters to be a 34-year-old marketing professional and Chartered Financial Analyst (CFA) from Massachusetts. He began investing in GameStop during the summer of 2019, after believing the stock to be undervalued, and shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/WallStreetBets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
Due to the COVID-19 pandemic, consumer spending in general was drastically lower than normal. There was also more money in the hands of investors as a result of historically low interest rates and an inability to spend their money elsewhere. Other suggested factors included a culture of taking massive gambles on the stock market in the hopes of making money quickly, anger of some investors towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008, or the general democratization of the stock market coupled with the ability of retail traders to communicate instantaneously through social media.
Due to the COVID-19 pandemic, consumer spending in general was drastically lower than normal. There was also more money in the hands of investors as a result of historically low interest rates and an inability to spend their money elsewhere. Other suggested factors included a culture of taking massive gambles on the stock market in the hopes of making money quickly, anger of some investors towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008, or the general democratization of the stock market coupled with the ability of retail traders to communicate instantaneously through social media.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue was revealed by Reuters to be a 34-year-old marketing professional and Chartered Financial Analyst (CFA) from Massachusetts. He began investing in GameStop during the summer of 2019, after believing the stock to be undervalued, and shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue, 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. He shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021). DeepFuckingValue, 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. He shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021. DeepFuckingValue, 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. He shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue (and known as Roaring Kitty on YouTube and Twitter), purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021. DeepFuckingValue, 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. He shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue and known as Roaring Kitty on YouTube and Twitter, purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021. DeepFuckingValue, 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. He shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
Following the stock market surge, futures for silver began to rapidly increase as well. On January 28 and 29, the price of silver rose 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Some users on r/wallstreetbets deny involvement in the increasing price of silver, instead blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
Following the stock market surge, futures for silver began to rapidly increase as well, although later news reports clarified that it was unclear who was behind the rise. On January 28 and 29, the price of silver rose 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Users on r/wallstreetbets deny involvement in the increasing price of silver, instead blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
Losses on short positions in U.S. firms topped $70 billion. Ortex data[clarification needed] showed that as of January 27, there were loss-making short positions on more than 5,000 U.S. firms.
Losses on short positions in U.S. firms topped $70 billion. Data from equity analytics firm Ortex showed that as of January 27, there were loss-making short positions on more than 5,000 U.S. firms.
On February 1, GameStop short interests fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit.[clarification needed] The data was described by Bloomberg News as "potentially an early sign that the short squeeze that propelled GameStop... has progressed."
On February 1, GameStop short interests fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit. The data was described by Bloomberg News as "potentially an early sign that the short squeeze that propelled GameStop... has progressed."
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (ticker symbol: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME, FWB: GS2C) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME, FWB: GS2C) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, including Representative Alexandria Ocasio-Cortez (D-NY), Senator Ted Cruz (R-TX), Representative Rashida Tlaib (D-MI), Representative Ted Lieu (D-CA), Representative Marjorie Taylor Greene (R-GA), CNN anchor Jake Tapper, Fox Business host Charles Payne, conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr. Some lawmakers, such as Ocasio-Cortez, Cruz, and Representative Ro Khanna (D-CA) also expressed frustration at Robinhood and others' decisions to close individual trading of GameStop, among other stocks.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, including Representative Alexandria Ocasio-Cortez (D-NY), Senator Ted Cruz (R-TX), Representative Rashida Tlaib (D-MI), Representative Ted Lieu (D-CA), Representative Marjorie Taylor Greene (R-GA), Fox Business host Charles Payne, conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr. Some lawmakers, such as Ocasio-Cortez, Cruz, and Representative Ro Khanna (D-CA) also expressed frustration at Robinhood and others' decisions to close individual trading of GameStop, among other stocks.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, including Representative Alexandria Ocasio-Cortez (D-NY), Senator Ted Cruz (R-TX), Representative Rashida Tlaib (D-MI), Representative Ted Lieu (D-CA), Representative Marjorie Taylor Greene (R-GA), Fox Business host Charles Payne, conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr. Some lawmakers, such as Ocasio-Cortez, Cruz, and Representative Ro Khanna (D-CA) also expressed frustration at Robinhood and others' decisions to close individual trading of GameStop, among other stocks.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Alexandria Ocasio-Cortez (D-NY), Rashida Tlaib (D-MI), Ted Lieu (D-CA), Marjorie Taylor Greene (R-GA) and Ro Khanna (D-CA), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
The song ’We Like The Stock!’ by the artist ahjteam, influenced by the GameStop short events and Reddit wallstreetbets memes, was released on February 1, 2021.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors. Similar sentiments condemning the short squeeze as a "fraud" organized by a "flash mob", emphasizing the need for market stability and importance of short sellers, and calling for an S.E.C investigation were expressed by Better Markets President and CEO Dennis Kelleher, Bryan Corbett, president and CEO of the Managed Funds Association, as well as the Alternative Investment Management Association.
The song ’We Like The Stock!’ by the artist ahjteam, influenced by the GameStop short events and Reddit wallstreetbets memes, was released on February 1, 2021.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors. Similar sentiments condemning the short squeeze as a "fraud" organized by a "flash mob", emphasizing the need for market stability and importance of short sellers, and calling for an S.E.C investigation were expressed by Better Markets President and CEO Dennis Kelleher, Bryan Corbett, president and CEO of the Managed Funds Association, as well as the Alternative Investment Management Association.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors. Similar sentiments condemning the short squeeze as a "fraud" organized by a "flash mob", emphasizing the need for market stability and importance of short sellers, and calling for an S.E.C investigation were expressed by Better Markets President and CEO Dennis Kelleher, Bryan Corbett, president and CEO of the Managed Funds Association, as well as the Alternative Investment Management Association. Former S.E.C. Commissioner Laura Unger, nominated by Bill Clinton, likened the short squeeze and the stock market situation to the mob that on January 6 stormed the United States Capitol, and called for the SEC and Federal Communications Commission to investigate the origins of the "market manipulation" and review whether they could monitor and regulate conversations on public chat forums. Columbia Law School Prof. John C. Coffee Jr. likewise stated that retail investors had "revolted and stormed the Bastille."
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username DeepFuckingValue and known as Roaring Kitty on YouTube and Twitter, purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021. DeepFuckingValue, 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. He shared information regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). DeepFuckingValue, a r/wsb poster known on YouTube and Twitter as "Roaring Kitty", purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021; he had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). DeepFuckingValue, a r/wsb poster known on YouTube and Twitter as "Roaring Kitty", purchased around $53,000 in call options on GameStop's stock in 2019. He saw his position rise to a value of $48 million by January 27, 2021; he had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). DeepFuckingValue, a r/wsb poster known on YouTube and Twitter as "Roaring Kitty", 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. He had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). DeepFuckingValue, a r/wsb poster known on YouTube and Twitter as "Roaring Kitty", 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. He had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). DeepFuckingValue, a poster on r/WallStreetBets (known on YouTube and Twitter as "Roaring Kitty"), 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. He had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit, and especially a financial advisor known as "DeepFuckingValue". At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). DeepFuckingValue, a poster on r/WallStreetBets (known on YouTube and Twitter as "Roaring Kitty"), 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. He had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. He had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. He had begun investing in GameStop during the summer of 2019, believing the stock to be undervalued at that time. His posts on the subreddit provided regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29 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.
The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
Three different federal lawsuits have been filed from Tampa, Florida regarding the incident. In all, at least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases.
Three different federal lawsuits have been filed from Tampa, Florida, regarding the incident. In all, at least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases.
Three different federal lawsuits have been filed from Tampa, Florida, regarding the incident. In all, at least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases.
At least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/WallStreetBets, an Internet forum on the social news website Reddit, and especially a financial advisor known as "DeepFuckingValue". At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases. The subreddit r/WallStreetBets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/WallStreetBets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/WallStreetBets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, and especially a financial advisor known as "DeepFuckingValue". At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases. The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/wallstreetbets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, and especially a financial advisor known as "DeepFuckingValue". At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares.
Due to the numerous restrictions brokerage firms placed on buying stock, GameStop stock fell considerably in February. More than 35 million GameStop shares no longer shorted, leaving 27.1 million remaining as of February 2. Both fundamental and momentum short sellers have found opportunities and price exit points to trim their positions and exit the space to reduce losses. With the artificial inflation of GameStop in decline and the prospect of fiscal stimulus nearing, financial and industrial companies in the S&P 500 rose on February 2, citing market stability as a factor.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
Due to the numerous restrictions brokerage firms placed on buying stock, GameStop stock fell considerably in February. More than 35 million GameStop shares no longer shorted, leaving 27.1 million remaining as of February 2. Both fundamental and momentum short sellers have found opportunities and price exit points to trim their positions and exit the space to reduce losses. With the artificial inflation of GameStop in decline and the prospect of fiscal stimulus nearing, financial and industrial companies in the S&P 500 rose on February 2, citing market stability as a factor.
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors. Similar sentiments condemning the short squeeze as a "fraud" organized by a "flash mob", emphasizing the need for market stability and importance of short sellers, and calling for an S.E.C investigation were expressed by Better Markets President and CEO Dennis Kelleher, Bryan Corbett, president and CEO of the Managed Funds Association, as well as the Alternative Investment Management Association. Former S.E.C. Commissioner Laura Unger, nominated by Bill Clinton, likened the short squeeze and the stock market situation to the mob that on January 6 stormed the United States Capitol, and called for the SEC and Federal Communications Commission to investigate the origins of the "market manipulation" and review whether they could monitor and regulate conversations on public chat forums. Columbia Law School Prof. John C. Coffee Jr. likewise stated that retail investors had "revolted and stormed the Bastille."
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors. Similar sentiments condemning the short squeeze as a "fraud" organized by a "flash mob", emphasizing the need for market stability and importance of short sellers, and calling for an SEC investigation were expressed by Better Markets President and CEO Dennis Kelleher, Bryan Corbett, president and CEO of the Managed Funds Association, as well as the Alternative Investment Management Association. Former SEC Commissioner Laura Unger, nominated by Bill Clinton, likened the short squeeze and the stock market situation to the mob that on January 6 stormed the United States Capitol, and called for the SEC and Federal Communications Commission to investigate the origins of the "market manipulation" and review whether they could monitor and regulate conversations on public chat forums. Columbia Law School Prof. John C. Coffee Jr. likewise stated that retail investors had "revolted and stormed the Bastille."
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Alexandria Ocasio-Cortez (D-NY), Rashida Tlaib (D-MI), Ted Lieu (D-CA), Marjorie Taylor Greene (R-GA) and Ro Khanna (D-CA), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Marjorie Taylor Greene (R-GA),[citation needed] Ro Khanna (D-CA),[citation needed] Ted Lieu (D-CA), Alexandria Ocasio-Cortez (D-NY), and Rashida Tlaib (D-MI), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80% of its value from its peak price recorded during the previous week. Gamestop shares lost 60% of their value on February 2, closing below $100 for the first time since the beginning of the short squeeze. Other assets affected by the short squeeze, such as AMC shares and Blackberry share, also declined in value. Reports estimated that $27 billion in market value had been erased.
Several celebrities and influencers also criticized Robinhood. Actor and rapper Ja Rule, who had used Robinhood since 2014, said what the company did was "a fucking CRIME" and called the situation "an uprising". Comedian and television host Jon Stewart, after joining Twitter, expressed support for the Reddit traders in his first tweet, stating "they're joining a party Wall Street insiders have been enjoying for years". YouTuber Philip DeFranco announced he would be dropping his partnership with Robinhood, saying "Robinhood is never getting a fucking spot on my show again regardless of the offer." Barstool Sports founder David Portnoy also criticized Robinhood for its lack of "free trading". 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.
Several celebrities and influencers also criticized Robinhood. Actor and rapper Ja Rule, who had used Robinhood since 2014, said what the company did was "a fucking CRIME" and called the situation "an uprising". Comedian and television host Jon Stewart, after joining Twitter, expressed support for the Reddit traders in his first tweet, stating "they're joining a party Wall Street insiders have been enjoying for years". Late night host Jimmy Kimmel criticized Stewart for his tweet, sarcastically asking him "RealDonaldTrump? Is that you?"; Kimmel later called the Redditors "Russian disruptors" on his show. YouTuber Philip DeFranco announced he would be dropping his partnership with Robinhood, saying "Robinhood is never getting a fucking spot on my show again regardless of the offer." Barstool Sports founder David Portnoy also criticized Robinhood for its lack of "free trading". 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.
Several celebrities and influencers also criticized Robinhood. Actor and rapper Ja Rule, who had used Robinhood since 2014, said what the company did was "a fucking CRIME" and called the situation "an uprising". Comedian and television host Jon Stewart, after joining Twitter, expressed support for the Reddit traders in his first tweet, stating "they're joining a party Wall Street insiders have been enjoying for years". Late night host Jimmy Kimmel criticized Stewart for his tweet, sarcastically asking him "RealDonaldTrump? Is that you?"; Kimmel later called the Redditors "Russian disruptors" on his show. YouTuber Philip DeFranco announced he would be dropping his partnership with Robinhood, saying "Robinhood is never getting a fucking spot on my show again regardless of the offer." Barstool Sports founder David Portnoy also criticized Robinhood for its lack of "free trading". 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.
Several celebrities and influencers also criticized Robinhood. Actor and rapper Ja Rule, who had used Robinhood since 2014, said what the company did was "a fucking CRIME" and called the situation "an uprising". Comedian and television host Jon Stewart, after joining Twitter, expressed support for the Reddit traders in his first tweet, stating "they're joining a party Wall Street insiders have been enjoying for years". Late night host Jimmy Kimmel criticized Stewart for his tweet, sarcastically asking him "RealDonaldTrump? Is that you?"; Kimmel later called the Redditors "Russian disruptors" on his show. YouTuber Philip DeFranco announced he would be dropping his partnership with Robinhood, saying "Robinhood is never getting a fucking spot on my show again regardless of the offer." Barstool Sports founder David Portnoy also criticized Robinhood for its lack of "free trading". 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.[additional citation(s) needed]
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80% of its value from its peak price recorded during the previous week. Gamestop shares lost 60% of their value on February 2, closing below $100 for the first time since the beginning of the short squeeze. Other assets affected by the short squeeze, such as AMC shares and Blackberry share, also declined in value. Reports estimated that $27 billion in market value had been erased.
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80 percent of its value from its peak price recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since the beginning of the short squeeze. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined in value. Reports estimated that $27 billion in market value had been erased.
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80 percent of its value from its peak price recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since the beginning of the short squeeze. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined in value. Reports estimated that $27 billion in market value had been erased.
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80 percent of its value from its peak price recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined in value. Reports estimated that $27 billion in market value had been erased.
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80 percent of its value from its peak price recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined in value. Reports estimated that $27 billion in market value had been erased.
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80 percent of its value from its peak price recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC, Blackberry, and Nokia shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been erased. This was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.
Separately, Metro-Goldwyn-Mayer (MGM) acquired the rights to make its own movie based on Ben Mezrich's book proposal for The Antisocial Network, aimed at chronicling the recent events on Wall Street.
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. A limited-run series based on the events titled To the Moon was also announced.
Silver prices and silver mining also fell sharply since February. By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
Due to the decline in volatility and stability in the market, the Dow, S&P 500, and Nasdaq Composite rose by more than 1.4%, recording its best days since November, with the Dow climbing by more than 400 points. Silver prices and silver mining also fell sharply since February, falling more than 9% By January 28, 20s21, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
Since January 1, executives at BlackBerry and GameStop have sold more than $22 million in stock. There is no allegation of insider trading among BlackBerry executives, according to CBS News. Three BlackBerry executives sold nearly $1.7 million of the company's stock, with one of the executives, BlackBerry Chief Financial Officer Steve Rai, selling all of his shares in the company excepting unvested employee stock options.
Since January 1, executives at BlackBerry and GameStop have sold more than $22 million in stock. There is no allegation of insider trading among BlackBerry executives, according to CBS News. Three BlackBerry executives sold nearly $1.7 million of the company's stock, with one of the executives, Chief Financial Officer Steve Rai, selling all of his shares in the company excepting unvested employee stock options.
Silver prices and silver mining also fell sharply since February, falling more than 9%
Silver prices and silver mining also fell sharply since February, falling more than 9%, after surging on February 1 to its highest level since February 2013.
On February 1 and February 2, the GameStop stock price declined substantially, losing more than 80 percent of its value from its peak price recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC, Blackberry, and Nokia shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been erased. This was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC, Blackberry, and Nokia shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.[failed verification]
At least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases.
At least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases. On February 2, PCMag reported that Robinhood was facing 34 separate class-action lawsuits.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC, Blackberry, and Nokia shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Other restricted names were lower in the start of February, such as Express which lowered 17%, Koss which dropped 45%, and Naked Brand Group which fell 14%. Genius Brands, Blackberry and Nokia were restricted names that briefly tipped on Monday before falling. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.[failed verification]
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors. Similar sentiments condemning the short squeeze as a "fraud" organized by a "flash mob", emphasizing the need for market stability and importance of short sellers, and calling for an SEC investigation were expressed by Better Markets President and CEO Dennis Kelleher, Bryan Corbett, president and CEO of the Managed Funds Association, as well as the Alternative Investment Management Association. Former SEC Commissioner Laura Unger, nominated by Bill Clinton, likened the short squeeze and the stock market situation to the mob that on January 6 stormed the United States Capitol, and called for the SEC and Federal Communications Commission to investigate the origins of the "market manipulation" and review whether they could monitor and regulate conversations on public chat forums. Columbia Law School Prof. John C. Coffee Jr. likewise stated that retail investors had "revolted and stormed the Bastille."
In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Other restricted names were lower in the start of February, such as Express which lowered 17%, Koss which dropped 45%, and Naked Brand Group which fell 14%. Genius Brands, Blackberry and Nokia were restricted names that briefly tipped on Monday before falling. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined by over 30% in value. Other restricted names were lower in the start of February, such as Express which lowered 17%, Koss which dropped 45%, and Naked Brand Group which fell 14%. Genius Brands, Blackberry and Nokia were restricted names that briefly tipped on Monday before falling, with Nokia able to rise above 7%. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.
Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could purchase at once.
Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could be purchased at once.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined by over 30% in value. Other restricted names were lower in the start of February, such as Express which lowered 17%, Koss which dropped 45%, and Naked Brand Group which fell 14%. Genius Brands, Blackberry and Nokia were restricted names that briefly tipped on Monday before falling, with Nokia able to rise above 7%. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could be purchased at once. Silver prices and silver mining also fell sharply since February, falling more than 9%, after surging on February 1 to its highest level since February 2013.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could be purchased at once.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high; this was partly due to trading restrictions from Robinhood and other brokers on how many shares of volatile stocks like GameStop, AMC, Express, and Nokia could be purchased at once.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
Due to the decline in volatility and stability in the market, the Dow, S&P 500, and Nasdaq Composite rose by more than 1.4%, recording its best days since November, with the Dow climbing by more than 400 points.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman owns over 2.3 million shares in the company, according to Bloomberg News. 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 prices lowered to $901 million on January 29. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outsider information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News. In an interview with CNBC, Reddit co-founder Alexis Ohanian compared the rally to Occupy Wall Street, saying that "it's a chance for Joe and Jane America—the retail buyers of stock—to flex back and push back on these hedge funds." Numerous journalists have also drawn comparison to the Occupy movement. Similar sentiments sympathetic for the retail investors were expressed by billionaire investors Mark Cuban and Chamath Palihapitiya. Palihapitiya, who passed on early investment opportunities in Robinhood, opined that the founding co-CEOs, Baiju Bhatt and Vladimir Tenev, lacked integrity and urged his followers to "#DeleteRobinhood". OpenAI CEO Sam Altman suggested the company change its name. SpaceX and Tesla CEO Elon Musk also criticized the general practice of stock shorting, calling it a "scam legal only for vestigial reasons" A number of major hedge funds had previously shorted Tesla, incurring losses of more than $40 billion as the stock rose considerably. In an interview with CNBC, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman owns over 2.3 million shares in the company, according to Bloomberg News. 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 prices lowered to $901 million on January 29. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outside information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News. 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 America—the retail buyers of stock—to flex back and push back on these hedge funds." Numerous journalists have also drawn comparison to the Occupy movement. Similar sentiments sympathetic for the retail investors were expressed by billionaire investors Mark Cuban and Chamath Palihapitiya. Palihapitiya, who passed on early investment opportunities in Robinhood, opined that the founding co-CEOs, Baiju Bhatt and Vladimir Tenev, lacked integrity and urged his followers to "#DeleteRobinhood". OpenAI CEO Sam Altman suggested the company change its name. SpaceX and Tesla CEO Elon Musk also criticized the general practice of stock shorting, calling it a "scam legal only for vestigial reasons" A number of major hedge funds had previously shorted Tesla, incurring losses of more than $40 billion as the stock rose considerably. In a CNBC interview, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
By January 28, 20s21, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets.
On January 28, multiple brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Class-action lawsuits were filed against Robinhood in the U.S. District Courts for the Southern District of New York and the Northern District of Illinois. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
On January 28, multiple brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum, and dozens of classaction lawsuits were filed against Robinhood in U.S. courts. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped inperson. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Marjorie Taylor Greene (R-GA),[citation needed] Ro Khanna (D-CA),[citation needed] Ted Lieu (D-CA), Alexandria Ocasio-Cortez (D-NY), and Rashida Tlaib (D-MI), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Alexandria Ocasio-Cortez (D-NY), Ro Khanna (D-CA), Ted Lieu (D-CA), and Rashida Tlaib (D-MI), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Alexandria Ocasio-Cortez (D-NY), Ro Khanna (D-CA), Ted Lieu (D-CA), and Rashida Tlaib (D-MI), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Ro Khanna (D-CA), Ted Lieu (D-CA), Alexandria Ocasio-Cortez (D-NY), and Rashida Tlaib (D-MI), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification] The stock closed on dollar values for three consecutive trading days.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined by over 30% in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification] The stock closed on dollar values for three consecutive trading days.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time since January 25. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value. Reports estimated that $27 billion in market value had been lost from the stock's high. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 67 percent of their value on February 2. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value; about $27 billion in market value had been lost from the three companies. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its peak price, recorded during the previous week. GameStop shares lost 67 percent of their value on February 2. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value; about $27 billion in market value had been lost from the three companies. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 67 percent of their value on February 2. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value; about $27 billion in market value had been lost from the three companies. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 67 percent of their value on February 2. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value; about $27 billion in market value had been lost from the three companies. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
According the Anti-Defamation League, as the GameStop event played out, a small segment of social media users blamed Jews for supposedly rigging the system and manipulating the global economy through control of finance, government and media. This includes Andrew Anglin, founder of the neo-Nazi website The Daily Stormer, who called the GameStop short squeeze “fantastic stuff”. He wrote, “It is the epitome of the way Jews operate in Western, white countries, simply looting us all”. He continued, “beating them at their own game like this, costing them billions of dollars...is one of the funniest things anyone could ever do – even if the government is just going to tax you with inflation to get them all their money back”. Other similar conspiracy theories echoing harmful, centuries-old, antisemitc tropes circulated on platforms such as Reddit, Twitter, and Telegram.
According the Anti-Defamation League, as the GameStop event played out, a small segment of social media users blamed Jews for supposedly rigging the system and manipulating the global economy through control of finance, government and media. This includes Andrew Anglin, founder of the neo-Nazi website The Daily Stormer, who called the GameStop short squeeze “fantastic stuff”. He wrote, “It is the epitome of the way Jews operate in Western, white countries, simply looting us all”. He continued, “beating them at their own game like this, costing them billions of dollars...is one of the funniest things anyone could ever do – even if the government is just going to tax you with inflation to get them all their money back”. Other similar conspiracy theories echoing harmful, centuries-old, antisemitc tropes circulated on platforms such as Reddit, Twitter, and Telegram.
In a interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian politician, businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, remarking "They’re learning about the risks of the market. ... We forgot to educate them in high school, so let them learn in the real world, which is even better." O'Leary said that hedge funds now faced the new risk that "social media vigilantes" would target them, which would caution them from aggressively selling short stocks. O'Leary emphasized that the virality of the GameStop trade—aided partly by zero-commission brokerage apps such as Robinhood—had sparked a growing interest in investing.
In an interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian politician, businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, remarking "They’re learning about the risks of the market. ... We forgot to educate them in high school, so let them learn in the real world, which is even better." O'Leary said that hedge funds now faced the new risk that "social media vigilantes" would target them, which would caution them from aggressively selling short stocks. O'Leary emphasized that the virality of the GameStop trade—aided partly by zero-commission brokerage apps such as Robinhood—had sparked a growing interest in investing.
At least 25 groups of plaintiffs across 11 states have filed lawsuits against Robinhood relating to their halting of stock purchases. On February 2, PCMag reported that Robinhood was facing 34 separate class-action lawsuits.
As of February 2, Robinhood was facing 34 separate class-action lawsuits.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, surged to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?]
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.[failed verification]
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-avarage volume of transfers.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.
While short-sellers have experiences huge losses, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers.
While short-sellers have experiences huge losses, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers.
While short-sellers have experiences huge losses, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at BlackBerry and GameStop have sold more than $22 million in stock.
While short-sellers have experiences huge losses, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at BlackBerry and GameStop have sold more than $22 million in stock.
While short-sellers have experiences huge losses, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at GameStop and BlackBerry have sold more than $22 million in stock.
While short-sellers have experiences huge losses, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at GameStop and BlackBerry have sold more than $22 million in stock. An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street’s largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-avarage volume of transfers.
While short-sellers have experiences huge losses, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at GameStop and BlackBerry have sold more than $22 million in stock. An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades to 100^%. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
According the Anti-Defamation League, as the GameStop event played out, a small segment of social media users blamed Jews for supposedly rigging the system and manipulating the global economy through control of finance, government and media. This includes Andrew Anglin, founder of the neo-Nazi website The Daily Stormer, who wrote “beating them [Jews] at their own game like this, costing them billions of dollars...is one of the funniest things anyone could ever do – even if the government is just going to tax you with inflation to get them all their money back”. Other similar conspiracy theories echoing antisemitic tropes circulated on platforms such as Reddit, Twitter, and Telegram.
While short-sellers have experiences huge losses, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at GameStop and BlackBerry have sold more than $22 million in stock. According the Anti-Defamation League, as the GameStop event played out, a small segment of social media users blamed Jews for supposedly rigging the system and manipulating the global economy through control of finance, government and media. This includes Andrew Anglin, founder of the neo-Nazi website The Daily Stormer, who wrote “beating them [Jews] at their own game like this, costing them billions of dollars...is one of the funniest things anyone could ever do – even if the government is just going to tax you with inflation to get them all their money back”. Other similar conspiracy theories echoing antisemitic tropes circulated on platforms such as Reddit, Twitter, and Telegram.
While short-sellers have experienced huge losses, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at GameStop and BlackBerry have sold more than $22 million in stock. According to the Anti-Defamation League, as the GameStop event played out, a small segment of social media users blamed Jews for supposedly rigging the system and manipulating the global economy through control of finance, government and media. This includes Andrew Anglin, founder of the neo-Nazi website The Daily Stormer, who wrote “beating them [Jews] at their own game like this, costing them billions of dollars...is one of the funniest things anyone could ever do – even if the government is just going to tax you with inflation to get them all their money back”. Other similar conspiracy theories echoing antisemitic tropes circulated on platforms such as Reddit, Twitter, and Telegram.
While short-sellers have experienced huge losses, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers, while executives at GameStop and BlackBerry have sold more than $22 million in stock.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades to 100^%. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock.However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online petfood retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
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. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. This is in contrast with taking a long position (simply owning the stock), where the investor's loss is limited to the cost of their initial investment. Short sellers are exposed to a risk of short squeezing, which occurs when the shorted stock jumps in value due, for instance, to a sudden piece of favorable news. Short sellers are then forced to buy back the stock they had initially sold, in an effort to keep their losses from mounting. Purchasing the stock to cover their short positions raises the price of the shorted stock, thus triggering more short sellers to cover their positions by buying the stock. This can result in a cascade of stock purchases and an even bigger jump of the share price.
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. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. This is in contrast with taking a long position (simply owning the stock), where the investor's loss is limited to the cost of their initial investment.
Short sellers are exposed to a risk of short squeezing, which occurs when the shorted stock jumps in value due, for instance, to a sudden piece of favorable news. Short sellers are then forced to buy back the stock they had initially sold, in an effort to keep their losses from mounting. Purchasing the stock to cover their short positions raises the price of the shorted stock, thus triggering more short sellers to cover their positions by buying the stock. This can result in a cascade of stock purchases and an even bigger jump of the share price.
On January 22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. 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. 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. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. This is in contrast with taking a long position (simply owning the stock), where the investor's loss is limited to the cost of their initial investment. Short sellers are exposed to a risk of short squeezing, which occurs when the shorted stock jumps in value due, for instance, to a sudden piece of favorable news. Short sellers are then forced to buy back the stock they had initially sold, in an effort to keep their losses from mounting. Purchasing the stock to cover their short positions raises the price of the shorted stock, thus triggering more short sellers to cover their positions by buying the stock. This can result in a cascade of stock purchases and an even bigger jump of the share price.
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. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. This is in contrast with taking a long position (simply owning the stock), where the investor's loss is limited to the cost of their initial investment.
Short sellers are exposed to a risk of short squeezing, which occurs when the shorted stock jumps in value due, for instance, to a sudden piece of favorable news. Short sellers are then forced to buy back the stock they had initially sold, in an effort to keep their losses from mounting. Purchasing the stock to cover their short positions raises the price of the shorted stock, thus triggering more short sellers to cover their positions by buying the stock. This can result in a cascade of stock purchases and an even bigger jump of the share price.
On January 22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. Observers congregating around the subreddit 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.
On January22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. Observers congregating around the subreddit 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. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
As of January22, 2021[update], approximately 140% of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. Observers congregating around the subreddit 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. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz (R-TX), Representatives Ro Khanna (D-CA), Ted Lieu (D-CA), Alexandria Ocasio-Cortez (D-NY), and Rashida Tlaib (D-MI), Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr. Senator Elizabeth Warren (D-MA) criticized both the short sellers and the buyers, and argued that more regulation was needed. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". She also called on the U.S. Securities and Exchange Commission to take a bigger stand, saying they must "act to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders" and "to have a healthy stock market, you've got to have a cop on the beat." 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, and Speaker of the House Nancy Pelosi (D-CA) said that Congress will also be reviewing it. However, some reporters raised concern over a potential conflict of interest in regards to Yellen, as she had received $810,000 from Citadel after the end of her term as Chair of the Federal Reserve, as well as $7 million in total from various firms for public speaking appearances. Senator Sherrod Brown (D-OH) announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds (R-FL) called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood". Representative Maxine Waters (D-CA) announced she will convene a hearing in the Financial Services Committee.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz, Representatives Ro Khanna, Ted Lieu, Alexandria Ocasio-Cortez, and Rashida Tlaib, Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr. Senator Elizabeth Warren criticized both the short sellers and the buyers, and argued that more regulation was needed. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". She also called on the U.S. Securities and Exchange Commission to take a bigger stand, saying they must "act to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders" and "to have a healthy stock market, you've got to have a cop on the beat." 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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. However, some reporters raised concern over a potential conflict of interest in regards to Yellen, as she had received $810,000 from Citadel after the end of her term as Chair of the Federal Reserve, as well as $7 million in total from various firms for public speaking appearances. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood". Representative Maxine Waters announced she will convene a hearing in the Financial Services Committee.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. As of January 22, 2021[update], approximately 140% of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. Observers congregating around the subreddit 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. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
On January 22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. 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. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
According to the Anti-Defamation League, as the GameStop event played out, a small segment of social media users blamed Jews for supposedly rigging the system and manipulating the global economy through control of finance, government and media. This includes Andrew Anglin, founder of the neo-Nazi website The Daily Stormer, who wrote “beating them [Jews] at their own game like this, costing them billions of dollars...is one of the funniest things anyone could ever do – even if the government is just going to tax you with inflation to get them all their money back”. Other similar conspiracy theories echoing antisemitic tropes circulated on platforms such as Reddit, Twitter, and Telegram.
On January 22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. 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. The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. On January 22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. 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. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. On January 22, 2021, approximately 140 percent of GameStop's public float (the portion of shares of a corporation that are in the hands of public investors) had been sold short, meaning some shorted shares had been re-lent and shorted again. 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. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[a] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. On January 22, 2021, approximately 140 percent of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. 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. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 200 times the stock's one-year low of $2.57. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the value of the stock ($17.25) at the beginning of the month. Many other heavily shorted securities also saw price increases.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop, is $483.00 (nearly 190 times the record low of $2.57). In pre-market trading hours, it briefly hit over $500 the same day.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop was $483.00 (nearly 190 times the record low of $2.57 in April 2020). In pre-market trading hours the same day, it briefly hit over $500.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the value of the stock ($17.25) at the beginning of the month. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop shares had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. Many other heavily shorted securities also saw price increases.
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. However, Google deleted at least 100,000 such reviews, calling them "coordinated or inorganic". Protesters also showed up outside Robinhood headquarters in Menlo Park, California, at the Securities and Exchange Commission headquarters in Washington, D.C., and the New York Stock Exchange.
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. However, Google deleted at least 100,000 such reviews, calling them "coordinated or inorganic". However, after another round of negative reviews on the app dropping it to a 1.1-star rating, Google confirmed that the new reviews do not violate Google policies and will not be removed. Protesters also showed up outside Robinhood headquarters in Menlo Park, California, at the Securities and Exchange Commission headquarters in Washington, D.C., and the New York Stock Exchange.
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. However, Google deleted at least 100,000 such reviews, calling them "coordinated or inorganic". However, after another round of negative reviews on the app dropping it to a 1.1-star rating, Google confirmed that the new reviews do not violate Google policies and will not be removed. Protesters also showed up outside Robinhood headquarters in Menlo Park, California, at the Securities and Exchange Commission headquarters in Washington, D.C., and the New York Stock Exchange.
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. Google deleted at least 100,000 such reviews, calling them "coordinated or inorganic". However, after another round of negative reviews on the app dropping it to a 1.1-star rating, Google confirmed that the new reviews do not violate Google policies and will not be removed. Protesters also showed up outside Robinhood headquarters in Menlo Park, California, at the Securities and Exchange Commission headquarters in Washington, D.C., and the New York Stock Exchange.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop was $483.00 (nearly 190 times the record low of $2.57 in April 2020). In pre-market trading hours the same day, it briefly hit over $500.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop was $483.00 (nearly 190 times the record low of $2.57 in April 2020). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month.
Vladimir Tenev, Robinhood's CEO, was reported to be testifying before the United States House Committee on Financial Services, scheduled for February 18.
Vladimir Tenev, Robinhood's CEO, was reported to be testifying before the United States House Committee on Financial Services, scheduled for February 18, along with Keith Gill.[needs update]
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman owns over 2.3 million shares in the company, according to Bloomberg News. 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 prices lowered to $901 million on January 29. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outside information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman owns over 2.3 million shares in the company, according to Bloomberg News. 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. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outside information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
GME Resources, an Australian mining company, saw their shares increase more than 50 percent during intraday trading, closing with a 13.3-percent increase on January 28. This was speculated to have occurred as a joke or mistake given the identical ticker symbols on different exchanges.
The shares of GME Resources, an Australian mining company with Australian Securities Exchange (ASX) symbol GME, increased more than 50 percent during intraday trading, closing with a 13.3-percent increase on January 28. This was speculated to have been due to a joke or mistake, as the ASX symbol was the same as GameStop's NYSE ticker symbol (GME).
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over $1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?]
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over US$1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?]
As of January 29, Robinhood still imposes limits on the trading of GameStop, AMC, and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Motor Cars and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities.
As of January 29, Robinhood was still imposing limits on the trading of GameStop, AMC, and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Motor Cars and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities.
In an interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian politician, businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, remarking "They’re learning about the risks of the market. ... We forgot to educate them in high school, so let them learn in the real world, which is even better." O'Leary said that hedge funds now faced the new risk that "social media vigilantes" would target them, which would caution them from aggressively selling short stocks. O'Leary emphasized that the virality of the GameStop trade—aided partly by zero-commission brokerage apps such as Robinhood—had sparked a growing interest in investing.
In an interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, remarking "They’re learning about the risks of the market. ... We forgot to educate them in high school, so let them learn in the real world, which is even better." O'Leary said that hedge funds now faced the new risk that "social media vigilantes" would target them, which would caution them from aggressively selling short stocks. O'Leary emphasized that the virality of the GameStop trade—aided partly by zero-commission brokerage apps such as Robinhood—had sparked a growing interest in investing.
Senator Elizabeth Warren criticized both the short sellers and the buyers, and argued that more regulation was needed. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". She also called on the U.S. Securities and Exchange Commission to take a bigger stand, saying they must "act to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders" and "to have a healthy stock market, you've got to have a cop on the beat." In an interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, remarking "They’re learning about the risks of the market. ... We forgot to educate them in high school, so let them learn in the real world, which is even better." O'Leary said that hedge funds now faced the new risk that "social media vigilantes" would target them, which would caution them from aggressively selling short stocks. O'Leary emphasized that the virality of the GameStop trade—aided partly by zero-commission brokerage apps such as Robinhood—had sparked a growing interest in investing. On January 28, New York State Comptroller Thomas DiNapoli told reporters that the state, which had 647,500 shares in March 2020, had sold off hundreds of thousands of shares since then, benefiting from the squeeze.
Senator Elizabeth Warren criticized both the short sellers and the buyers, and argued that more regulation was needed. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". She also called for stronger regulatory action from the U.S. Securities and Exchange Commission "to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders" In an interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, saying thar real-world education was positive; that the risk of being targeted by "social media vigilantes" would dissuade hedge funds from aggressively selling short stocks; and zero-commission brokerage apps such as Robinhoodhad sparked a growing interest in retail investing. On January 28, New York State Comptroller Thomas DiNapoli told reporters that the state pension fund, which had 647,500 shares in March 2020, had sold off hundreds of thousands of shares since then, benefiting from the squeeze.
Senator Elizabeth Warren criticized both the short sellers and the buyers, and argued that more regulation was needed. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". She also called for stronger regulatory action from the U.S. Securities and Exchange Commission "to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders"
Senator Elizabeth Warren criticized both the short sellers and the buyers, and argued that more regulation was needed. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". She also called for stronger regulatory action from the U.S. Securities and Exchange Commission "to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders."
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. However, some reporters raised concern over a potential conflict of interest in regards to Yellen, as she had received $810,000 from Citadel after the end of her term as Chair of the Federal Reserve, as well as $7 million in total from various firms for public speaking appearances. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood". Representative Maxine Waters announced she will convene a hearing in the Financial Services Committee.
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood". Representative Maxine Waters announced she will convene a hearing in the Financial Services Committee.
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood". Representative Maxine Waters announced she will convene a hearing in the Financial Services Committee. Vladimir Tenev, Robinhood's CEO, was reported to be testifying before the United States House Committee on Financial Services, scheduled for February 18, along with Keith Gill.[needs update]
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood". Representative Maxine Waters annouced that the House Financial Services Committee would convene a hearing entitled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide to educate Congress. Witnesses at the hearing, scheduled for February 18, will include Vladimir Tenev, Robinhood's CEO, along with Keith Gill.[needs update]
Due to the COVID-19 pandemic, consumer spending in general was drastically lower than normal. There was also more money in the hands of investors as a result of historically low interest rates and an inability to spend their money elsewhere. Other suggested factors included a culture of taking massive gambles on the stock market in the hopes of making money quickly, anger of some investors towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008, or the general democratization of the stock market coupled with the ability of retail traders to communicate instantaneously through social media.
Suggested factors included a culture of taking massive gambles on the stock market in the hopes of making money quickly, anger of some investors towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008, or the general democratization of the stock market coupled with the ability of retail traders to communicate instantaneously through social media.
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. However, some reporters raised concern over a potential conflict of interest in regards to Yellen, as she had received $810,000 from Citadel after the end of her term as Chair of the Federal Reserve, as well as $7 million in total from various firms for public speaking appearances. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. However, some reporters raised concern over a potential conflict of interest in regards to Yellen, as she had received $810,000 from Citadel after the end of her term as Chair of the Federal Reserve, as well as $7 million in total from various firms for public speaking appearances. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund bought a 5% stake in Gamestop when shares were at 10 dollars and made 700 million dollars.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information, as DeepFuckingValue, regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund bought a 5% stake in Gamestop when shares were at 10 dollars and made 700 million dollars.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a 5% stake in Gamestop when shares were at 10 dollars and made 700 million dollars.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Apart from GameStop, many other heavily shorted securities (as well as securities with low short interest) saw increases in their prices: a Prices may be higher during extended-hours trading. The shares of GME Resources, an Australian mining company with Australian Securities Exchange (ASX) symbol GME, increased more than 50 percent during intraday trading, closing with a 13.3-percent increase on January 28. This was speculated to have been due to a joke or mistake, as the ASX symbol was the same as GameStop's NYSE ticker symbol (GME). 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. 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. The rally call was reportedly organized from r/bursabets, a Malaysian offshoot of r/wallstreetbets named after the Malaysian stock exchange. In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over US$1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?] Following the stock market surge, futures for silver began to rapidly increase as well, although later news reports clarified that it was unclear who was behind the rise. On January 28 and 29, the price of silver rose 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Users on r/wallstreetbets deny involvement in the increasing price of silver, instead blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Many of those investing into the stock were young teenage investors. Apart from GameStop, many other heavily shorted securities (as well as securities with low short interest) saw increases in their prices: a Prices may be higher during extended-hours trading. The shares of GME Resources, an Australian mining company with Australian Securities Exchange (ASX) symbol GME, increased more than 50 percent during intraday trading, closing with a 13.3-percent increase on January 28. This was speculated to have been due to a joke or mistake, as the ASX symbol was the same as GameStop's NYSE ticker symbol (GME). 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. 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. The rally call was reportedly organized from r/bursabets, a Malaysian offshoot of r/wallstreetbets named after the Malaysian stock exchange. In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over US$1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?] Following the stock market surge, futures for silver began to rapidly increase as well, although later news reports clarified that it was unclear who was behind the rise. On January 28 and 29, the price of silver rose 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Users on r/wallstreetbets deny involvement in the increasing price of silver, instead blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. Many other heavily shorted securities also saw price increases.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Many of those investing into the stock were young teenage investors.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Some of those investing into the stock were young teenage investors.
Reddit’s WallStreetBets founder, Jaime Rogozinski, who founded the forum in 2012, sold the rights to his life story to RatPac Entertainment, a movie production company known for backing hits like “Wonder Woman"
Reddit’s WallStreetBets founder, Jaime Rogozinski, who founded the forum in 2012, sold the rights to his life story to RatPac Entertainment, a movie production company known for backing hits like “Wonder Woman"
Reddit's WallStreetBets founder, Jaime Rogozinski, who founded the forum in 2012, sold the rights to his life story to RatPac Entertainment, a movie production company known for backing hits like "Wonder Woman"
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was partially triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was partially triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53% of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets. An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a 5% stake in Gamestop when shares were at 10 dollars and made 700 million dollars.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets. An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million.
Reddit's WallStreetBets founder, Jaime Rogozinski, who founded the forum in 2012, sold the rights to his life story to RatPac Entertainment, a movie production company known for backing hits like "Wonder Woman"
Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. 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. A limited-run series based on the events titled To the Moon was also announced. Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment. A documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film.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.A limited-run series based on the events titled To the Moon was also announced.Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment, and a documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works.
In an interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, saying thar real-world education was positive; that the risk of being targeted by "social media vigilantes" would dissuade hedge funds from aggressively selling short stocks; and zero-commission brokerage apps such as Robinhood had sparked a growing interest in retail investing.
In an interview with CNBC, Massachusetts Secretary of the Commonwealth William F. Galvin criticized the investors' behavior as based on reckless speculation and called for a 30-day suspension of trading GME stock, stating "I think we've all recognized the current pandemic has created a unique situation where many have gotten into day-trading and really have no idea exactly what they're doing ... I think small-time investors like that, unsophisticated investors, are going to be hurt by this." In another CNBC interview joined by Canadian businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, saying that real-world education was positive; that the risk of being targeted by "social media vigilantes" would dissuade hedge funds from aggressively selling short stocks; and zero-commission brokerage apps such as Robinhood had sparked a growing interest in retail investing.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth 2.6 billion at the peak.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. 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. A limited-run series based on the events titled To the Moon was also announced. Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment, and a documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. 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. A limited-run series based on the events titled To the Moon was also announced. Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment, and a documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works. HBO is also currently in development of a scripted film about the events from executive producers Andrew Ross Sorkin, Jason Blum, and Len Amato.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. 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.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth 2.6 billion at the peak.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. Senvest Management hedge fund had previously bought a five percent stake in GameStop when shares were at $10 and made $700 million. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. 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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. 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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. 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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. The Koss family, owners of smartphone producer Koss Corporation earned $30 million from the stock surge.
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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. The Koss family, owners of smartphone producer Koss Corporation earned $30 million from the stock surge.
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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. The trading led to volatility in the stock of the Koss Corporation, and by selling stock the executives and directors of the company were able to earn $45 million.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased. On January 28, multiple brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum, and dozens of class action lawsuits were filed against Robinhood in U.S. courts. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
On January 28, multiple brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum, and dozens of class action lawsuits were filed against Robinhood in U.S. courts. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. The trading led to volatility in the stock of the Koss Corporation, and by selling stock the executives and directors of the company were able to earn $45 million.
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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The trading led to volatility in the stock of the Koss Corporation, and by selling stock the executives and directors of the company were able to earn $45 million.
As of January 29, Robinhood was still imposing limits on the trading of GameStop, AMC, and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Motor Cars and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities.
As of January 29, Robinhood was still imposing limits on the trading of GameStop, AMC, and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Holdings and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities.
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. GameStop Chair Kathy Vrabeck and board member Raul Fernandez sold shares from January 13 to January 16, making $1.4 million, and likewise, board member Lizabeth Dunn cashed in $156,700. GameStop CEO George Sherman owns over 2.3 million shares in the company, according to Bloomberg News. 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. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outside information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
Since the beginning of 2021, four members of GameStop's board of directors have sold $20 million in company stock. One of the sellers was Kurt Wolf, a former executive consultant turned money manager who joined the board in 2020. Hestia Capital, Wolf's investment fund, unloaded more than two-thirds of its stake in GameStop in January, grossing Wolf and his clients over $17 million. 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. GameStop CEO George Sherman owns over 2.3 million shares in the company, according to Bloomberg News. 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. GameStop moved to restrict executives and insiders from selling additional shares; however, as all the events in question were due to outside information and speculation in the public domain, the executives would not be breaking insider-trading laws, according to CBS News.
In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semetic slurs and threats. Steve Cohen his twitter account after threats to his family.
Representative Maxine Waters annouced that the House Financial Services Committee would convene a hearing entitled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide to educate Congress. Witnesses at the hearing, scheduled for February 18, will include Vladimir Tenev, Robinhood's CEO, along with Keith Gill.[needs update] In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semetic slurs and threats. Steve Cohen his twitter account after threats to his family.
Representative Maxine Waters announced that the House Financial Services Committee would convene a hearing entitled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide to educate Congress. Witnesses at the hearing, scheduled for February 18, will include Vladimir Tenev, Robinhood's CEO, along with Keith Gill.[needs update] In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semetic slurs and threats. Steve Cohen his Twitter account after threats to his family.
In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semetic slurs and threats. Steve Cohen his Twitter account after threats to his family.
In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semetic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semetic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
Following the Robinhood controversy, the World Wide Robin Hood Society, a UK-based group with the Twitter handle @robinhood dedicated to promoting the Robin Hood legend, noticed that they had risen from 350 Twitter followers to over 50,000. It is believed that their sudden increase in followers was due to confusion between the two organizations' similar names. In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language". In the aftermath of the short squeeze resulted in several financial executives hiring additional security. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language".In the aftermath of the short squeeze resulted in several financial executives hiring additional security due to online threats. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
In January 2021, a short squeeze of the stock concerning the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $1.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
In January 2021, a short squeeze of the stock concerning the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $1.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language". In the aftermath of the short squeeze resulted in several financial executives hiring additional security due to online threats. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language". Several financial executives hired additional security due to online threats. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 2021[update], the all-time highest intraday stock price for GameStop was $483.00 (nearly 190 times the record low of $2.57 in April 2020). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 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). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month.
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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The trading led to volatility in the stock of the Koss Corporation, and by selling stock the executives and directors of the company were able to earn $45 million.
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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to its 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020.
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over US$1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood sparked controversy by banning trading on Dogecoin.[unreliable source?]
In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over US$1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood then began limiting the trading on Dogecoin.
On January 28, multiple brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum, and dozens of class action lawsuits were filed against Robinhood in U.S. courts. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum, and dozens of class action lawsuits were filed against Robinhood in U.S. courts. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
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. Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to its 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020.
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 when Elon Musk tweeted "Gamestonks!". Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to its 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020.
An analysis created by Reuters concluded that due to the events that have unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes and from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. 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 when Elon Musk tweeted "Gamestonks!". Asset manager BlackRock had a roughly 13% stake in Gamestop and its stake became worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to its 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020.
An analysis by Reuters concluded that due to the events that unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes, as well as from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. 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!". Asset manager BlackRock had a roughly 13% stake in Gamestop, which was worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to the 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020.
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American Never gonna give you up chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American Never gonna give you up chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of no change Never gonna give you up brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of no change Never gonna give you up brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of no change Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of no change Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up Never gonna give you up brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
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so u want to play a game i have bots ready so do u want to play?
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Some of those investing into the stock were young teenage investors. In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasingly short exposure. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 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). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month. The r/wallstreetbets Discord server was banned on January 27 for violating the company's restrictions on hate speech. However, users quickly formed similar servers on the application, and Discord reversed its decision the next day, attempting to help the community moderate its server instead. On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. Disruptions and restrictions limiting trade have been reported on multiple brokerages such as Charles Schwab Corporation, its subsidiary, TD Ameritrade, and Robinhood. According to Bloomberg, US trading volumes (by share count) on January 27 exceeded the peak set in October 2008 during the financial crisis, and was the third-highest in dollar terms within the last 13 years on record. On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations. Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses. As of January 29, Robinhood was still imposing limits on the trading of GameStop, AMC, and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Holdings and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities. On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. 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.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. 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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Some of those investing into the stock were young teenage investors. In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasingly short exposure. After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 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). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month. The r/wallstreetbets Discord server was banned on January 27 for violating the company's restrictions on hate speech. However, users quickly formed similar servers on the application, and Discord reversed its decision the next day, attempting to help the community moderate its server instead. On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. Disruptions and restrictions limiting trade have been reported on multiple brokerages such as Charles Schwab Corporation, its subsidiary, TD Ameritrade, and Robinhood. According to Bloomberg, US trading volumes (by share count) on January 27 exceeded the peak set in October 2008 during the financial crisis, and was the third-highest in dollar terms within the last 13 years on record. On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations. Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses. As of January 29, Robinhood was still imposing limits on the trading of GameStop, AMC, and Blackberry stocks. On January 30, Robinhood announced it had increased the restrictions from the sale of 13 securities to 50, including companies such as Rolls-Royce Holdings and Starbucks Corporation. However, on January 31, Robinhood announced it had removed several of these restrictions and would only limit the sale of eight securities. On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. 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.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
Many retail investors and r/wallstreetbets user bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. In an "ask me anything session" on r/wallstreetbets, entrepreneur Mark Cuban also encouraged GameStop buyers to hold on to their stock in they were able to. As the stock prices continued to decline, many retail investors suffered significant losses.
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.
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. As the stock prices continued to decline, investors who held on to their shares suffered significant losses.
Many retail investors and r/wallstreetbets user bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. In an "ask me anything session" on r/wallstreetbets, entrepreneur Mark Cuban also encouraged GameStop buyers to hold on to their stock in they were able to. As the stock prices continued to decline, many retail investors suffered significant losses.
Many retail investors and r/wallstreetbets user bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses.
Many retail investors and r/wallstreetbets user bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum, and dozens of class action lawsuits were filed against Robinhood in U.S. courts. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and U.S. House Committee on Financial Services chair Maxine Waters announced a congressional hearing on the incident is set for February 18. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and U.S. House Committee on Financial Services chair Maxine Waters announced a congressional hearing on the incident is set for February 18. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and U.S. House Committee on Financial Services chair Maxine Waters announced a congressional hearing on the incident is set for February 18. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
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!". Asset manager BlackRock had a roughly 13% stake in Gamestop, which was worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to the 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020.
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!". Asset manager BlackRock had a roughly 13% stake in Gamestop, which was worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to the 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020. Investor Michael Burry, who paved the way for the short squeeze by investing significantly in GameStop since 2019, owned 1.7 million shares by late September and exited at around $169, making a profit of approximately $250 million.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and U.S. House Committee on Financial Services chair Maxine Waters announced a congressional hearing on the incident is set for February 18. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and U.S. House Committee on Financial Services chair Maxine Waters announced a congressional hearing on the incident set for February 18. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
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!". Asset manager BlackRock had a roughly 13% stake in Gamestop, which was worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to the 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020. Investor Michael Burry, who paved the way for the short squeeze by investing significantly in GameStop since 2019, owned 1.7 million shares by late September and exited at around $169, making a profit of approximately $250 million.
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!". Asset manager BlackRock had a roughly 13% stake in Gamestop, which was worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to the 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Similarly, investor Michael Burry acquired a 3.3% stake in GameStop in mid-2019.
In a CNBC interview, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
However, investor Michael Burry, who had acquired a 3.3% 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". In a CNBC interview, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
On February 8, the U.S. Securities and Exchange Commission released a sample letter providing guidance to companies seeking to raise capital during periods of "extreme price volatility". It requires that companies outline the related risks in their financial disclosures and encourages companies to contact the SEC prior to launching such offerings.
The short squeeze occurred while Robinhood is also facing much graver liability. On June 20, the brokerage firm was previously sued on for the wrongful death of Alexander Keranas, 20-year-old college student who saw a negative balance of $730,000 in his trading account and mistakenly believed that was the sum of money he owed. Confused, panicked, and extremely desperate, he subsequently committed suicide. His family accused Robinhood of luring inexperienced investors like their son to make risky investments in sophisticated financial instruments such as the options trading he engaged in, without providing the necessary customer support and investment guidance. In addition to wrongful death, the Illinois family's filed complaint accused Robinhood of negligent infliction of emotional distress and unfair business practices. The damages they are seeking are to be determined.
The short squeeze occurred while Robinhood is also facing much graver liability. On June 20, the brokerage firm was previously sued on for the wrongful death of Alexander Keranas, 20-year-old college student who saw a negative balance of $730,000 in his trading account and mistakenly believed that was the sum of money he owed. Confused, panicked, and extremely desperate, he subsequently committed suicide. His family accused Robinhood of luring inexperienced investors like their son to make risky investments in sophisticated financial instruments such as the options trading he engaged in, without providing the necessary customer support and investment guidance. In addition to wrongful death, the Illinois family's filed complaint accused Robinhood of negligent infliction of emotional distress and unfair business practices. The damages they are seeking are to be determined.
The short squeeze occurred while Robinhood is also facing much graver liability. On June 20, an Illinois family filed a complaint suing the brokerage firm for unfair business practices, negligent infliction of emotional distress, and the wrongful death of their son Alexander Keranas, 20-year-old college student who saw a negative balance of $730,000 in his trading account and mistakenly believed that was the sum of money he owed. Confused, panicked, and extremely desperate, he subsequently committed suicide. His family accused Robinhood of luring inexperienced investors like their son to make risky investments in sophisticated financial instruments such as the options trading he engaged in, without providing the necessary customer support and investment guidance. The damages they are seeking are to be determined.
The short squeeze occurred while Robinhood is also facing much graver liability. On June 20, an Illinois family filed a complaint suing the brokerage firm for unfair business practices, negligent infliction of emotional distress, and the wrongful death of their son Alexander Keranas, 20-year-old college student who saw a negative balance of $730,000 in his trading account and mistakenly believed that was the sum of money he owed. Confused, panicked, and extremely desperate, he subsequently committed suicide. His family accused Robinhood of luring inexperienced investors like their son to make risky investments in sophisticated financial instruments such as the options trading he engaged in, without providing the necessary customer support and investment guidance. The damages they are seeking are to be determined.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets. On February 1, GameStop short interests fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit. The data was described by Bloomberg News as "potentially an early sign that the short squeeze that propelled GameStop... has progressed."
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets. On February 1, GameStop short interests fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit. The data was described by Bloomberg News as "potentially an early sign that the short squeeze that propelled GameStop... has progressed." According to the New York Times, the viability of short selling as an investment strategy has been called in question as a result of the short squeeze.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase.Cite error: A tag is missing the closing (see the help page). 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase.Cite error: A tag is missing the closing (see the help page). 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
Several brokerage firms, including Robinhood, stated on January 29 that the restrictions were the result of clearing houses raising the required collateral for executing trades. Because there is a two-day lag between the moment when investors purchase a security and the moment cash and securities are actually exchanged, brokerage firms have to post collateral at clearing houses to guarantee the proper settlement of their clients' orders. Clearing houses include the Depository Trust & Clearing Corporation (DTCC) for equities and the Options Clearing Corporation (OCC) for options. Clearing houses must have enough collateral on hand to settle a member's outstanding transactions in the event any particular member firm fails—to prevent cascading failures of other members—and can demand additional collateral (i.e., margin calls) from members if market volatility starts to increase. Brokerage firms claimed that the increased collateral could not be provided in time, and, as a result, trading had to be halted. The DTCC, for instance, increased the total industrywide collateral requirements from $26 billion to $33.5 billion, 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". On January 29, it was reported that Robinhood had raised an additional $1 billion to protect the company from the financial pressure placed by the increased interest in particular stocks and meet the collateral requirements of clearing houses.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. In addition to Keith Gill, user "Stonksflyingup" posted on October 27, 2020 a humorous video explaining how a short position by Melvin Capital could be used to execute a short squeeze, using a scene from Chernobyl to illustrate how the hedge fund would blow up similarly to a nuclear reactor.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
An analysis by Reuters concluded that due to the events that unfolded, some of Wall Street's largest asset managers were able to realize gains both from their share stakes, as well as from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers.
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. An analysis by Reuters concluded that some of Wall Street's largest asset managers were able to realize gains both from their share stakes, as well as from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
Since January 1, executives at BlackBerry and GameStop have sold more than $22 million in stock. There is no allegation of insider trading among BlackBerry executives, according to CBS News. Three BlackBerry executives sold nearly $1.7 million of the company's stock, with one of the executives, Chief Financial Officer Steve Rai, selling all of his shares in the company excepting unvested employee stock options.
As of January 31, executives at BlackBerry and GameStop have sold more than $22 million in stock since January 1. There is no allegation of insider trading among BlackBerry executives, according to CBS News. Three BlackBerry executives sold nearly $1.7 million of the company's stock, with one of the executives, Chief Financial Officer Steve Rai, selling all of his shares in the company excepting unvested employee stock options.
As of January 31, executives at BlackBerry and GameStop have sold more than $22 million in stock since January 1. There is no allegation of insider trading among BlackBerry executives, according to CBS News. Three BlackBerry executives sold nearly $1.7 million of the company's stock, with one of the executives, Chief Financial Officer Steve Rai, selling all of his shares in the company excepting unvested employee stock options.
As of January 31, executives at BlackBerry and GameStop had sold more than $22 million in stock since January 1. There is no allegation of insider trading among BlackBerry executives, according to CBS News. Three BlackBerry executives sold nearly $1.7 million of the company's stock, with one of the executives, Chief Financial Officer Steve Rai, selling all of his shares in the company excepting unvested employee stock options.
In February 2021, it was announced that Netflix had plans to develop a movie based off the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. 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. A limited-run series based on the events titled To the Moon was also announced. Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment, and a documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works. HBO is also currently in development of a scripted film about the events from executive producers Andrew Ross Sorkin, Jason Blum, and Len Amato.
In February 2021, it was announced that Netflix had plans to develop a movie based on the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. 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. A limited-run series based on the events titled To the Moon was also announced. Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment, and a documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works. HBO is also currently in development of a scripted film about the events from executive producers Andrew Ross Sorkin, Jason Blum, and Len Amato.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations. On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. 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. An analysis by Reuters concluded that some of Wall Street's largest asset managers were able to realize gains both from their share stakes, as well as from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. 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 America—the retail buyers of stock—to flex back and push back on these hedge funds." Numerous journalists have also drawn comparison to the Occupy movement. Similar sentiments sympathetic for the retail investors were expressed by billionaire investors Mark Cuban and Chamath Palihapitiya. Palihapitiya, who passed on early investment opportunities in Robinhood, opined that the founding co-CEOs, Baiju Bhatt and Vladimir Tenev, lacked integrity and urged his followers to "#DeleteRobinhood". OpenAI CEO Sam Altman suggested the company change its name. SpaceX and Tesla CEO Elon Musk also criticized the general practice of stock shorting, calling it a "scam legal only for vestigial reasons" A number of major hedge funds had previously shorted Tesla, incurring losses of more than $40 billion as the stock rose considerably. 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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations. On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. 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. An analysis by Reuters concluded that some of Wall Street's largest asset managers were able to realize gains both from their share stakes, as well as from lending out stocks to short sellers. Similarly, an analysis by investment bank JP Morgan Chase suggested that institutional investors were heavily involved in the trading activity related to the short squeeze. Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. 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 America—the retail buyers of stock—to flex back and push back on these hedge funds." Numerous journalists have also drawn comparison to the Occupy movement. Similar sentiments sympathetic for the retail investors were expressed by billionaire investors Mark Cuban and Chamath Palihapitiya. Palihapitiya, who passed on early investment opportunities in Robinhood, opined that the founding co-CEOs, Baiju Bhatt and Vladimir Tenev, lacked integrity and urged his followers to "#DeleteRobinhood". OpenAI CEO Sam Altman suggested the company change its name. SpaceX and Tesla CEO Elon Musk also criticized the general practice of stock shorting, calling it a "scam legal only for vestigial reasons" A number of major hedge funds had previously shorted Tesla, incurring losses of more than $40 billion as the stock rose considerably. 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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
Following the stock market surge, futures for silver began to rapidly increase as well, although later news reports clarified that it was unclear who was behind the rise. On January 28 and 29, the price of silver rose 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading being halted at least once as the price fell by double-digit percentages. Users on r/wallstreetbets deny involvement in the increasing price of silver, instead blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
Following the stock market surge, futures for silver began to rapidly increase as well, although later news reports clarified that it was unclear who was behind the rise. On January 28 and 29, the price of silver rose 10 percent. The surge also had an effect on the prices of gold and copper on the London Metal Exchange. On February 1, the price of silver hit an eight-year high as GameStop shares continued their volatile tendency, with trading[which?] being halted at least once as the price fell by double-digit percentages. Users on r/wallstreetbets deny involvement in the increasing price of silver, instead blaming the increase on institutions and hedge funds with positions in silver, such as Citadel, seeking to offset losses on GameStop.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet-food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Similarly, investor Michael Burry acquired a 3.3% stake in GameStop in mid-2019.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online petfood retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Similarly, investor Michael Burry acquired a 3.3% stake in GameStop in mid-2019.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on the subreddit r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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.
In addition to Keith Gill, user "Stonksflyingup" posted on October 27, 2020 a humorous video explaining how a short position by Melvin Capital could be used to execute a short squeeze, using a scene from Chernobyl to illustrate how the hedge fund would blow up similarly to a nuclear reactor.
Another user, "Stonksflyingup," posted a humorous video on October 27, 2020, explaining how a short position by Melvin Capital could be used to execute a short squeeze, using a scene from Chernobyl to illustrate how the hedge fund would blow up similarly to a nuclear reactor.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. He stated on January 29, 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. On January 27, technology news website Mashable reported that the subreddit had broken pageview records due to the short squeeze, receiving 73 million pageviews in 24 hours. r/wallstreetbets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. 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. 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. r/wallstreetbets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
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. r/wallstreetbets was the fastest-growing subreddit – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
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. r/wallstreetbets was the fastest-growing subreddit at the time – the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29.
On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. Disruptions and restrictions limiting trade have been reported on multiple brokerages such as Charles Schwab Corporation, its subsidiary, TD Ameritrade, and Robinhood. According to Bloomberg, US trading volumes (by share count) on January 27 exceeded the peak set in October 2008 during the financial crisis, and was the third-highest in dollar terms within the last 13 years on record.
On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. Disruptions and restrictions limiting trade have been reported on multiple brokerages such as Charles Schwab Corporation, its subsidiary TD Ameritrade, and Robinhood. According to Bloomberg, US trading volumes (by share count) on January 27 exceeded the peak set in October 2008 during the financial crisis, and was the third-highest in dollar terms within the last 13 years on record.
On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. Disruptions and restrictions limiting trade have been reported on multiple brokerages such as Charles Schwab Corporation, its subsidiary TD Ameritrade, and Robinhood. According to Bloomberg, US trading volumes (by share count) on January 27 exceeded the peak set in October 2008 during the financial crisis, and was the third-highest in dollar terms within the last 13 years on record.
On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. Disruptions and restrictions limiting trade have been reported on multiple brokerages such as Charles Schwab Corporation, its subsidiary TD Ameritrade, and Robinhood. According to Bloomberg, U.S. trading volumes (by share count) on January 27 exceeded the peak set in October 2008 during the financial crisis, and was the third-highest in dollar terms within the last 13 years on record.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze, and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.
The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language". Several financial executives hired additional security due to online threats. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen canceled his Twitter account after threats to his family.
The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language". Several financial executives hired additional security due to online threats. Gabe Plotkin of Melvin Capital hired security after facing anti-semitic slurs and threats. Steve Cohen deleted his Twitter account after threats to his family.
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. Google deleted at least 100,000 such reviews, calling them "coordinated or inorganic". However, after another round of negative reviews on the app dropping it to a 1.1-star rating, Google confirmed that the new reviews do not violate Google policies and will not be removed. Protesters also showed up outside Robinhood headquarters in Menlo Park, California, at the Securities and Exchange Commission headquarters in Washington, D.C., and the New York Stock Exchange.
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. Google deleted at least 100,000 such reviews, calling them "coordinated or inorganic". However, after another round of negative reviews on the app dropping it to a 1.1-star rating, Google confirmed that the new reviews do not violate Google policies and will not be removed. Protesters also showed up outside Robinhood headquarters in Menlo Park, California, at the Securities and Exchange Commission headquarters in Washington, D.C., and the New York Stock Exchange. Menlo Park police reported ten separate incidents related to protests at Robinhood headquarters from January 28 to February 9, including a man throwing animal feces at the building's front door.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as their were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as they were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years. In fact, before the GameStop short squeeze, many market participants thought that shorting more than 100% of a stock was impossible.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years. In fact, before the GameStop short squeeze, many market participants thought that shorting more than 100% of a stock was impossible.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years. In fact, before the GameStop short squeeze, even many market professionals thought that shorting more than 100% of a stock was impossible.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years. In fact, before the GameStop short squeeze, even many market professionals thought that shorting more than 100% of a stock was impossible.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the 10 years preceding this event.. In fact, before the GameStop short squeeze, even many market professionals thought that shorting more than 100% of a stock was impossible.
Representative Maxine Waters announced that the House Financial Services Committee would convene a hearing entitled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide to educate Congress. Witnesses at the hearing, scheduled for February 18, will include Vladimir Tenev, Robinhood's CEO, along with Keith Gill.[needs update]
Representative Maxine Waters announced that the House Financial Services Committee would convene a hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18, will include Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, and Robinhood CEO Vladimir Tenev.[needs update]
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. However, in September 2020, Ryan Cohen (the former CEO of online pet food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Similarly, investor Michael Burry acquired a 3.3% stake in GameStop in mid-2019. Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the 10 years preceding this event.. In fact, before the GameStop short squeeze, even many market professionals thought that shorting more than 100% of a stock was impossible. The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. On January 22, 2021, approximately 140 percent of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. 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.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. On January 22, 2021, approximately 140 percent of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. Analysts at Goldman Sachs later noted that short interest exceeding 100% of a company's public had only occurred 15 times in the prior 10 years. However, in September 2020, Ryan Cohen (the former CEO of online pet food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Similarly, investor Michael Burry acquired a 3.3% stake in GameStop in mid-2019. The subreddit r/wallstreetbets is an online community on Reddit, a social news website. The community is known for discussion around high-risk stock transactions. 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.
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood". 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". Texas Attorney General Ken Paxton said he would also investigate the decision of brokerages to limit the buying of securities related to GameStop and other stocks, saying that it "stinks of corruption". His investigation has extended to 13 entities, including Discord, Robinhood, the trading platforms Interactive Brokers and TD Ameritrade, and Citadel Financial. On January 29, the U.S. Securities and Exchange Commission announced it was reviewing the incident with the aims "to protect retail investors" from "abusive or manipulative trading activity" and "to identify and pursue potential wrongdoing". Representative Maxine Waters announced that the House Financial Services Committee would convene a hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18, will include Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, and Robinhood CEO Vladimir Tenev.[needs update]
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
On January 29, the U.S. Securities and Exchange Commission announced it was reviewing the incident with the aims "to protect retail investors" from "abusive or manipulative trading activity" and "to identify and pursue potential wrongdoing".
Representative Maxine Waters announced that the House Financial Services Committee would convene a hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18, will include Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, and Robinhood CEO Vladimir Tenev.
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".
Texas Attorney General Ken Paxton said he would also investigate the decision of brokerages to limit the buying of securities related to GameStop and other stocks, saying that it "stinks of corruption". His investigation has extended to 13 entities, including Discord, Robinhood, the trading platforms Interactive Brokers and TD Ameritrade, and Citadel Financial. [needs update]
On February 8, the U.S. Securities and Exchange Commission released a sample letter providing guidance to companies seeking to raise capital during periods of "extreme price volatility". It requires that companies outline the related risks in their financial disclosures and encourages companies to contact the SEC prior to launching such offerings.
On February 8, the U.S. Securities and Exchange Commission released a sample letter providing guidance to companies seeking to raise capital during periods of "extreme price volatility". It requires that companies outline the related risks in their financial disclosures and encourages companies to contact the SEC prior to launching such offerings.
On January 29, the U.S. Securities and Exchange Commission announced it was reviewing the incident with the aims "to protect retail investors" from "abusive or manipulative trading activity" and "to identify and pursue potential wrongdoing".
On January 29, the U.S. Securities and Exchange Commission announced it was reviewing the incident with the aims "to protect retail investors" from "abusive or manipulative trading activity" and "to identify and pursue potential wrongdoing".
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 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). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month.
A brief, sharp rise in the share price to over $200 followed a tweet by Elon Musk. As of January 28, 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). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month.
On February 8, the U.S. Securities and Exchange Commission released a sample letter providing guidance to companies seeking to raise capital during periods of "extreme price volatility". It requires that companies outline the related risks in their financial disclosures and encourages companies to contact the SEC prior to launching such offerings. A Robinhood customer filed a class-action lawsuit against the company on January 28 for halting trading on GameStop. The lawsuit, which was filed in the United States District Court for the Southern District of New York, claimed that Robinhood "purposefully, willfully, and knowingly removing the stock 'GME' from its trading platform in the midst of an unprecedented stock rise thereby deprived retail investors of the ability to invest in the open-market"; the lawsuit also accused Robinhood of "manipulating the open-market". Several other investors began using the app DoNotPay to automatically join the lawsuit. A second class-action was filed in the Northern District of Illinois claiming that Robinhood's decision to halt trades of BlackBerry, Nokia and AMC was made "to protect institutional investment at the detriment of retail customers". 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." As of February 2, Robinhood was facing 34 separate class-action lawsuits.
A Robinhood customer filed a class-action lawsuit against the company on January 28 for halting trading on GameStop. The lawsuit, which was filed in the United States District Court for the Southern District of New York, claimed that Robinhood "purposefully, willfully, and knowingly removing the stock 'GME' from its trading platform in the midst of an unprecedented stock rise thereby deprived retail investors of the ability to invest in the open-market"; the lawsuit also accused Robinhood of "manipulating the open-market". Several other investors began using the app DoNotPay to automatically join the lawsuit. A second class-action was filed in the Northern District of Illinois claiming that Robinhood's decision to halt trades of BlackBerry, Nokia and AMC was made "to protect institutional investment at the detriment of retail customers". 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." As of February 2, Robinhood was facing 34 separate class-action lawsuits. On February 8, the U.S. Securities and Exchange Commission released a sample letter providing guidance to companies seeking to raise capital during periods of "extreme price volatility". It requires that companies outline the related risks in their financial disclosures and encourages companies to contact the SEC prior to launching such offerings.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years.In fact, before the GameStop short squeeze, many market participants thought that shorting more than 100% of a stock was impossible.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years.In fact, before the GameStop short squeeze, many market participants thought that shorting more than 100% of a stock was impossible.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years.In fact, before the GameStop short squeeze, many market participants thought that shorting more than 100% of a stock was impossible.
Short interest was unusually high in GameStop stock, with short interest reaching 140%. Short interest levels have only exceeded 100% of ANY company’s float 15 times in the last 10 years.In fact, before the GameStop short squeeze, many market participants thought that shorting more than 100% of a stock was impossible.
A brief, sharp rise in the share price to over $200 followed a tweet by Elon Musk. As of January 28, 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). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month.
After GameStop's stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted "Gamestonk!!"[b] along with a link to the r/wallstreetbets subreddit. A brief, sharp rise in the share price to over $200 followed Musk's tweet. As of January 28, 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). In pre-market trading hours the same day, it briefly hit over $500, up from $17.25 at the start of the month.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as they were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses. According to The Washington Post, some r/wallstreetbets users lost an important part of their savings.
Many retail investors and r/wallstreetbets users bought shares of GameStop and other affected securities as they were reaching their peak prices or shortly afterwards. 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. 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. As the stock prices continued to decline, many retail investors suffered significant losses, with some r/wallstreetbets users losing an important part of their savings.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. The short squeezed securities's prices continued to decline during the week.
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. As the stock prices continued to decline, investors who held on to their shares suffered significant losses.
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. As the stock prices continued to decline, some of the recent investors held on to their shares, and suffered significant losses.
Another user, "Stonksflyingup," posted a humorous video on October 27, 2020, explaining how a short position by Melvin Capital could be used to execute a short squeeze, using a scene from Chernobyl to illustrate how the hedge fund would blow up similarly to a nuclear reactor.
Another user, "Stonksflyingup", posted a humorous video on October 27, 2020, explaining how a short position by Melvin Capital could be used to execute a short squeeze, using a scene from Chernobyl to illustrate how the hedge fund would blow up similarly to a nuclear reactor.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities should have taken place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities should have taken place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasingly short exposure.
In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasing short gamma exposure (from options previously sold to other parties).
On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations.
On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. eToro also created stop-losses on GME positions, without notifying its users, and removed the ability to alter or delete the stop-loss, triggering an artificial decline in value as the stop-losses were triggered. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations.
On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. eToro also created stop-losses on GME positions, without notifying its users, and removed the ability to alter or delete the stop-loss, triggering an artificial decline in value as the stop-losses were triggered. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations.
On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. Other brokerages soon followed suit. Many traders were furious, and called for class-action lawsuits in multiple popular Reddit posts. After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue. Anthony Denier, the CEO of Webull, stated that increased collateral requirements for their clearing house meant Webull themselves were restricted from opening new positions. Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations.
In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasing short gamma exposure (from options previously sold to other parties).
In conjunction with the short squeeze, the resulting increase in options volume triggered a gamma squeeze as a result of market makers needing to buy shares to hedge their increasing short gamma exposure (from options previously sold to other parties).[clarification needed]
A second class-action was filed in the Northern District of Illinois claiming that Robinhood's decision to halt trades of BlackBerry, Nokia and AMC was made "to protect institutional investment at the detriment of retail customers". 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." As of February 2, Robinhood was facing 34 separate class-action lawsuits.
A second class-action was filed in the Northern District of Illinois claiming that Robinhood's decision to halt trades of BlackBerry, Nokia and AMC was made "to protect institutional investment at the detriment of retail customers". 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." As of February 2, Robinhood was facing 34 separate class-action lawsuits. 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. The investor sold $200,000 of call options when they were worth under call options $100 a share and was forced to buy them back much later. The suit alleges Gill misreprestented himself as an amateur investor to inflate the stock price.
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. The investor sold $200,000 of call options when they were worth under call options $100 a share and was forced to buy them back much later. The suit alleges Gill misreprestented himself as an amateur investor to inflate the stock price.
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. The suit alleges Gill misreprestented himself as an amateur investor to inflate the stock price.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Senator Ted Cruz, Representatives Ro Khanna, Ted Lieu, Alexandria Ocasio-Cortez, and Rashida Tlaib, Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Alexandria Ocasio-Cortez, Senator Ted Cruz, Representatives Ro Khanna, Ted Lieu, and Rashida Tlaib, Fox Business host Charles Payne, and conservative political commentators Rush Limbaugh, Ben Shapiro, and Donald Trump Jr.
Suggested factors included a culture of taking massive gambles on the stock market in the hopes of making money quickly, anger of some investors towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008, or the general democratization of the stock market coupled with the ability of retail traders to communicate instantaneously through social media.
Suggested factors included anger of some investors towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008, or the general democratization of the stock market coupled with the ability of retail traders to communicate instantaneously through social media.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. The short squeezed securities's prices continued to decline during the week.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. The short squeezed securities prices continued to decline during the week.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. The short squeezed securities prices continued to decline during the week.
On February 1 and 2, the stock price for GameStop declined substantially, losing more than 80 percent of its value from its intraday peak price, recorded during the previous week. GameStop shares lost 60 percent of their value on February 2, closing below $100 for the first time in a week. Reports estimated that about $27 billion in value had been erased. Other assets affected by the short squeeze and put under company trading restrictions, such as AMC and Blackberry shares, also declined in value. CNN reported that the drop was partly due to restrictions imposed by Robinhood and other brokers on the number of shares that could be purchased at once by their clients. The short squeezed securities' prices continued to decline during the week.
On February 18, 2021, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on this issue. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
Representative Maxine Waters announced that the House Financial Services Committee would convene a hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18, will include Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, and Robinhood CEO Vladimir Tenev.
On January 28, the House Financial Services Committee announced that it would convene a hearing to discuss online trading platforms.
On February 18, 2021, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on this issue. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and U.S. House Committee on Financial Services chair Maxine Waters announced a congressional hearing on the incident set for February 18. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and the U.S. House Committee on Financial Services held congressional hearing on the incident. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. Members also discussed a possibly greater regulation of short-selling.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. Members also discussed a possibly greater regulation of short-selling.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
Alleged conflict of interest between Robinhood and Citadel
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. Bloomberg News had previously reported that 40 percent of Robinhood's revenue was derived from selling customer orders to market-making firms including Citadel Securities and Two Sigma Securities, in a practice known as payment for order flow. The Washington Post reported that Robinhood routed more than half of its customer orders to Citadel, which was its largest market making partner by volume. Citadel Securities is the sister company to Citadel LLC, which along with Point72 Asset Management invested $2.75 billion into Melvin Capital. As Robinhood restricted trading of GameStop shares, thereby limiting the growth of the stock's value, users alleged that Citadel Securities directed Robinhood to do so. Citadel Securities stated that they did not instruct any brokerage to suspend or otherwise limit trading, and Robinhood denied that it had been pressured by Citadel.
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. Bloomberg News had previously reported that 40 percent of Robinhood's revenue was derived from selling customer orders to market-making firms including Citadel Securities and Two Sigma Securities, in a practice known as payment for order flow. The Washington Post reported that Robinhood routed more than half of its customer orders to Citadel, which was its largest market making partner by volume. Citadel Securities is the sister company to Citadel LLC, which along with Point72 Asset Management invested $2.75 billion into Melvin Capital. As Robinhood restricted trading of GameStop shares, thereby limiting the growth of the stock's value, users alleged that Citadel Securities directed Robinhood to do so. Citadel Securities stated that they did not instruct any brokerage to suspend or otherwise limit trading, and Robinhood denied that it had been pressured by Citadel. During the February 18 hearing held by the House Financial Services Committee, Citadel CEO Kenneth Griffin and Robinhood CEO Vlad Tenev faced questioning regarding their relationship and denied that the limits imposed on the trading of GameStop shares had been requested by Citadel.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing, scheduled for February 18 included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
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. The suit alleges Gill misreprestented himself as an amateur investor to inflate the stock price.
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. The suit alleges Gill misrepresented himself as an amateur investor to inflate the stock price.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and the U.S. House Committee on Financial Services held congressional hearing on the incident. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
On January 28, some brokerages, including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and the U.S. House Committee on Financial Services held a congressional hearing on the incident. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why did curb the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why the brokerage had limited the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26. The exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets. On February 1, GameStop short interests fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit. The data was described by Bloomberg News as "potentially an early sign that the short squeeze that propelled GameStop... has progressed."
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 Asset Management's investment added $750 million, for a total investment of $2.75 billion, before Melvin told CNBC that they covered (closed) their position on January 26, although the exact amount was not disclosed. 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. On January 26, it was reported that short sellers lost a total of $6 billion due to the squeeze. On January 27, a Melvin Capital spokesperson stated that the fund had closed its position after repositioning its portfolio. Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion in assets. On February 1, GameStop short interests fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit. The data was described by Bloomberg News as "potentially an early sign that the short squeeze that propelled GameStop... has progressed."
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, and Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
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. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. The White House said that it was open to studying the impacts of a financial transaction tax, which would meet opposition from Wall Street and trading firms. According to a 2018 estimate by the nonpartisan Congressional Budget Office, a 0.1% tax on stock, bond and derivative transactions could raise $777 billion for the federal government over a decade. Speaker of the House Nancy Pelosi said that Congress will also be reviewing it. Senator Sherrod Brown announced that the Senate Banking Committee would hold a hearing on the state of the stock market and the alleged market manipulation surrounding the GameStop short squeeze. Representative Byron Donalds called for Congress to launch "an immediate investigation into Citadel, L.L.C. and Robinhood".
On January 28, the House Financial Services Committee announced that it would convene a hearing to discuss online trading platforms. On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why the brokerage had limited the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
On January 28, the House Financial Services Committee announced that it would convene a hearing to discuss online trading platforms.On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why the brokerage had limited the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
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. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. The White House said that it was open to studying the impacts of a financial transaction tax, which would meet opposition from Wall Street and trading firms. According to a 2018 estimate by the nonpartisan Congressional Budget Office, a 0.1% tax on stock, bond and derivative transactions could raise $777 billion for the federal government over a decade.
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. Yellen convened a meeting of financial regulators, including the heads of the 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. Because Yellen had received speaking fees from Citadel before becoming treasury secretary, she sought and received permission from Treasury Department ethics lawyers before convening the meeting. The regulators were not seen as likely to view the volatility as creating any systemic risks. The White House said that it was open to studying the impacts of a financial transaction tax, which would meet opposition from Wall Street and trading firms. According to a 2018 estimate by the nonpartisan Congressional Budget Office, a 0.1% tax on stock, bond and derivative transactions could raise $777 billion for the federal government over a decade.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. On January 22, 2021, approximately 140 percent of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. Analysts at Goldman Sachs later noted that short interest exceeding 100% of a company's public had only occurred 15 times in the prior 10 years. However, in September 2020, Ryan Cohen (the former CEO of online pet food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Similarly, investor Michael Burry acquired a 3.3% stake in GameStop in mid-2019. 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!". Asset manager BlackRock had a roughly 13% stake in Gamestop, which was worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30% rise in its value based in part due to the 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020. In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over US$1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20% in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood then began limiting the trading on Dogecoin. The White House said that it was open to studying the impacts of a financial transaction tax, which would meet opposition from Wall Street and trading firms. According to a 2018 estimate by the nonpartisan Congressional Budget Office, a 0.1% tax on stock, bond and derivative transactions could raise $777 billion for the federal government over a decade. However, investor Michael Burry, who had acquired a 3.3% 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". In a CNBC interview, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
GameStop, an American chain of brick-and-mortar video game stores, had struggled in recent years due to competition from digital distribution services, as well as the economic effects of the COVID-19 pandemic, which reduced the number of people who shopped in-person. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. On January 22, 2021, approximately 140 percent of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. Analysts at Goldman Sachs later noted that short interest exceeding 100 percent of a company's public had only occurred 15 times in the prior 10 years. However, in September 2020, Ryan Cohen (the former CEO of online pet food retailer Chewy) revealed a significant investment in GameStop and joined the company's board, leading some to believe that the stock was undervalued. Similarly, investor Michael Burry acquired a 3.3-percent stake in GameStop in mid-2019. 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!". Asset manager BlackRock had a roughly 13-percent stake in Gamestop, which was worth $2.6 billion at the peak. Mudrick Capital Management made a profit of close to $200 million in January 2021 on its holdings of AMC debt, and a profit of $50 million writing call options on AMC and GameStop stock. The mutual fund Morgan Stanley Institutional Inception saw a 30-percent rise in its value based in part due to the 346,943 Gamestop shares it had purchased in September 2020. 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 more than the company was valued in 2020. In reaction to brokerages halting the buying of GameStop and other securities, the combined market capitalization of all cryptocurrencies increased to over US$1 trillion, with Dogecoin's value increasing over 800 percent. Users of the subreddits r/CryptoCurrency and r/SatoshiStreetBets attempted to pump up Dogecoin to make it "the next GME/Bitcoin". In addition, the price of Bitcoin, the world's largest cryptocurrency, increased 20 percent in value to more than $37,000 after Elon Musk endorsed it in his Twitter bio, partially related to the surge in the GameStop share price by Reddit users.[additional citation(s) needed] Robinhood then began limiting the trading on Dogecoin. The White House said that it was open to studying the impacts of a financial transaction tax, which would meet opposition from Wall Street and trading firms. According to a 2018 estimate by the nonpartisan Congressional Budget Office, a 0.1-percent tax on stock, bond and derivative transactions could raise $777 billion for the federal government over a decade. 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". In a CNBC interview, billionaire investor and hedge fund manager Leon Cooperman angrily criticized the Reddit users' market behavior, calling it a result of the federal response to the pandemic and stating that it would "end in tears" for the retail investors.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. 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.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. 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.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. 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.
Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", 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. 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. He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. 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.
On January 28, the House Financial Services Committee announced that it would convene a hearing to discuss online trading platforms. On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why the brokerage had limited the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Keith Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
On January 28, the House Financial Services Committee announced that it would convene a hearing to discuss online trading platforms. On February 18, the House Financial Services Committee, chaired by Representative Maxine Waters, held a remote hearing titled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. Witnesses at the hearing included Reddit user and investor Keith Gill, Citadel CEO Ken Griffin, Reddit CEO Steve Huffman, Melvin Capital CEO Gabriel Plotkin, Robinhood CEO Vladimir Tenev and Cato Institute financial regulation expert Jennifer J. Schulp. Representatives focused their attention on Robinhood's role in the event, asking Vladimir Tenev why the brokerage had limited the trading of some securities and if it had clearly communicated its business model to its customers. 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. Several members expressed skepticism at the practice of payment for order flow and engaged Vladimir Tenev and Kenneth Griffin on the issue. Representative Brad Sherman accused Griffin of trying to evade his questions. At various points during his initial testimony and questioning, Keith Gill made references to memes. Members also discussed a possibly greater regulation of short-selling.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even farther. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased.
On February 24, GameStop share prices doubled in heavy volume in final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailed Express and communications software group BlackBerry.
On February 24, GameStop share prices doubled in heavy volume in final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailed Express and communications software group BlackBerry.
On February 24, GameStop share prices doubled in heavy volume in final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailed Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half and hour, Reddit said that systems were beginning to recover.
On February 24, GameStop share prices doubled in heavy volume in final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailed Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half and hour, Reddit said that systems were beginning to recover.
On February 24, GameStop share prices doubled in heavy volume in final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half and hour, Reddit said that systems were beginning to recover.
On February 24, GameStop share prices doubled in heavy volume in final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half and hour, Reddit said that systems were beginning to recover.
On February 24, GameStop share prices doubled in heavy volume in the final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
In February 2021, it was announced that Netflix had plans to develop a movie based on the events. Mark Boal is in negotiations to write, and Noah Centineo is set to star in the film. 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. A limited-run series based on the events titled To the Moon was also announced. Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment, and a documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works. HBO is also currently in development of a scripted film about the events from executive producers Andrew Ross Sorkin, Jason Blum, and Len Amato.
In February 2021, Deadline Hollywood reported on Netflix's plans to develop a movie based on the events, with Mark Boal in negotiations to write and Noah Centineo set to star in the film. 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. A limited-run series based on the events titled To the Moon was also announced. Jaime Rogozinski, who founded r/wallstreetbets in 2012, sold the rights to his life story to RatPac Entertainment, and a documentary based on the event, created by the studios XTR and The Optimist and partially funded by a Kickstarter campaign, is also in the works. HBO is also currently in development of a scripted film about the events from executive producers Andrew Ross Sorkin, Jason Blum, and Len Amato.
On February 24, GameStop share prices doubled in heavy volume in the final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
On February 24, GameStop share prices doubled in heavy volume in the final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'.
On February 24, GameStop share prices doubled in heavy volume in the final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'.
On February 24, GameStop share prices doubled in heavy volume in the final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
On February 24, GameStop share prices doubled in heavy volume in the final 90 minutes of trading, with the company's stock halting shortly before the closing bell at $91.70, a 104% gain. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
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 the closing bell at $91.70, a 104% gain. Gaines continued in after-hours trading, nearing an additional 100%. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
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 the closing bell at $91.70, a 104% gain. Gaines continued in after-hours trading, nearing an additional 100%. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
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 the closing bell at $91.70, a 104% gain. Gains continued in after-hours trading, nearing an additional 100%. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
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 the closing bell at $91.70, a 104% gain. Gains continued in after-hours trading, nearing an additional 100%. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. A reason for the sudden surge could not be identified. The jump comes a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
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 the closing bell at $91.70, a 104% gain. Gains continued in after-hours trading, nearing an additional 100%. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. As of January 25, here was no consensus on the causes of the sudden surge. The jump came a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
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 the closing bell at $91.70, a 104% gain. Gains continued in after-hours trading, nearing an additional 100%. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. As of January 25, here was no consensus on the causes of the sudden surge. The jump came a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, the entire Reddit site was down for many users, although the company did not identify the cause of the outage; within half an hour, Reddit said that systems were beginning to recover.
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% gain. Gains continued in after-hours trading, nearing an additional 100%. Similar gains, although not as high, were reported with cinema operator AMC, clothing retailer Express and communications software group BlackBerry. As of February 25, there was no consensus on the causes of the sudden surge. The jump came a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate Gamestop's transformation'. Following the rise, Reddit went down for many users. The company did not identify the cause of the outage, but, within half an hour, Reddit said that systems were beginning to recover.
Another user, "Stonksflyingup", posted a humorous video on October 27, 2020, explaining how a short position by Melvin Capital could be used to execute a short squeeze, using a scene from Chernobyl to illustrate how the hedge fund would blow up similarly to a nuclear reactor.
Another user, Stonksflyingup, posted a humorous video on October 27, 2020, explaining how a short position by Melvin Capital could be used to execute a short squeeze, using a scene from Chernobyl to illustrate how the hedge fund would blow up similarly to a nuclear reactor.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Some of those investing into the stock were young teenage investors.
In January 2021, Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop, pushing up the 91 price significantly. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Some of those investing into the stock were young teenage investors.
In January 2021, Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop, pushing up the 91 price significantly. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Some of those investing into the stock were young teenage investors.
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. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. 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. According to Dow Jones market data, more than 175 million shares of GameStop were traded on January 25, the second largest total in a single day, surpassing its 30-day average volume of 29.8 million shares. Some of those investing into the stock were young teenage investors.
