You may have heard of the recent blood bath on Wall Street when major hedge funds lost billions of dollars this past Wednesday (Jan 27, 2021), when the little people rose up using the same tricks the hedge funds often play and started buying stocks in a little known business called Gamestop in order to drive up the price.
Apparently, the big time hedge fund investors on Wall Street had bet the company’s stocks would go down. It is called shorting a stock. However, when thousands of people from Reddit started buying Gamestop, its stock prices skyrocketed instead and the hedge funds lost billions at the game they usually play at our expense.
The Daily Caller explains:
Short-sellers of GameStop, investors who bet that the price of the stock would go down, had reportedly lost more than $5 billion dollars through Wednesday. Retail investors in the WSB community executed a “short squeeze” on the stock in recent days, meaning they purchased shares to drive the price up and cause the hedge funds that shorted the stock to lose big on their investments.
Things turned around somewhat Thursday, according to Bloomberg. The S&P 500 was up about 1% and GameStop’s price fell almost 50% during normal market hours after several investing platforms blocked users from purchasing more shares.
READ: ‘Worst On Record’: The Numbers Are In, And So Far Wall Street’s Hedges Took An Absolute Bath Thanks To Reddit
Then some stockbrokers/apps that were used to buy and sell the stocks in Gamestop and other companies, would not allow their clients to buy these stocks for a day. This effectively, stopped Gamestop’s stock from rising any more. Some allege it was done to give the hedge funds time to get out of their deals before they lost billions more.
One of those companies that allegedly would not allow its clients to buy more stocks in Gamestop was an app called Robinhood. Of course, Big Tech came to its rescue. READ: Google deletes 100,000 negative reviews of Robinhood on app store
In turn, the little people lost money. Many were not impressed.
And in case some are wondering whose side President Joe Biden will be on READ: Top Biden Official Received Big Bucks from Firm at Center of GameStop Controversy
And just in case there is a tear in your eye for what happened to the hedge funds, about a year back, Tucker Carlson talked about what one hedge fund did to a successful business in America:
Language warning for the video below:
UNBELIEVABLE that Democrat Ocasio-Cortez, and Republicans Ted Cruz and Donald Trump Jr would agree on anything. READ: Ted Cruz and AOC Agree That Robinhood’s Freeze of GameStop Trading is Unacceptable