Quote:
Originally Posted by lezinterracial
Yep. gme has been going crazy due to /r/wallstreetbets
wallstreetbets
Conflict was created because wallstreetbets told people to buy it, and some hedge funds said they were going to short it. |
Yeah thats the basic of it but its a lot more detailed.
Some short seller got his stock set up to make a killing with on GameStop. ( For those of you who dont know, short selling is a bet that the stock will plummet Not just fall. )
Game stop had announced that they were making some changes and that cause the intial rise in the shares. The Short seller then announces on YouTube and I believe twitter that the price for GameStop is over valued and the company has many issues.
He used a social platform to try and drop the price so that he could get his millions.
Some reddit guys saw the video and went wait a min. GameStop is for gamers and we dont like to be pushed around so this idiot can clean up. ( lots of redit users are gamers ) so they started telling friends to buy the shares and the price went higher.
It got so high the short seller had to bail and he lost a lot of money.
Now the short seller is screaming to Mommy ( FTC ) to investigate the use of a social board to stop people from inflating the price of a stock. He is even calling for a halt is share sales.
Kind of sounds like what happened to Nikola. A short seller outed them for a number of issues and over valuation.