kdonnel
DVC-BCV
- Joined
- Feb 1, 2001
- Messages
- 7,308
I group of people on Reddit bankrupted a hedge fund and presumable made a fortune in the process.
Someone in the group noticed that a hedge fund had a massive amount of short trades against GameStop. That person convinced many in the group to join forces and buy as much GameStop stock as possible. This drove the price of the stock through the roof through this artificial demand.
The price rose so much that the hedge fund was forced to try and cover their short positions to the tune of over 13 billion. The hedge fund is in the process of declaring bankruptcy.
Trading firms are now saying it must have been illegal for the public to join together.
It looks like the same group has targeted other stocks as well, AMC, American Airlines, BlackBerry and others.
Someone in the group noticed that a hedge fund had a massive amount of short trades against GameStop. That person convinced many in the group to join forces and buy as much GameStop stock as possible. This drove the price of the stock through the roof through this artificial demand.
The price rose so much that the hedge fund was forced to try and cover their short positions to the tune of over 13 billion. The hedge fund is in the process of declaring bankruptcy.
Trading firms are now saying it must have been illegal for the public to join together.
It looks like the same group has targeted other stocks as well, AMC, American Airlines, BlackBerry and others.