Apparently the ongoing short squeeze of GameStop and other securities traded on the New York Stock Exchange and the NASDAQ appears to be primarily driven by users of the subreddit r/WallStreetBets.
I think many members of the wallstreetbets subreddit use the Robinhood app to trade stocks and options.
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Looks like The Epoch Times have just published an article on the topic.
Organized Small Investors Plan to Crush Hedge Funds by Buying GameStop Stock
The Epoch Times
by Petr Svab
Jan. 27, 2021
Excerpt:
…
A sizable group of small investors has threatened to bankrupt Wall Street hedge funds that have sought to profit from the downfall of the video game retailer GameStop. The investors have organized online to buy GameStop’s stock, forcing billions in losses on the establishment players that had bet on the company’s failure.
The exact origin of the phenomenon is hard to pinpoint but some have attributed it to an anonymous member of the Reddit forum called “r/wallstreetbets.”
The forum sports over 3 million members and focuses on retail investment, meaning investment by individuals, typically of small sums, into stocks and bonds.
Members of the forum noticed that Melvin Capital Management, a hedge fund worth reportedly over $12 billion, was holding a massive short position in GameStop—the company was betting more than $55 million on GameStop’s stock sinking, according to startup investor Shaan Puri. Members of the forum rallied their ranks to bet against Melvin by buying GameStop shares.
…
Read more at: https://www.theepochtimes.com/organized-small-investors-plan-to-crush-hedge-funds-by-buying-gamestop-stock_3674686.html
To me, this illustrates just how totally worthless the securities markets have become, indeed how totally worthless our Casino Economy as a whole has become. The only value in stocks, once registered, issued, and publicly offered, is as chips on a roulette wheel. In turn, the instability of the real estate markets results entirely from treating real estate like stock: the most important value results from sale, not beneficial use or occupancy. Does anyone remember the concept of “stock ownership” as a means of corporate governance and initial financing? Even SEC Registration statements (for initial public offerings) or SEC quarterly or annual reports on stock relate more to the “investment” value of buying the stock as a gamble than of buying the stock as an instrument of corporate management or direction of business.
The first interesting “derivative” aspect coming from SEC regulation of stocks and the trading of “Real Estate Backed Securities” is that they are just another form of currency, entirely devoid of any practical utility in the “real world” (by which I mean, “Outside of the Casino called Wall Street.”
The second interesting “derivative” is that “Capitalism” has ceased to focus on the ownership and management of “the means of production” and now “aleatory money management” is the only thing people discuss day-to-day, as here.
This GameStop Gambit is worthless and meaningless, whereas GameStop was once a valuable and innovative product, an early leader in video game technology.
Thus PRODUCTION of everything but MONEY is all-but-forgotten. The curious third “derivative” of this trend is that Capitalism and Communism (ownership in common) have all but totally merged.
Management of every company and corporation is hidden away from stock ownership and the rights of genuine creditors.
“WALL STREET IS NOW AN INSTRUMENT OF MARXISM.”
(And yet some people wonder why the Corporate Establishment Supports Biden, Kamala, and AOC?)
According to Reuters (Jan. 28, 2021): An army of India’s small investors are now snapping up shares in $GME #GameStop, making it the most traded stock on some Indian brokerages after anonymous social media posts fueled a frenzied rally.
Looks like Robinhood has now removed $GME (GameStop), $AMC,$BB, and $NOK from their trading platform. Apparently Robinhood has placed the following notice on some of their pages, “You can close out your position on this stock, but you can not purchase additional shares.”
It looks like about 40% of Robinhood’s income comes from Citadel (the people who invested 2.6 billion dollars in the Melvin capital the largest holder of shorts on GameStop).
No conflict of interest there?? I think Citadel is one of only three New York stock exchange market makers. These companies appear to self-regulate the exchange and can turn it off and on as they see fit.
Was Citadel called by the Whitehouse to stop trading on Robinhood?
It appears that a source on Capitol Hill says that House Financial Services is getting flooded with calls about GameStop and Robinhood from reddit users who tracked down the relevant committee.
The Financial Times is now labeling members of the wallstreetbets subreddit as “alt-right supporters.” What the…
Yesterday the group-chat platform Discord banned the Wallstreetbets server for allegedly repeatedly violating its policies against hate speech.
What the..
Looks like stock market trading apps Webull and Public have now removed restrictions GameStop ($GME), $AMC and other “memestocks”
Webull and Public remove restrictions on “memestocks” after citing trade settlement firm as the cause
TechCrunch
by Darrell Etherington
Jan. 28, 2021
Excerpt:
…
Public confirmed via Twitter that users can now buy and sell GME and AMC and KOSS on the platform, thanks to the resolution of the Apex blocker. Meanwhile Webull noted that all three stocks are now also available for exchange via their app. Other platforms like SoFi so far haven’t restricted the stocks
…
Read more at: https://www.msn.com/en-us/news/technology/webull-and-public-remove-restrictions-on-memestocks-after-citing-trade-settlement-firm-as-the-cause/ar-BB1dbBkB
Robinhood stock trading platform is not only blocking legit trades they are also illegally selling their users’/clients’ GameStop ($GME) holdings against their users’/clients’ will.