Two of the major hedge funds targeted by investors on Reddit pushing up the stock price of GameStop have waved expensive flags of defeat and sold out of their investments, losing millions of dollars.
On Wednesday, the stock price of GameStop (GME), the mall retailer for video games, soared 134%, a staggering increase of 748% in just one week after Reddit investors launched a chaotic short squeeze attack to increase the price and screw over major investors.
Wall Street hedge funds, including Citron Research and Melvin Capital, had shorted the stock, meaning they bet against it and needed it to drop in price in order for their investments to be successful.
https://www.buzzfeednews.com/article...-street-losses
After the flurry of activity on Wednesday, TD Ameritrade, one of the free brokerage apps commonly used by young investors, briefly restricted trades on some stocks, including GameStop and AMC (another target of the WSB crowd) “in the interest of mitigating risk for our company and clients." That frustrated many who saw the halt as Wall Street firms stopping investors from making trades that would improve their personal wealth.
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Crappy how the hedge fund guys were able to get TD and robinhood to pause activity so the could regroup ... at the expense of people like me and you being able to make money off it.
if pride didnt get in my way, id make my little brother my financial advisor. the language he uses sounds like Japanese to me.