WallStreetBets

Lately, there has been very less to write about. But I was intrigued by what happened at the WallStreet. The working class heroes took it up to a whole new level, totally unprecedented. 

Here's the long story short:

THE GME (Game stock) are retailers of video games. They sell their games physically, not online. This model had become increasingly loss-incurring even before the Covid induced lock down as people started going to online markets. The figures are quite remarkable- they lost about $275mn on around $5Bn revenues. This would mean for a lot of institutional investors out there-a huge shorting opportunity.

And they redeemed it. The short positions came flying in.

However, Ryan Cohen, founder of Chewy Inc, began bringing the public attention to this stock by taking a 13% stake in the company. The public started taking long positions and the Big players kept shorting. 

This is where the redditters come on stage. The Wallstreetbets  (a forum) began discussing the stock and the it became more and more popular and in demand, until the big guys started to see their grounds shaking. They kept losing money as their short positions gave them a fine opportunity for unlimited loss!

Here comes Robinhood, which by its name and vision is supposed to "Democratize retail trading". They instead, went against their own clients. The retailers were betrayed and one day, Elon Musk tweets about the issue. Class actions suits were by signed by thousands and ten thousands.

The last news I heard about Robinhood is that they shorted their own IPO.

So, kudos to the Working class heroes!!!