GameStop’s rocketship saw new heights as it blasted past the $80 USD mark to settle at $150, even trading over $200 USD after hours.
With the unprecedented surge propelled by WallStreetBets and YOLO traders, many traditional investment firms that shorted on GME were caught off guard. One of those institutions, Melvin Capital Management, lost big and required a $2.75 billion USD cash infusion from hedge fund companies Citadel and Point72.
This sort of “David versus Goliath” story has been met with mixed feelings, while the larger players have been losing millions from the short squeeze, a lot of clandestine traders have been profiting from the chaos — even seeing one trader turn his $55,000 USD position to $22 million USD. A lot of casual traders are also using this opportunity to not only ride the wave but to also stick it to Wall Street for past bailouts and corruption — making good/bad use of their stimulus cheques. The spotlight was also recently intensified after Elon Musk retweeted WallStreetBets’ Reddit page with the caption “GAMESTRONK!”
— Elon Musk (@elonmusk) January 26, 2021
You’ve followed Wall Street the last 40 years correct? You want to play the moral high ground card and @ the SEC on some “book em Danno” vibes? Families for decades have been bled dry to be left with nothing. You’ll find no empathy for oligarchs. Yikes.
— Cosmic Giggle (@TheD3vineOne) January 27, 2021
How to become a millionaire in two easy steps:
There’s this high tech firm called GameStop pic.twitter.com/bGKtVXpVnn
— Adam ? (@adamcsv) January 27, 2021
This content was originally published here.