just444 (just444) wrote in ohnotheydidnt,

A Group or Redditors Just Blew Up Two Hedge Funds Over GameStop.

so i don't really understand the whole thing, but the gist:

reddit sub r/WallStreetBets noticed that hedge funds and investors were short selling the GameStop stock (= they were betting on it going down without actually owning the stock)

the subreddit banded together and brought a ton of GameStop stock and options, pushing the price from $3.25 each to $148

the hedge funds who were batting on it going down now had to buy it at the high price point

Hedge funds Citron Research lost $1.6 billion in a single day and Melvin Capital needs a $2.75 billion bailout

and a few redditors are very rich now

Elon Musk is impressed

source 2 3 4 5
Tags: computer / video games, computers and technology

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