GameStop short squeeze
In January 2021, a fast and large increase of GameStop stock and other assets took place on many stock exchanges. It caused major damage to hedge funds. The stock price of GameStop went up by almost 200 times from its record low, hitting a high of nearly $500 per share on January 28, 2021.[1]
This was caused by users of the forum r/wallstreetbets on Reddit through commission-free trading apps such as Robinhood.[2]
On January 28, Robinhood stopped the buying of GameStop and other securities. This caused many criticisms and accusations of market manipulation from politicians and businesspeople.[3][4] People who criticized Robinhood were Senator Ted Cruz, Representative Alexandria Ocasio-Cortez, and Tesla CEO Elon Musk.
Lawsuits were also filed against Robinhood in the U.S. District Courts for the Southern District of New York and the Northern District of Illinois.[3]
References
change- ↑ Ines Ferré. "GameStop shares soar 50% as massive short squeeze forges ahead". Yahoo! Sports. Archived from the original on 25 January 2021. Retrieved 25 January 2021.
- ↑ Smith, Connor. "Short Squeeze Sends GameStop Shares to 2007 Levels. What Happens Next". Barrons. Archived from the original on 24 January 2021. Retrieved 25 January 2021.
- ↑ 3.0 3.1 "A Fight Over GameStop's Soaring Stock Turns Ugly". Wired. Archived from the original on 24 January 2021. Retrieved 25 January 2021.
- ↑ Li, Yun (25 January 2021). "GameStop jumps another 70% to above $110, trading briefly halted in another wild day". CNBC. Archived from the original on 25 January 2021. Retrieved 25 January 2021.
