Wednesday, February 28, 2024

A fight over GameStop’s soaring stocks gets ugly

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Left set up a second Citron Research Twitter handle on Friday, claiming that several people attempted to hack the main account, potentially in an attempt to disrupt its live broadcast. In a note tweeted from that backup account, Left wrote that “an angry mob that owns this stock has spent the last 48 hours committing multiple crimes”, alleging that the same group was also harassing “underage children.” . he said in his YouTube video, someone ordered pizza from home and signed it up on Tinder.

Wall Street Bets moderator Bawse1 says he doesn’t know if these things have happened, “and if they have happened, it’s not something we endorse or promote.” At least of them posts on the subreddit refer to an alleged doxxing. WIRED did not confirm if the doxxing occurred or if it was through the Wall Street Bets channels. The left did not respond to WIREDrequest for comment from. Twitter said WIRED he locked his account as a precaution.

Tensions between retail investors like Wall Street Bets and a traditional short seller like Citron Research threatened to boil over for some time, in part because of a fundamental philosophical difference. “The traditional Wall Street view is that markets are driven by some connection to fundamental value,” Hoffstein said. “What we are seeing is an influx of speculative traders who have no valuation philosophy.” He quotes a sentence from Bloombergof Tracy Alloway: “Feed before the pros.” The market will be driven by capital flow rather than fundamentals – not a new dilemma given the dot-com bubble of 1999. (Then, too, day traders often crammed into a rising stock, assuming that ‘it would always increase.)

“I think the subroutine brings a new factor in actions that wasn’t as prevalent as it used to be,” says Bawse1. “This is called the hype.”

Meanwhile, “BUY” calls alongside emoji rockets flooded the Wall Street Bets Discord on Friday, where more than 25,000 spectators watched the chat fill with diamonds, rocket emojis and obscenity. GameStop’s stock had just hit $ 60, a big jump from the $ 20 it was worth last week. As of Friday, millions of shares were traded, more than 12 times its average trading volume. In the Discord voice channel, where hundreds of people took part in the “gme-rocket,” shouts, buzzes and intermittent announcements merged into an almost Gregorian chant. The stock continued to increase. It peaked at $ 73.09 at noon today before dropping quickly to around $ 58. Discord members encouraged each other to “HOLD”. Bawse1 says it’s the first time in years on Wall Street Bets that “everyone was making money”.

Wall Street Bets treats trading stocks like a video game, says Jaime Rogozinski, who founded the subreddit but has not been affiliated with it since last year. Buttons. Graphics. Risk and reward. Hell, a discord. According to Bawse1, much of the trading takes place on the Robinhood app, which ad: “Level up with options trading. . . Choose your own business. Now that the barrier to trading options is lower than ever, leveraging the stock market can be as easy as having a few hundred thousand friends and an app.

“It certainly started out as a meme. This is how Wall Street Bets works, ”says Rogozinski. “[Wall Street Bets] get a stock they have fun with, they make funny pictures and videos and songs or whatever. GameStop started off as a meme but they’ve taken it to a different level. They no longer comment on the story. They want to become history and have done it very effectively.

GameStop’s stock closed at $ 65.01, up 51% since the close on Thursday. On the Wall Street Bets subreddit, one of the most popular posts declares, “GME !!!” with rocket, moon, diamond and prayer hands emojis. A screenshot of their Robinhood account showed they had $ 100,245.06 in the market; they were up 69.69% on the day. Read a comment: “THIS IS PROOF OF OUR STRATEGY. BUY SHARES. BLEED SHORTS. FUCK THE INSTITUTIONS. STAY ON THE LINE.”

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