What Makes INFPs Explode

Gamestop & AMC: Reddit mob lets share prices explode - to the detriment of shortsellers

“As if 4chan had found a Bloomberg Terminal”: This is the self-description of the notorious reddit forum r / wallstreetbets, which is now venting its unrestrained energy on the stock markets. With their meme-riddled social media campaigns, users of the forum have managed to cause the stock exchange prices of companies badly hit by the Corona crisis to suddenly explode again - and cost those investors millions who actually fell short with short selling The prices of those struggling companies were betting.

An attack by the Internet mob on Wall Street - this is how you could also describe the actions that you can currently see on the stock exchanges. It started with the shares of the video game retailer Gamestop (GME), which suffered again from the Corona crisis. The wallstreetbets supporters, who incited them to buy GME shares via channels like Dischord, Twitch or Twitter with brisk memes, achieved that the paper rose by more than 100 percent within a day.

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After GME comes AMC

Target number two is now the share of AMC Entertainment - the globally operating operator of cinemas has also suffered, unsurprisingly, badly as a result of the corona crisis and the lockdowns associated with it. Now the fallen share price rushes to the aid of the wallstreetbets pack - and AMC suddenly increases by more than 170 percent within one day. In the forum it was announced that AMC would be sent “to the moon” - a popular battle cry. The price fluctuations were so strong that trading in the shares on Wal Street was suspended several times at the beginning of the week (this happens when a stock loses or gains more than 10 percent of its value within five minutes).


The reddit trolls didn't just choose these two companies. Their aim is to influence the share price of GME and AMC in such a way that investors who bet on their crash by short selling suffer severe damage. The wallstreetbets mob is currently flexing its muscles and wants to punish hedge funds and professional investors for betting against the ailing companies. The sudden price increases meant that they had to liquidate their short positions early.

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The wallstreetbets disciples were particularly interested in the shortseller Melvin Capital - this is shown by a meme on which the troublemaker's mascot urinates on the logo of the financial investor. According to the Wall Street Journal, Melvin Capital has already lost more than 15 percent of its capital to losing bets. Meanwhile, Elon Musk, one of the richest people in the world, has jumped on the trend. With a tweet on Tuesday evening and a link to the reddit forum, he gave the run on the Gamestop share an additional push:

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Of course, Musk himself has a history with shortsellers. These were his dear problems for Tesla stock, which is now higher than ever before. Because TSLA has always been a popular target for shortsellers to bet on their imminent crash. But it should also be noted that shortsellers can also be right - after all, they warned against the shares of Nikola and Wirecard.

To buy the stocks, the trading apps Robinhood or Trading 212 are popular with younger users. These had to report failures on Wednesday afternoon due to the rush of visitors. With their help, shares can be purchased in seconds and with just a few swipes on the display. Some redditors are apparently less driven by the intention to make a profit than by revenge. "We need to take the wealth back from these boomers," writes one in the forum. Unsurprisingly, interventions by the US Securities and Exchange Commission are now also loud. However, it is questionable how one could proceed against it. It is difficult to sue pseudonyms that talk about buying stocks online.

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