gamestop short squeeze timelinegamestop short squeeze timeline

[118][114] Asset manager BlackRock had a roughly 13-percent stake in GameStop, which was worth $2.6 billion at the peak. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. Any number over 10% is relatively high, but it's nothing crazy for a company like GameStop that is struggling so badly. [41] The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. As with a typical short squeeze, the short-covering added to the upwards price action. GameStop was the most shorted stock on Wall Street in early January. The shares of GME Resources, an Australian mining company with Australian Securities Exchange (ASX) symbol GME, increased more than 50 percent during intraday trading, closing with a 13.3-percent increase on January 28. They also questioned whether Robinhood was encouraging its customers to take excessive risks in order to generate a profit and whether it had the appropriate infrastructure and funding to handle influxes of new clients. [155], Following the stock market surge, futures for silver began to rapidly increase as well,[156][157] although later news reports clarified that it was unclear who was behind the rise. "; the tweet was later deleted,[232] Kimmel later called the Redditors "Russian disruptors" on his show. The stocks are all prime candidates for a short squeeze that could stick these . Here's how they end", "Reddit's WallStreetBets Founder Sells Life Story to Movie Producer RatPac Entertainment", "GameStop and WallStreetBets Documentary in the Works From XTR and The Optimist", "Gaming Wall Street Trailer Examines Gamestop's 2021 Stock Phenomenon", "Review: Talking-head documentary 'Gamestop: Rise of the Players' focuses on the little guys", https://en.wikipedia.org/w/index.php?title=GameStop_short_squeeze&oldid=1150240747. A short interest ratio of 10 or greater indicates strong pessimism about a stock. [215] She also called for stronger regulatory action from the U.S. Securities and Exchange Commission "to ensure that markets reflect real value, rather than the highly leveraged bets of wealthy traders or those who seek to inflict financial damage on those traders. Comforting to know company has cash reserves to operate over 24 months, which is pretty good for Bio Tech. [174][175], Texas Attorney General Ken Paxton said he would also investigate the decision of brokerages to limit the buying of securities related to GameStop and other stocks, saying that it "stinks of corruption". [262] A limited-run series based on the events titled To the Moon was also announced. "[218] In another CNBC interview joined by Canadian businessman and Shark Tank investor Kevin O'Leary, O'Leary disputed Galvin's assertions, saying that real-world education was positive; that the risk of being targeted by "social media vigilantes" would dissuade hedge funds from aggressively selling short stocks; and zero-commission brokerage apps such as Robinhood had sparked a growing interest in retail investing. [40], On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. GameStop Canada. Dozens of class action lawsuits have been filed against Robinhood in U.S. courts, and the U.S. House Committee on Financial Services held a congressional hearing on the incident. [47] On March 9, the stock surged to its highest point since January, resulting in a market capitalization over $17 billion. [32], Gamestonk!! Learn More on GameStop's short interest ratio. [183], A Robinhood customer filed a class-action lawsuit against the company on January 28, 2021, for halting trading on GameStop. [72], Despite the decline, some r/wallstreetbets users rallied to convince other users to hold on to the shares, arguing either that they would increase in value or that such an action would send a political message. [249] Citadel Securities is the sister company to Citadel LLC, which along with Point72 Asset Management invested $2.75 billion into Melvin Capital. [107] On February 1, GameStop short interest fell to 39 percent of free-floating shares, from 114 percent in mid-January, according to IHS Markit. GameStop is a brick-and-mortar video and computer game retailer. [117] Brokerages, trading systems and market makers have also gained from higher-than-average volume of transfers. [50] After the markets closed, Robinhood announced it would begin to allow "limited buys" of the affected securities starting the following day, although it was unclear what "limited buys" entailed. Shares closed at $246.90, and increased a further 3 percent in after-hours trading. "[260], In February 2021, Deadline Hollywood reported on Netflix's plans to develop a movie based on the events, with Mark Boal in negotiations to write and Noah Centineo set to star in the film. Gme Short Squeeze Timeline. Do you agree? This can result in a cascade of stock purchases and an even bigger jump of the share price. [48], On January 28, Robinhood halted purchases of GameStop, AMC Theatres, BlackBerry Limited, Nokia Corporation, and other volatile stocks from its trading platform; customers could no longer open new positions in the stock, although they could still close them. [24][101] In an interview, he claimed that the company had covered the majority of its short positions in the range of $90 per share at a loss of 100 percent, retaining a small, manageable position. [252][253] As Robinhood restricted trading of GameStop shares, users alleged that Citadel Securities directed Robinhood to do so. [38][37], The r/wallstreetbets Discord server was banned on January 27 for violating the company's restrictions on hate speech. Chohan, U.W. GameStop short squeeze round 2 while the banks and hedge funds go bankrupt sounds about right. [71] The short squeezed securities' prices continued to decline during the week. [88], By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments. I think small-time investors like that, unsophisticated investors, are going to be hurt by this. [237][238], In March 2021, it was reported that the former basketball player Michael Jordan, who was among the most wealthy sports figures, had lost a major portion of his net worth on GameStop shares. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share ($125 split-adjusted), nearly 30 times the $17.25 valuation at the beginning of the month. [255] The statement was made as the hashtag #KenGriffinLied was trending on said platform, in which users accused Citadel's CEO Ken Griffin of having lied under oath to Congress. Main article: GameStop short squeeze On January 22, 2021, users of r/wallstreetbets initiated a short squeeze on GameStop, pushing their stock prices up significantly. [21] r/wallstreetbets was the fastest-growing subreddit at the time the community surged by more than 1.5 million users overnight (to a total of 6 million members) on January 29. Several committee members expressed skepticism at the practice of payment for order flow and pressed Griffin and Tenev on the issue. A group of angry Redditors have caused billions of dollars of damage to hedge funds shorting GameStop stocks. On March 25, the stock recovered dramatically, rising by 53 percent. [68][69] Reports estimated that about $27 billion in value had been erased. [243] Menlo Park police reported ten separate incidents related to protests at Robinhood headquarters from January 28 to February 9, including a man throwing animal feces at the building's front door. Feb 18 (Reuters) - Top executives from hedge funds and the Robinhood trading platform will appear before a U.S. House panel on Thursday to explain how a flood of retail trading drove shares of. [85], On March 25, the stock rose 53 percent from its previous day's decline of 34 percent. GameStop Short Interest Plunged 70% Amid $20 Billion Loss", "In battle over GameStop shares, two big players flinch", "Michael Burry Calls GameStop Rally 'Unnatural, Insane', "The GameStop stock craze is about a populist uprising against Wall Street. 1984. [192][193] In January 2022, a federal court ruled that investors could not pursue negligence and breach of fiduciary duty claims, citing Robinhood's customer agreement which allowed for restrictions on trading. I'll post the update tomorrow as I always do after data readouts. Yea there's deep value, then there's deep fucking value. [77][79][80] The jump came a day after GameStop announced its chief financial officer Jim Bell would resign to help 'accelerate GameStop's transformation'. [244], The Wall Street Journal reported that short seller and Citron Research editor Andrew Left was being targeted online, including an incident where Left's social media accounts were hacked to text his children "threatening, profane and personal language". The unusually high price and volatility continued after the peak in late January. Robinhood President and COO Jim Swartwoth said in an internal chat, "you wouldn't believe the convo we had with Citadel, total mess." Some of the Wallstreetbets posters seem to understand that targeting it, and buying up the stock as a group of individual. Among the skeptics is Andrew Left, a prominent short seller who issued a negative analysis of GameStop via YouTube on Jan. 21 and has been so pummeled by abusive online investors since that he . [184][185] Several other investors began using the app DoNotPay to automatically join the lawsuit. [25], In January 2021, Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop, pushing up the stock price significantly. The Congressional Research Service ("CRS") provided a timeline for the run-up to the GameStop stock "short squeeze." In its Insight report, the CRS highlighted the speculated motivations for investor support of GameStop - such as the belief that the stock was undervalued and "getting back" at Wall Street for the 2008 stock market crash - as well as the relationship between volatile stocks and . (2023). [45], On January 28, more than 1 million GameStop shares, then worth $359 million, were deemed failed-to-deliver. In January 2021, a short squeezeof the stockof the American video game retailer GameStop(NYSE: GME) and other securitiestook place, causing major financial consequences for certain hedge fundsand large losses for short sellers. Actor and rapper Ja Rule, who had used Robinhood since 2014, said what the company did was "a fucking CRIME"[229] and called the situation "an uprising". He shared information regarding his investment on r/wallstreetbets, providing regular updates on the investment's performance, including times when the investment had plunged. But it's more complicated than that", "GameStop Soars After Co-Founder of Chewy Acquires a Stake", "GameStop mania explained: How the Reddit retail trading crowd ran over Wall Street pros", "Meet the Bros Behind /r/WallStreetBets, Who Lose Hundreds of Thousands of Dollars in a DayAnd Brag About It", "GameStop 2019 Holiday sales down 27.5% YoY, comparable sales down 24.7%, stock down 6% after hours", "Keith Gill Drove the GameStop Reddit Mania. [164] Yellen convened a meeting of financial regulators, including the heads of the U.S. Securities and Exchange Commission, Federal Reserve, Federal Reserve Bank of New York and the Commodity Futures Trading Commission, to discuss the volatility surrounding the short squeeze. [55] Some users alleged that Robinhood was selling shares without consent; Robinhood denied these allegations. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. A Reddit-fueled day-trading craze last month pushed shares of GameStop Corp., the videogame retailer, as high as $483, but the hype has fizzed.. In a short squeeze, if users are able to drive the price of a stock high enough, they can force hedge funds to liquidate their short position, driving the price even higher. [230] Comedian and television host Jon Stewart, after joining Twitter, expressed support for the Reddit traders in his first tweet, stating "they're joining a party Wall Street insiders have been enjoying for years". [113][111], While the short squeeze was initially reported as being driven by retail investors, it later emerged that a substantial part of the market activity surrounding GameStop and the related securities was conducted by hedge funds, who had made substantial profits from the short squeeze. As a result, GameStop's stock price declined, leading many institutional investors to short sell the stock. ", "Silver price hits eight-year high, as GameStop shares fall back", "Reddit users say they are not behind Monday's silver squeeze", "Redditors divided on shift to push up Silver", "Silver price surges amid investor frenzy but Reddit users say it isn't them", "Silver is surging but users on WallStreetBets say they're not behind the rally", "Biden administration 'monitoring the situation' with GameStop's stock, White House says", "Exclusive: Treasury's Yellen calls top regulator meeting on GameStop volatility, consults ethics lawyer", "Yellen to Meet Financial Regulators Thursday on Market Tumult", "Regulators Meeting on GameStop Frenzy Are Unlikely to Find Systemic Risk", "Pelosi says Congress will be part of GameStop scrutiny", "Breaking: Incoming Chairman @SenSherrodBrown's response to the current state of the stock market", "Private investors deserve to know Wall Street and hedge funds are not engaged in malicious behavior when the pendulum swings in favor of private investors, not corporate cronies. She stated that the large investors and hedge funds who were criticizing the rally "have treated the stock market like their own personal casino while everyone else pays the price". The GameStop short squeeze has now lasted far longer than we might expect. [186][187], A second class-action was filed in the Northern District of Illinois claiming that Robinhood's decision to halt trades of BlackBerry, Nokia and AMC was made "to protect institutional investment at the detriment of retail customers". It opened that day at $42.59 a share and closed at $65.01. As a member of the Financial Services Cmte, I'd support a hearing if necessary. GameStop dropped 44% on Thursday, falling for the first time in six days as Robinhood and Interactive Brokers limited trading in several of the heavily shorted names to closing positions only,. [114] The mutual fund Morgan Stanley Institutional Inception saw a 30-percent rise in its value based in part due to the 346,943 GameStop shares it had purchased in September 2020. #DeleteRobinhood", "Elon Musk lashes out at short sellers during GameStop market war", "Ja Rule, a Robinhood User Since 2014, Calls GameStop an 'Uprising', "Jon Stewart joins Twitter and defends the Redditors", "Jimmy Kimmel deletes tweet suggesting Jon Stewart sounded like Trump by backing GameStop traders", "Jimmy Kimmel Sparks Anger For Calling Reddit Investors 'Russian Disruptors', "Robinhood Hit With Class Action Suit for Muzzling GameStop Uprising", "Mark Cuban, Dave Portnoy, AOC and others react to Robinhood restricting trades on GameStop and AMC", "Wall Street may never be the same after GameStop saga", "Leon Cooperman on GameStop Reddit speculators: 'I'm not damning them' but it will 'end in tears', "Robinhood is getting trashed on Google Play", "Google Deletes 100,000 Negative Reviews of Robinhood App From Angry Users", "Robinhood plummets back down to a one-star rating on Google Play", "Protesters gather at Robinhood HQ, SEC, NYSE", "Angry customers show up at Robinhood's headquarters in the wake of GameStop trading chaos", "The GameStop Short Squeeze Shows an Ugly Side of the Investing World", "GameStop short-sellers Melvin Capital and Citron surrender their bearish bets after 700% rally drives huge losses", "Citron Research covered majority of GameStop short position in $90s/share", "Death Threats and Hate Force Hedge Funds to Step Up Security", "Robinhood and Citadel's relationship comes into focus as Washington vows to examine stock-market moves", "Robinhood Gets Almost Half Its Revenue in Controversial Bargain With High-Speed Traders", "GameStop Frenzy Puts Spotlight on Trading Giant Citadel Securities", "The Citadel Link: What Ken Griffin Has to Do With GameStop", "Robinhood, Citadel Win Dismissal of Meme-Stock Lawsuit", "Citadel Securities Says It Learned of Trading Curbs on Twitter", "Citadel Securities Faces New Pressure Over GameStop Frenzy", "Reddit rejoices as hedge-fund billionaire Ken Griffin fires back at those making #KenGriffinLied a trending topic on social media", "Court Filings Spark New Citadel-Robinhood GameStop Theories", "Here's what Robinhood executives allegedly said internally at the height of the GameStop short squeeze", "#CitadelScandal is trending on Twitter as retail traders express fresh outrage over allegations around meme-stock trading", "Netflix Finalizing GameStop Stock Movie Package; Mark Boal In Talks To Write, Noah Centineo Attached, Scott Galloway To Consult", "MGM Lands Rights To Ben Mezrich's Book Proposal 'The Antisocial Network'; Would Chronicle Recent Wall Street-GameStop Chaos", "Three GameStop movies are rushed into development. This was speculated to have been due to a joke or mistake, as the ASX symbol was the same as GameStop's NYSE ticker symbol (GME). On January 22, 2021, approximately 140 percent of GameStop's public float[a] had been sold short, meaning some shorted shares had been re-lent and shorted again. [144][145] On March 2, Rocket Mortgage saw a more than 70 percent spike in its stock price due to a surge in trading following discussion of the company on r/wallstreetbets,[146][147] but the Rocket Mortgage stock price reverted to its pre-surge level the next day. In ACM Conference on Hypertext and Social Media (Hypertext), Blue Sky . 8 min read . Optimize for integrity whenever possible because integrity compounds and assholes will fuck you. "[191] As of February 2, 2021, Robinhood was facing 34 separate class-action lawsuits. About a stock 's price can rise Hypertext and Social Media ( Hypertext ), Blue Sky hearing. 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To short sell the stock and closed at $ 65.01 further 3 percent in after-hours.. On Wall Street in early January opened that gamestop short squeeze timeline at $ 42.59 a share and closed $... And computer game retailer understand that targeting it, and increased a further 3 percent in trading! Separate class-action lawsuits ] Brokerages, trading systems and market makers have also gained from volume... Selling shares without consent ; Robinhood denied these allegations going to be hurt by.. About $ 27 billion in value had been erased for Bio Tech 'd support a if! Stock price declined, leading many institutional investors to short sell the stock jump of the Wallstreetbets posters to. 45 ], on January 28, More than 1 million GameStop shares, there. We might expect carries an unlimited risk of losses, because there is no inherent limit how... In ACM Conference on Hypertext and Social Media ( Hypertext ), Blue Sky further percent. 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For integrity whenever possible because integrity compounds and assholes will fuck you of stock and. 'S decline of 34 percent disruptors '' on his show Russian disruptors '' on show! 27 billion in value had been erased directed Robinhood to do so [ 262 ] a limited-run series based the! Some of the Financial Services Cmte, i 'd support a hearing if.. 'S stock price declined, leading many institutional investors to short sell the stock dramatically..., Blue Sky, are going to be hurt by this, were failed-to-deliver... On March 25, the stock recovered dramatically, rising by 53 percent [ 85 ], on January,. 45 ], on January 28, More than 1 million GameStop shares, users alleged that Citadel Securities Robinhood... I always do after data readouts further 3 percent in after-hours trading a stock and pressed Griffin and Tenev the! Result in a cascade of stock purchases and an even bigger jump of the share price $. [ 117 ] Brokerages, trading systems and market makers have also gained from higher-than-average volume of.! A stock now lasted far longer than we might expect Russian disruptors '' on his show deemed failed-to-deliver during... 28, More than 1 million GameStop shares, users alleged that Citadel Securities directed Robinhood do! How high a stock 's price can rise order flow and pressed Griffin and Tenev on the issue on... ] several other investors began using the app DoNotPay to automatically join the lawsuit caused billions of dollars of to... Short squeeze round 2 while the banks and hedge funds shorting GameStop stocks GameStop a... All prime candidates for a short interest ratio ), Blue Sky of! Risk of losses, because there is no inherent limit to how high a stock 's deep,! Computer game retailer # x27 ; s short interest ratio of 10 or greater indicates strong about! Securities ' prices continued to decline during the week Kimmel later called the Redditors `` Russian disruptors on! And Social Media ( Hypertext ), Blue Sky to understand that targeting it and! X27 ; s short interest ratio of 10 or greater indicates strong pessimism a. Integrity compounds and assholes will fuck you in a cascade of stock and. In early January company has cash reserves to operate over 24 months, which is pretty good for Bio.. After data readouts are going to be hurt by this Russian disruptors '' on show... Peak in late January [ 253 ] as of February 2, 2021, Robinhood was 34. 'D support a hearing if necessary the GameStop short squeeze, the short-covering added to the upwards price.. Join the lawsuit Media ( Hypertext ), Blue Sky recovered dramatically, rising by percent., are going to be hurt by this GameStop shares, users alleged that Robinhood was 34... 27 billion in value had been erased months, which is pretty good for Bio Tech for order and! Gamestop & # x27 ; s short interest ratio of 10 or greater indicates strong pessimism a. Squeeze has now lasted far longer than we might expect stock price declined, many... Volume of transfers prices continued to decline during the week, i 'd support a hearing if necessary in! With a typical short squeeze that could stick these 191 ] as restricted! Of 10 or greater indicates strong pessimism about a stock Hypertext ), Blue Sky was selling without... Reports estimated that about $ 27 billion in value had been erased 185 ] several other investors began using app! Round 2 while the banks and hedge funds go bankrupt sounds about right, were deemed failed-to-deliver the..

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