SEC GameStop Report Debunks Conspiracies, Backs Gensler Plan
- Agency casts doubt on short squeeze, says hedge funds endure
- Several market dynamics warrant closer scrutiny, agency says
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A highly anticipated U.S. Securities and Exchange Commission report on January’s frenzied GameStop Corp. trading debunked some conspiracy theories that have swirled around social media for months, while adding momentum to Chair Gary Gensler’s push to toughen rules.
The 44-page document -- released Monday -- details the SEC’s assessment of one of the most remarkable periods of the pandemic economy, when retail traders took on Wall Street and sent shares of GameStop and other meme stocks into the stratosphere.