Yesterday many big retail brokerage firms told their customers that they would no longer be able to buy GameStop Corp. stock because it was getting too crazy. This led to a lot of outrage from people who are famous and online:
The popular story here is that small-time retail investors, who stereotypically trade stock on the Robinhood app and egg each other on in the WallStreetBets Reddit forum, have been pushing up the stock of GameStop for a few weeks, and they got it to pretty dizzying heights: GameStop started the year at $18.84 per share; at one point yesterday morning it traded at $483, up almost 2,500%. They are doing this partly for fun and partly for profit but also, especially, to mess with the hedge funds on the other side of the trade, who had bet against GameStop by shorting the stock and who suffered and surrendered as it went up. We have, uh, talked about this a bit this week.