United States: Internet users increase the action of the video game brand GameStop and panic Wall Street

This is the saga of the beginning of the year on Wall Street. Since the start of the year, GameStop video game store action has skyrocketed at an astounding rate. The title rose, Friday, January 22, by nearly 250%, due to the massive purchases of investors who had previously bet down on the title.

GameStop is indeed one of the Wall Street companies the most targeted by “short selling”, a practice which consists, for an investor, in selling securities that he does not own at a generally high price in anticipating its fall and hoping to buy them back much cheaper at a later date.

But a group of Internet users, member of the WallStreetBets forum on the Reddit site, took it upon themselves to counter this strategy and massively bought the title of GameStop to inflate the price. GameStop rose 18% Monday, then 93% Tuesday and exploded 135% Wednesday.

Faced with this sudden increase, the financial funds which had bet on the fall on GME (name of the GameStop share) were forced to buy back the title to limit their losses, causing a “short squeeze” (or “forced liquidation). “), which upped the action even further. The members of WallStreetBets rejoiced at this feat, seen as a middle finger in the deep sea.

Occupy Wall Street protested that the little people could not participate in the stock market game. Now the little people have found a way around the system from within.

Jaime Rogozinski, creator of the WallStreetBets forum

in a statement

The gendarme of the American Stock Exchange, the SEC, also indicated Wednesday evening to have taken note of this “volatility” and “assess” the situation. On the side of the US government, White House spokeswoman Jen Psaki assured that “Our economics team, including Treasury Secretary (Janet) Yellen, are monitoring the situation.”

Reddit users then took the same step to other companies, including the chain of cinemas AMC (+ 301%) and, to a lesser extent, the manufacturer of business software BlackBerry (+ 33%). Result, lhe New York Stock Exchange, victim of great volatility, concluded Friday, January 29, its worst week in three months.

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