01-31-2021, 04:23 PM
GameStop, Reddit and Robinhood: A full recap of the historic retail trading mania on Wall Street
- Shares of GameStop skyrocketed 400% in the past week, closing out January with a whopping 1,625% gain.
- A band of amateur traders on WallStreetBets aimed to bid up heavily shorted stocks “to the moon,” creating massive short squeezes.
- Members in the Reddit forum have tripled to 6.5 million in just a week.
- The mania backfired on free-trading pioneer Robinhood, which had to throttle back trading in the short-squeeze names and raise new funds to meet rising deposit requirements with its clearinghouse.