The “Reddit Rally” continued full steam ahead on Wednesday as officials began to question whether they were behaving in a populist market revolt or something more sinister.
Shares Gametop and AMC Entertainment posted a one-day gain of 134 percent and 301 percent, respectively – just the latest of what the Reddit Message Board described as a “war” between investors from the elite section of Valve Street There are small stocks for profit. Fall.
“I want to help with this movement, and hold the line!” A user recently wrote about his investment in video retailer Gametop.
But when asked about the dizzying heights reached by stocks like GameStop, Nasdaq chief Adena Freedman increased her chances of playing foul.
Speaking on CNBC, Freedman said that regulators need to question whether the “social media activity” behind the recent stock increase could be a market manipulation known as a pump-and-dump scheme.
TD Ameritred indicated further trouble in announcing new restrictions on the transaction of popular stocks such as Gamestop and AMC. The retailer brokerage said it added the trading threshold “in the interest of reducing risk for our company and customers”.
White House press secretary Jane Saki also said, “Secretary Yellen and others are monitoring the situation,” while Federal Reserve President Jerome Powell has a question about Gametop during his press conference after the Federal Open Market Meeting But tricked himself.
GameStop shares have risen more than 700 percent in recent weeks, bringing its market cap to about $ 1 billion to $ 24 billion on Wednesday.
The rally has been filled with anonymous posters revealing populist fury at the Wall Street machine, which has tried and failed to wager against Gametop and other stocks.
Despite the concerns, Wall Street professionals believe they have only been beaten by the public. This includes Andrew Left of Citroen Research, who predicted on January 21 that GameStop’s shares would fall to $ 20, prompting only the Reddit poster to double, resulting in reduced stock enthusiasm.
“It’s not a pump and dump if it’s a lot of people buying and buying,” Lieut told The Post on Wednesday. “These are flash mobs that do not respect the market and have traded in the lowest form of gambling.”
The leftist, who reported threats to the FBI against himself and his family, said he gave up on his unsuccessful attempt to reduce stocks. Hedge fund Melvin Capital has also closed its short position in GameStop after taking a major loss.
Other hedgers say they agree with Lieut. Thomas Thornton of Hedge Fund Telemetry said, “More power for the Wallcraftbats crowd.” “They found out how to game the system, how to beat the shorts, and they won. Congratulations to them.”
“It is not fraud, it is not market manipulation, it is not illegal,” said Francis Curren, securities litigation attorney at Kudman Trachen Aloe and Posner. “This boiler room is not cold-calling people. This is a spontaneous online revolution and other sides of these trades are very unhappy about it. “