How a Reddit Group Blew Up GameStop's Stock
A Quick Rundown of the Situation
The share price of GameStop has skyrocketed in recent weeks, doubling in value to a peak of $9 in late January 2021. This meteoric rise has been attributed to a group of Redditors who have been buying GameStop options and holding onto their shares, causing a short squeeze that has forced short sellers to cover their positions at a loss.
The Role of r/WallStreetBets
The Reddit group r/WallStreetBets has been at the center of this story. The group is known for its meme-stock mania, and its members have been actively promoting GameStop stock. This has led to a surge in demand for GameStop shares, which has pushed the price up.
Impact on the Stock Market
The GameStop stock saga has had a significant impact on the stock market. It has caused volatility in the markets and has led to a number of restrictions on trading by major brokerages. The long-term impact of this event is still unknown, but it is clear that it has shaken up the traditional stock market.
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