Let me see if I understand this.
A mob of Reddit users from a sub-Reddit known for alt-right membership, Trumpism, video games, and… investment strategies, decided to make Short Sellers hurt by INCREASING the value of their held stocks through small dollar investments made en masse via social media. Gamestop is the video games retailer with online job postings like these. Parents — you might want to read those job postings.
The result of this rush of small $ investments is the fund holding Gamestop (and others) stock is becoming unstable and may collapse because they were betting on the stocks *going down*, not up. When a hedge fund collapses, they lose the portfolio that was within that fund and another larger investor can gobble up the remains on the cheap, good and bad. Any small $ investors who bought stock during the rush would need to sell quickly or risk losing what they spent. Many have willingly lost money as they believe they are “owning the bad guys on Wall St.”
The end result? GME (Gamestop) stock prices will fall back down to where they were because the money wasn’t reinvested in Gamestop and they aren’t profitable, but the $13 billion dollar hedge fund that held the majority of their stock will probably go bankrupt and close due to short-term payouts to Reddit investors. Now, a large firm (right now investors are saying BlackRock) can come along and buy up the remains of that portfolio, and millions of small $ investors are out their principal investments and any transaction fees paid.
On top of the above, the media are beginning to report on connections between Steve Bannon, Roger Stone, and a handful of others, who are associated with these activities (using memes and social media power to achieve political and private goals) and are currently on social media *cheering on* what is happening as a “populist uprising.”
Something stinks with the “populist uprising” that invests, believes it is the same as the Occupy Wall St movement, and has nebulous connections to right-wing capitalist grifters. Stop and think, friends.
The best thing to come out of this is of course education. Many people now see how corrupt and easily exploited the stock market can be, as well as how un-free free-market capitalism can become when you try to game it as it games you.
yourcreepyuncle 