This Week in Startups Emergency Pod! WallStreetBets vs. Suits, breaking down the GameStop fiasco & more | E1167
Jan 28, 2021
Dive into the GameStop saga where retail investors turbocharged a stock and shook Wall Street to its core. Discover how the WallStreetBets community challenged traditional investing norms while exposing risky hedge fund practices. The surge in financial literacy among younger traders is explored, along with the ethical dilemmas of trading influencers. As social media reshapes investment behavior, the dynamic clash between retail investors and institutional giants raises questions about fairness and accountability in finance.
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GameStop Surge
- Jason Calacanis recounts GameStop's stock surge from $3 to nearly $400.
- Notable figures like Chamath Palihapitiya and Elon Musk fueled the buzz around the stock.
Short Squeeze Tactic
- WallStreetBets retail investors targeted hedge funds with short positions in GameStop.
- Their collective buying power created a short squeeze, forcing hedge funds to cover their positions at a loss.
GameStop's Rise
- GameStop's stock surged to unprecedented levels, becoming the most traded stock, surpassing even Tesla and Apple.
- This surge prompted short-seller Andrew Left to publicly admit defeat and exit his short position.