Drawing the attention of financial regulators, legislators and the White House on possible market manipulation, GameStop’s shares fell an impressive 81 percent a few days after reaching a record high of $ 483. As momentum spurred by traders on r / WallStreetBets slows down, the company’s stock is now below $ 100.
The sharp drop reveals that the major hedge funds that faced a tightening closed their short positions after the rise of Reddit and many investors who tried to make money from the recent hike suffered big losses. Other stocks that recently rose also plummeted, with AMC Entertainment moving from $ 20 USD per share to just $ 6.50 USD and Blackberry going to $ 11 USD from $ 28 USD.
Mike Mullaney, Director of Global Markets Research at Boston Partners, said: “This was bound to happen – it goes back to the age-old premise that the stock market is ultimately driven by greed and fear … I feel bad by anyone who skipped this deal last week, especially on the buy side. ”
If you’ve lost, the price of silver peaks in eight years, but r / WallStreetBets says it’s not behind the rise.