Haikhuu founder Allen Tran, who moderates the Facebook group ‘Robinhood Stock Traders’, describes his group being temporarily ‘disabled’ amid the GameStop stock frenzy.
The top prosecutor in Texas said he was opening an investigation into the increase in the GameStop market on Friday, accusing Wall Street “elites” of manipulating markets and corruption.
“The US economy must be transparent, open,” Paxton tweeted on Friday afternoon. “This week’s coordinated corruption by a cabal of oligarchs shows that it is not.”
He added: “I will help fix this”.
The announcement came in the middle of a wild month for GameStop shares, which saw massive price hikes as retail investors faced Wall Street short sellers – with much of the activity taking place on the trading platform. Robinhood mobile apps.
DISCORD BANS WALLSTREETBETS AMID GAMESTOP SURGE
Discord is a text and voice communication application – one that got involved in the market controversy by banning a server dedicated to WallStreetBets, a Reddit forum whose users helped originate the GameStop viral craze.
WallStreetBets has been pitted against short sellers of hedge funds, costing financial professionals billions of dollars, while amateur investors caused GameStop’s stock to skyrocket last month.
Texas Governor Greg Abbott, l, and Attorney General Ken Paxton give a press conference to address a Texas federal court decision on the immigration process filed by 26 states that challenge President Obama. Paxton was indicted on Monday on three counts against him (Getty Images)
Melvin Capital, a hedge fund with $ 12.5 billion in assets under management, was a major short seller of GameStop, but on Tuesday closed its position at the video game retailer. The Wall Street Journal reported that Melvin lost 30% of the funds and that two other hedge funds, Citadel LLC and Point72 Asset Management, invested a $ 2.75 billion “emergency cash inflow” to stabilize Melvin.
When Robinhood severely restricted trading involving GameStop shares this week, users criticized the action as corrupt and manipulative. Some critics have portrayed the drama as an attack by Wall Street elites on ordinary Main Street investors.
GAMESTOP STOCK DOUBLE AGAIN WITHOUT LET-UP IN AMATEUR INTEREST
The SEC said it was monitoring events and important lawmakers on both sides called for investigations.
Discord said on Wednesday that it banned the group due to “hateful and discriminatory content”, but WallStreetBets moderators considered the move “unethical”.
“To be clear, we have not banned this server due to GameStop-related financial fraud or other actions,” a Discord spokesman told FOX Business earlier this week. “Discord welcomes a wide variety of discussions on personal finance, from investment clubs and day traders to university students and professional financial advisers. We are monitoring this situation and, if there are allegations of illegal activity, we will cooperate with authorities as appropriate. “
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WallStreetBets moderators said late on Wednesday that the community is “suffering from success and our Discord was the first victim.”
“You know as well as I do that if you get 250,000 people together in one place, someone will say something that makes you look bad. That room was made of gold and the people who run it are fantastic, ”wrote one of the moderators. “Discord got us dirty and I’m not impressed with them destroying our community instead of intervening with the key we may need to fix things, especially after we got more than 1,000 server raises. This is very unethical.”
Discord later said that he was working with WallStreetBets leaders to moderate a new server.
FOX Business’ Paul Best contributed to this report.