There has been much drama lately about the Gamestop shares after the Reddit group engineered a short squeeze on Gamestop.
U.S. Congress member Alexandria Ocasio- Cortez talked about the recent incident of Gamestop shares and how Robinhood suspended the trading amid controversies
Alexandria Ocasio Cortez Discussed Robinhood and GameStop Controversy
The member of the House Financial Services Committee Ocasio-Cortez, condemned Robinhood for suspending the trading of GameStop shares accusing the firm of benefiting the super-rich traders and sidelining the ordinary investors. She live-streamed on her personal channel on the Amazon Twitch platform to talk about the matter. More than 300 thousand users viewed the live stream. Ocasio Cortez discussed the recent incident of GameStop shares and spoke about the same with the guests on the hour-long show. She also expressed the various approaches for regulatory compliance for the stocks and finance issues.
There were several guests on the show, including Reddit co-founder Alexis Ohanian. Ohanian talked about Reddit group r/WallStreetBets, which led to the entire movement’s escalation to increase GameStop stock value. The Reddit Co-founder also talked about the impact of technology and economic conditions that press for the need for decentralization.
Alexis Goldstein, an author from Markets Weekly, was also on the show, and she said that the institutions get a systemic advantage over smaller retail investors. She pressed that the regulators and legal authorities can help and check the Fintech companies like Robinhood for their work ethics and whether they serve the customers righteously.
Recently, the Reddit message board users named r/WallStreetbets took on the hedge fund that was attacking a video game selling company, GameStop. The retailer of used games was undergoing massive losses. In November, a Reddit user noted that a hedge Fund named Melvin Capital shortened the GameStop stock. Through short-selling, the GameStop stock price fell tremendously. The Redditors decided to make shares of GameStop, which Melvin had manipulated much costlier to buy.
The editors bought call options for the shares and asked their peers and friends to buy GameStop Call Options, which led to a massive increase in the GameStop price. Robinhood trading app halted the trading of GameStop and several other companies, citing market volatility.
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