How "Reddit Traders" Changed the Course, Destiny and Impact of Retail Trading

Game-stop, drop and rally!

What occurred on Reddit and subsequently on the stock market with the GameStop (GME) shares has been hailed by many as a revolution in finance. Whether this event is worthy of the word, remains to be seen. After r/WallStreetBets discovered the $55m-large short position that Melvin Capital had acquired against GME, they called upon retailers to rally the share.

Lo and behold! The company which was closing in on bankruptcy received a gain of 779% in a month. But with a 30% drop in quarterly revenue and assets worth no more than $2bn, GameStop’s worries are not over. In any case, investors hope that Ryan Cohen a new entry to the GameStop board will turn things around.

The rally poured over into the precious metals segment driving up prices for silver and gold. Perhaps, hedge funds are not all bad as they reduce volatility in the market and balance the scales. This incident throws up questions about financial autonomy, democratisation of finance and even law enforcement and regulation.

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