The Internet vs. Wall Street: GameStop short squeeze explained 🚀

How is GameStop's skyrocketing stock and a subreddit connected? Jeff Bakalar talks with CBS News' Business Analyst Jill Schlesinger about how the internet took on Wall Street and why none of this is about videogames at all.

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100+ comentarios:

Im proud of reddit.
Big Banks: do this literally every weekday
Subreddit: *Does this once*
Big Banks: wait, that's illegal
It's not dangerous if you spread the risk out amongst thousands of reddit users going up against a few hedge funds.
Skeptical Dude
Skeptical Dude:
The professional Cheaters on WS are mad because "the people" are making money playing their games by their rules, what a joke, wallstreet is as evil and the deserve what they get.
Sukhbir Sekhon
Sukhbir Sekhon:
Hedge funds are sick for trying to predict when a company will fail. They've profited from this for years and been hailed as geniuses. Good to see them get their comeuppance.
Ok, the trolling level has now entered another dimension
Lin Woodnymph
Lin Woodnymph:
Not illegal. They're going by the rules you richy rich elites have been doing for decades.
Only difference is Joe Regularguy is doing it, you lost money to Joe Regularguy, & yous mad & scared.
Boo f'ing hoo!
Mae Looche
Mae Looche:
The wisest thing that should be on every wise individual's list is to invest in different stream of income and don't depend on the government to bring in money especially now the pandemic is hitting the economy
Punjab Police PB32 District
Punjab Police PB32 District:
"The Age Of The Elite Is Over, The Age Of Redditors Has Come" - LoTR
You 100% missed the story. The story is that Robinhood, TD Ameritrade and Interactive Brokers have halted purchases on GameStock. This means that these trading companies are protecting the hedge funds. That is the story that needs to be told.
Retardus Maximus
Retardus Maximus:
We like to do a bit of economic trolling. It’s called economic trolling
I can see my house from up here 🌙
Liquid Ketamine
Liquid Ketamine:
The cool thing about this story is that a bunch of degenerates from Reddit (I’m a member of the sub btw) moved the market that way.
Me: I don't understand

Gets explained

Me: Oh.....I still don't understand
James Owen
James Owen:
The entire world is watching the next moves in GameStop Corp. The sensational stock is now seen as emblematic of a late-stage rally in Wall Street. There’s a lot of money flowing into the stock market and investors should invest more money like never before.
Can’t stop, stop won’t stop 🚀. To the moon
This does not actually explain what happened, it just dances around some of the concepts involved.
An ACTUAL explanation (this is very simple, in a nutshell explaining. Do not come for me)
>Hedge funds manipulate market to tank GameStop stocks, putting it in a good position to be shorted
>Hedge funds short sells GameStop stocks, expecting the price to go down furthur for profit off low buy-high sell margin
>Reddit swoops in and actually buys those stocks outright at low prices in large quantities, driving price up
>Hedge funds are now screwed, margins of loss growing ever day
>Hedge funds cannot buy the stocks they are obligated to because those stocks are now owned by Redditors who are not selling, and any they CAN buy only drives the price (and their losses) up higher
>On top of that, these assholes oversold stock at something like 140%, meaning there's literally not enough stock in the entire company for them to buy to cover what they shorted.
TL;DR the hedge funds are going to implode thanks to their own greed and its hilarious
Angelo Rohit
Angelo Rohit:
What this video conveniently forgot to mention is that the hedge funds shorted the stock to 140% of the available shares. They got so greedy that they manipulated the market into triggering a death spiral for the company. There are real-world consequences to this behaviour and the SEC has been letting such malpractices go on since the 2008 financial crisis. Only this time, people on the wallstreetbets subreddit decided to band together and stick it to the man. The retail investors are simply buying stocks in droves. There is absolutely nothing wrong with that. If giant hedge funds can freely short as much stock as they want to, you as an individual should be free to buy as much stock as you want to. 🚀🚀🚀🌑
Marco Vinicio
Marco Vinicio:
I learned more from the Comments than from the video.
Geoffrey Bronson
Geoffrey Bronson:
4chan elects a meme president, Reddit causes a financial crisis.
I love this timeline.
Horrible explainer. I thought you would have someone who understood what happened. They neglected to mention these shorters manipulated the market to put GME into the ground and shorted it to over 100% of available float. All that's happening is retail investors noticing the institutional greed and taking advantage of it.
The Scarecrow
The Scarecrow:
Hedge Funds are scared. Good. If the billionaires say it's bad, it's good.
Joseph Lupo
Joseph Lupo:
Several greedy hedge funds target companies to short to make money. Many of those companies are otherwise viable but are destroyed. Robinhood is now siding with the greedy hedge funds, sadly.
Retail investors win! "Delicious"
Tyrone Midzi
Tyrone Midzi:
Quickest 100k I’ve made. Less than 24hours. Power to the people !
I love this!!!. They are showing how this market is a joke.
Tom Tom
Tom Tom:
Unmmmmmm... so I bought GameStop in like 2012 and kinda just sat on it. Can y’all please keep it up 😳
Ochieng Rodgers
Ochieng Rodgers:
She dint mention how hedge funds short stocks and then go back bad mouthing the same stock instilling fear among investors and making them sell at very low prices. Their aim is for the stock to go down as low as possible so that they can buy back at lower prices oblivious of how others loose money!
The whole Wall Street getting screwed Head Line put a BIG SMILE on my face :D
"Don't get wealthy, the WallStreet hates competition." - Former Congressman Ron Paul
A. Lee Martin II
A. Lee Martin II:
She and he left out how they snorted the stock over 100%. They made a bad move and Reddit just saw their mistake and pounced.

Way to go Reddit!
Karl Munford
Karl Munford:
The lady has it wrong, the people who run _'shorts'_ don't *make money* the just *take money,* other people's hard earned money they are simply parasitic adding nothing to this world.
"The table is tilted folks. The game is rigged!" - George Carlin
Aggressively Mediocre
Aggressively Mediocre:
Couldn't have happened to a nicer group of people. lmfao.
Reinier van Ramshorst
Reinier van Ramshorst:
She conveniently doesn't explain agressive naked short selling
Christopher Millar
Christopher Millar:
i don't know who needs to hear this, you've got to stop saving money.invest some part of it if you really want financial freedom.
I watched "The Wolf of Wall Steet" last night before I knew about all of this.
U.P. dan
U.P. dan:
Boycott Walmart and Amazon. Fight back against the billionaires in many ways. Cancel those accounts.
Turbo Duckhead
Turbo Duckhead:
The press is now saying “White Supremacists are responsible”
Imagine owning 1000 Gamestop stocks that cost $5 per stock last year. and now it’s worth $100 per stock. This is like going to a casino you spend $20 on a slot machines and win big money on a short time. Bring home the money!
None of the wall street investors were held responsible for the 2008 collapse. This is revenge. HOLD THE LINE.
James Whoever
James Whoever:
Tell me how I am the bad guy when these hedge funds somehow shorted the company to 140% of all existing stock. How is it legal to have 40% more stock then existing in the market.

Hedge funds put themselves in a bad position and now millennials and zoomers are going to make money off their stupidity.
Imagine being the dude who lent their game stop stock to a hedge fund so they could short it.
Tigre 69
Tigre 69:
Good for the reddit users,I love.
Ace 28
Ace 28:
Other hedge funds must be smelling blood in the water. Let's see if the short AMC.
Quang Nguyen
Quang Nguyen:
What a time to be alive. Holding long and 💪
Drool Alot
Drool Alot:
They hate when the little guy wins
Johnny Johnny
Johnny Johnny:
"There you have it, it's just business as usual"
Yeah, not at all tho.
marko 2001
marko 2001:
Reddit does something cool for once.

Btw, I got ads for Investing and Dips
David Hasenford
David Hasenford:
Gamestock to the MOON. Wooo!
Love How Reddit Made A Company to The High Rise of the Stock Markets.
Ana Lisa Melojete
Ana Lisa Melojete:
Those hedge fund managers got a really hard beat up. I cannot imagine the massive losses in their portfolios.
Mario Vallanzasca
Mario Vallanzasca:
They deserve it!!! That's the free market they all love and now they don't like it anymore🤣
Tautvydas Kaziukonis
Tautvydas Kaziukonis:
You gotta love internet at times like this! You made papa Tautvydas proud 😥
Karl Ascuasiati
Karl Ascuasiati:
They basically did the same to toys r us bankrupt toys r us on purpose living people without jobs and no pensions and we should feel bad about them...
"Don't stop me now, im havin such a good time, im a going to the moon🚀"
Charles McBride
Charles McBride:
When you learn the dirty tricks aha
Taste of their own medicine
President of The Internet
President of The Internet:
They shorted the shorters - perfectly legal and very very smart.
If this is banned - then there is no free market and no free market = no real valuations = total stock market collapse.
Pepijn 15
Pepijn 15:
Important lesson.

Never declare war on the internet.
Adonay Haddish
Adonay Haddish:
Can't Stop, Won't Stop, GameStop..... be part of History! we got this
Go to a casino. The casino will never tell you what to bet on.🚀
Google Nutzer
Google Nutzer:
$AG is next! Let's go!
Amazingly clear explanation, thank you. I would have taken all year.
what happened to your eyebrows?
and thanks for posting this. I really enjoyed the explanation
Sir. ButtersWorth
Sir. ButtersWorth:
"I am so proud of this community"
Power to the common man 💪
Edmund Cheung
Edmund Cheung:
You look like someone who would have been personally involved.
A Guide on Living in Jacksonville FL W/ Artie Cox
A Guide on Living in Jacksonville FL W/ Artie Cox:
Good stuff, thank you
Charlotte Jones
Charlotte Jones:
Gamestop (GME) shares continued moving higher in early trading on Thursday, with GME having broken through $500 in early pre-market trading. it’s best for investors to utilize every opportunity and also seek the right guide that has the potential of generating greater returns.
Minecraft Mike
Minecraft Mike:
Alex Monroy
Alex Monroy:
"The amount of money you feel like you can lose"

Okay, All in. GME to the moon 💎🤲💎🤲💎🤲💎🤲
Learning and I enjoy it. Thank you for the great stuff here.

That was Jeff Bakler, right...
Yeah, thanks. 👍
Go buy GME and AMC!
Darius Bobar
Darius Bobar:
just waiting for the internet historian video.
The mantis
The mantis:
Man, I just want a ps5 🥲
Andika Rachman
Andika Rachman:
The time has come, when a forum in the internet could break the stock market 😅
Finally I get it thanks!
OG Lurker
OG Lurker:
Had to pause the video as I got the notification I was approved to start investing
1 thing I learned is that “I’m not weird for having Reddit”
Regular Sherlock
Regular Sherlock:
Shory squeezing a hedge fun so much that it goes Bankrupt - Uno Reverse Card
Lol it’s amazing 🤩
BetweenTwo Lungs
BetweenTwo Lungs:
I recommend light frying your rich before eating them.
Jokes on them, I've been poor most my life. Got 8Gs standing by to fill buy orders in the morning. GME, I like the stock.
Matsu XL
Matsu XL:
Aunt Jill! 😍 miss the 404!
Leo N
Leo N:
We the Gamers, love GameStop!
Cosmic Cowboy
Cosmic Cowboy:
This is what we can do when we unite for the common good of each other.
Community going against the elites. I love it. Usa shouldnt be run by elites who take 90% of the money.
Dominique Martinelli
Dominique Martinelli:
Great explanation.
Mathy Don
Mathy Don:
Buffalos are great, totally delicious 🤤
Ninad Antrolikar
Ninad Antrolikar:
Wallstreet Hedge Funds up yours
Thank you Reddit users!😘

Wallstreet institutions screw up retail investors all the time but when the tides turn all of a sudden Wallstreet thinks this is illegal. Such hypocrisy.
Harold V O
Harold V O:
HYDRA Sentinel AI Phase Zero
HYDRA Sentinel AI Phase Zero:
Show them no mercy!
Hold the line!
lion king
lion king:
that lady explained this perfectly
7/11 inside job
7/11 inside job:
I like how pretty much every mainstream media outlet is like, there's good and bad people on both sides.

who dat boy?
who dat boy?:
The internet always wins.
Reddit edge lords, I salute you.
When robin hood protects the rich....
Faiz Nordin
Faiz Nordin:
2021 gonna be a great year for sure
Pearce Packman
Pearce Packman:
This is hilarious