GameStop has been a buzz word over the past few days after the battle between small-time traders and hedge funds shook US and European stock markets. The battle moved into Asia on Thursday, with surges in several Australian companies squeezing another batch of financial institutions that have bet on the stocks falling.
A lot of people are scratching their heads to get a hang of things and to understand what exactly is happening and what do all these new words mean. So, actress Avalon Penrose decided o come up with an explainer video to break down the things for everyone else in the simple most ways understandable to a layman. Her hilarious video has gone viral with over 3 million views.
And even Elon Musk is impressed with her brief lecture!
A hedge fund that shorts is a shrubbery— Elon Musk (@elonmusk) January 28, 2021
Alot of drama has unfolded on the Internet lately after Reddit's subreddit r/WallStreetBets propelled a meteoric surge in American videogame company GameStop's shares soaring over 400% this week, after aggressive touting of GameStop's stock by several of its members.
The soar in GameStock was the result of actions that appear to have helped fuel a so-called short squeeze in GameStop (GME) stock, where investors who had used options to bet against the stock needed to cover those bets by buying shares.
WallStreetBets has since turned its attention to other stocks, with movie theatre chain AMC (AMC) spiking more than 300% on Wednesday.
In a post soon after making WallStreetBets public again Wednesday evening, the moderators outlined their struggle to manage the group's surging popularity.