Ask HN: What the heck is happening with GameStop?

custards last stand...except billionaire hedge funds are the injuns.

Many articles online written about it explaining. It's basically a short squeeze against the old guard, big evil hedge funds/institutions holding short positions (sell) against Game Stop.

An entire "army" of retail investors inspired and collaborated (conspiracy ?) on wallstreetbets a subreddit to buy Game Stop stock, some say mostly call options, which overwhelmed the positions of the Big Boys. This may be a first in history where a band of smaller retail guys banded together to slay the big guys. There are over 3 million followers of wallstreetbets forum.

Fallout: Discord stopped serving them, and certain brokers halted their clients trading on Game Stop which likely angry traders having those accounts will close them and sign up with more reliable brokers who are not "providing cover for their enemies".

Some other stocks are also allegedly being bought by wallstreetbets, such as AMD theatres and KOSS, maker of headphones and speakers.

In the coming weeks Americans will see whether our democratic politicians "walk the talk" providing for more transparency in the markets or they capitulate to the huge institutions and hedge funds with new regulations that restrict the small retail investors further. For all of history these big institutions and hedge funds have been fleecing smaller retail traders.

Someone showed me a investigational report on the 3 major institutional players and their leaders and almost all of them have either paid huge fines to the SEC, or been indicted or under investigation at one time or another. Some are still actively under FBI and SEC investigation. Some escaped prison time.

Hedge fund managers were shorting GameStop. Made sense as GameStop is a brick and mortar game cartridge seller living in a digital download world. But they went too far. After shorting GameStop to death, they didn't stop. They kept piling on desecrating the GameStop's dead body with even more shorts for the lol's and last few drops of profit.

Then a thin line of lone autistic redditors came to the defense of their beloved GameStop. And starting buying shares. Autists everywhere joined the line, phalanx formation. They are holding the line against billionaires and media smears. Whatever the outcome they will be immortalized in history.

It started out as a fun joke, then people started making money, then from my view it got sort of co-opted into an occupy type thing.

Essentially there was a hedge fund who was heavily short in GameStop stock to the tunes of many millions. Once the subreddit community of WallStreetBets started applying buy pressure it made the shorts either add more/cover; or have to sell and when they do it adds buy pressure to the book. Led to a big gamma squeeze and this fund got caught off guard with poor risk management and the stock surged so much letting the small joe win for once in a game of smoke screen tactics by larger funds