Robinhood app and Hedge Funds

[Eva]

There is an amazing amount of brouhaha in the social media over the last couple of days, relating to a strong minded group of retail investors taking on few hedge funds, and causing a bit of damage.

So few Hedge Funds took short positions on a stock of company called GME (GameStop), and a group of retail investors on Reddit (calling themselves Wall Street Bets) decided to be contrary and purchase stock, driving it’s value several - fold up, and giving Hedge Funds a bloody nose when Hedge Funds faced a hefty margin-call.

Apparently, the retail investors (calling themselves “degenerates”) caused at least 19 BILLION losses in a fascinating battle of internet activists versus Establishment.

[mosigman]

19 billion and counting… it’s a sort of reckoning between Hedge funds and retail investors in the US; it’s the people that grew up during and in the aftermath of the Great recession.
Lots of resentments out there; can’t say I don’t agree with all the underlying grievances.
And now it’s become a global fenomenon; lets not forget that not only people in the US were affected by the reckless investments done in Wallstreet in the years prior to 2008.
It will end badly, but it was a long time coming.

[KarenM]

And did you know…now a group of XRP enthusiasts are going to try to do the same thing this morning?!

[predictor]

I really don’t like what is happening, at first there was some reasoning behind all the drama.
But now there are big groups that are using this situation and openly try to manipulate prices.
Any good intentions are lost now, just pumping and dumping of different assets on newcomers while talking about how bad hedge funds are.

All those massive wicks and huge volume are obvious signs of weird things happening.

[Eva]

@predictor

Any good intentions are lost now, just pumping and dumping of different assets on newcomers while talking about how bad hedge funds are.

I agree completely. I see lots of use of statements that are meant to get emotional response, and emotional and rational do not really mix in making market decisions.