At the cusp of the year, for a brief moment in time, it was as if covid-19 was a thing of the past. GameStop mania took over the financial markets and further bled over into the average media.
It was driven by a collective of anonymous and risky speculators who wanted to squeeze out the big guys for once. They bought GameStop shares which drove up the stock. It then triggered a squeeze for the hedge funds and speculative investors who were on the deal.
The plan worked to near perfection. The little guys were celebrating and harvesting the power of network effects on the internet. But then the party came to an abrupt end. Robinhood decided to halt all trading of GameStop shares and other “meme stocks”. But why? That’s the question that has been lingering around the minds of the collective at the time.
Since then, there have been countless accusations, incoherent statements, and a statement by their CEO ken Griffiths denying the accusations in front of Congress.
What’s surprising is that after 9 months, they finally folded under the pressure due to a recent trend on Twitter. Releasing a series of tweets of course denying any involvement:
It remains to be seen what will happen. Regulators haven’t released any official or solid report as yet. Investors are still curious as to what might’ve occurred, let’s see how it goes over the next coming months.
