Over the past few days, one of the biggest stories has been about how a group of Reddit users were able to influence games retailer GameStop’s stock price, making themselves money and causing Wall Street investors to lose big dollars in the process.
While the whole situation can be confusing, streamer TheStockGuy fortunately broke it down in a simple way on a recent stream. As the streamer explained, many of these Wall Street investors were banking on the stock price falling and chose to short the stock, a method of borrowing stocks to be sold later once the price had risen.
Unfortunately for them, however, with prices continuing to rise, the Wall Street investors are now buying the stocks back at a higher price, losing money in the process. The group of internet investors who led the charge investing in GameStop is believed to have originated on the Reddit community WallStreetBets.
Just within the past few hours, the WallStreetBets Discord was taken down after violating the terms of conditions regarding hateful and discriminatory content. On the same day, the subreddit was also shifted to private, sharing a statement explaining that due to the spike in members it was no longer possible to moderate the subreddit.
Fortunately for users looking to get in on the action, it appears a new discord has been opened with thousands of members climbing in minutes after opening.