#R WSB GME DRIVER#

He added that he respects the market and has 'respect for the people on the Wall Street Bets and on Reddit message boards.' 'This has captured the attention of America and every trader and non-trader alike,' Left said. Left of Citron Research made the announcement in a YouTube video, saying Citron Capital let go of the majority of their bets that GameStop stock would fall and took a '100%' loss in doing so. 27, 2021: Major short sellers close - at a significant lossĬitron Capital and Melvin Capital, two firms shorting GameStop stock that were referenced heavily in the r/wallstreetbets forum, said on Tuesday that they were closing their positions. Shares soared by nearly 140% in after-hours trading. The Tesla chief executive has some 44 million Twitter followers and was already a popular figure among users of the Reddit forum - especially as Tesla stock soared in recent years despite questions over the company's actual valuation.Įarlier that same day, high-profile venture capitalist Chamath Palihapitiya also tweeted that he was investing in GameStop. The firm said that the following day at 11:30 am ET it would host a livestream announcing five reasons why GameStop 'buyers at these levels are suckers at this poker game.' 19, 2021: Citron Research calls GameStop buyers 'suckers'Ĭitron Research, a stock research firm run by famous short-seller Andrew Left, took aim at those buying GameStop stock in a snappy tweet on Jan. 'And as they sort of advertised that, people started piling into the trade and the momentum built.' Jan. 'In this sort of Wall Street bets culture, people take screenshots of how much money they've made or lost to kind of show off,' he said.

Moallemi also said some of the brokerage account screenshots - like the ones Gill posted - also fueled the frenzy.

'But then this sort of technical phenomenon, which is called a short squeeze, that was really sort the dynamite that was thrown on the kindling.' 'So it started out as kind of a little bit of a value investing story,' he added. 'And the act of capitulation is basically to buy back their short position, which will even drive the stock higher.' 'The reason why that's important is if there's people betting the stock is going to go down, and if they're wrong and the stock price gets pushed up, then what will happen is eventually they will capitulate and they will give up,' Moallemi said.

#R WSB GME DRIVER#

'The second part of the driver was the observation that there were a number of hedge funds who basically had a bet that GameStop would go to zero.'Īs the shares slowly edged up, these short sellers loomed large. 'That was part of the driver,' Moallemi said of GameStop's stock's meteoric rise. Gill did not immediately respond to ABC News' request for comment, though he told the Wall Street Journal last week that he 'didn't expect this.'Ĭiamac Moallemi, a professor at Columbia University's business school, told ABC News that Burry and Cohen fueled a 'small' but growing group that 'believed the market was discounting GameStop too much, and that there was some underlying value there and that the business could be turned around.' Gill and other members of the forum also cited the bullish GameStop stance of Michael Burry, the legendary trader who was portrayed by Christian Bale in the 2015 film 'The Big Short,' as fuel for their investment choices. Gill also posted screenshots of his GameStop portfolio on r/wallstreetbets as far back as 2019. In a July 27, 2020, YouTube video posted to his channel, Gill said, 'Some people won't even tune into the stream right now when they hear I'm bullish on GameStop, at the current price point it's traded at about four bucks right now.' Gill publicly touted GameStop stock long before it caught the eyes of Wall Street and the world. Many link the initial push in r/wallstreetbets toward GameStop to an individual investor identified by the Wall Street Journal as Keith Gill, but known on Reddit by his screen name 'DeepF***ingValue' or 'DFV' for short.

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