No, WallStreetBets isn’t robbing Wall Avenue to assist the little man

A closed GameStop store in Frankfurt, Germany, on Friday, Jan. 29, 2021.

Enlarge / A closed GameStop retailer in Frankfurt, Germany, on Friday, Jan. 29, 2021. (credit score: Alex Kraus/Bloomberg by way of Getty Photographs)

You have in all probability seen tales about GameStop, the struggling online game retailer that has improbably seen its inventory quintuple because the begin of the week. The inventory is not up as a result of GameStop introduced sturdy monetary outcomes or a brand new turnaround technique. As an alternative, it was the main focus of a coordinated shopping for marketing campaign by members of the WallStreetBets subreddit.

The trouble has been so efficient partially as a result of its architects have satisfied those that it is not only a pump and dump scheme. As an alternative, they’ve painted a seductive story through which retail traders discovered a loophole that enables them to make cash on the expense of hedge funds and different rich traders who had shorted the inventory.

In actuality, a lot of the positive aspects captured by early GameStop traders will come on the expense of later traders who shall be left holding the bag when the inventory falls.

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