In a seldom seen scenario on Wall Street, the “little guys” turned the proverbial tables on the “big boys.” The big winners were WallStreetBets, a subreddit on Reddit that focuses on stocks that are overshorted by greedy hedge funds whose only goal is to destroy a company and make tons of cash doing it.
In a series of transactions that drew worldwide attention in the financial industry, WallStreetBets invested heavily in GameStop, much to the chagrin of London-based White Square Capital, which bet against the American consumer electronics and video-gaming firm. The final tally: WallStreetBets crushed the hedge fund, forcing them to shut down following double-digit percentage losses. Says Mr. Obvious, “The rich guys are losing and the little guy is winning. That’s what this is all about. We’re tired of corruption on Wall Street, we’re tired of a fake stock market.” And, he adds, many other hedge-fund firms have folded under the same circumstances. Here’s more.