• Stock Market Reddit's 'Revolution' on GameStop Shakes Wall Street's Foundations

  • USA The GameStop case or how a 'trolling' on Reddit triggers the shares of a company adrift

Wall Street

has a key week ahead of it to rebuild itself after the shock that the GameStop case is assuming.

There are billions at stake, in addition to the billions already lost by some of the

most powerful

hedge funds

in the country.

Melvin Capital

, one of the most exposed in this episode, has lost more than 53% of its assets in January due to the impact of its investments in GameStop and other securities, according to sources close to the firm cited by

The Wall Street Journal

.

According to its information, Melvin Capital started the year with around 12,500 million dollars, compared to the little more than 8,000 million it has now, although that last figure already includes the 2.75 billion dollars that its partners had to inject, Citadel and Point72, to avoid further damage and that it could continue to operate.

Melvin is one of the worst unemployed after the

financial offensive launched by a group of investors

individuals organized in the social network

Reddit

.

The episode began about ten days ago, when said investors, grouped under the name of

WallStreetBets

, agreed to buy mass shares in GameStop, a chain of video game and electronic components stores with a delicate financial situation.

Their objective was to prevent funds with bearish positions in the company from taking financial advantage of their collapse and, for the moment, they have succeeded.

GameStop titles

add up to a 1,600% rise so far this year

, most of it accumulated in these last sessions.

Investor reviews

But it is not the only company affected by this episode.

Others like the chain of cinemas

AMC

-which rose almost 280% last week- or the

quasi

disappeared

BlackBerry

-which has gained more than 110% in the last month- have also been triggered by the crusade between large and small investors.

For their particular feat, Reddit foreros and their followers have used tools such as

Robin Hood

, an investment platform that initially allowed you to buy and sell shares without limit.

Initially, we repeat, because at the end of last week it decided to restrict operations on the companies involved.

The decision immediately provoked criticism and reaction against thousands of users of the app and even the popular Democratic congresswoman

Alexandria Ocasio-Cortez

, so they consider unequal intervention in the market.

The

SEC

(the market supervisor in the US) and the US Congress itself have announced that they will investigate what happened in the last sessions.

Meanwhile, many questions remain in the air, such as how long it will take for GameStop's share price to drop.

what that decline will be like and, above all, what consequences it will have for the hundreds of thousands of people who have invested in the company these days encouraged by the unstoppable rise and by an apparent spirit, never better said, of Robinhood.

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