by Pam Martens and Russ Martens
Wall Street on Parade
When it comes to the shares of GameStop, most of the mainstream media’s focus has been on the Reddit message board commentators who stood to make millions of dollars from boosting the stock price. It’s a good bet that the SEC, FBI, Financial Stability Oversight Council, Senate and House investigators are setting their sights on those who stood to make…not millions but billions. The overarching question will be: did any of the big players engage in a direct role on Reddit or incentivize the people posting on the Reddit message board, WallStreetBets, to hawk the shares of GameStop.
It’s very clear from the volume of trading in GameStop that amateur traders are not the major movers of this stock. The stock has gone from trading less than 13 million shares a day in November to over 150 million shares per day on multiple days last week.
This is looking more like a vicious war between rich guys who held big stakes in GameStop versus a handful of hedge funds that were massively short the stock. (To short a stock means to bet the share price will fall.)