Day Traders Vs. Hedge Funds

Individual investors gathered at the online community Reddit’s subreddit “Wall Street Betz” this week aggressively bought Game Stop and Bed Bath & Beyond to raise the stock price. Gamestop, which was an unpopular stock, surged more than 1000% in two weeks, and hedge funds Melvin Capital, which bet on a decline in the stock price, suffered enormous losses.

The stocks mentioned on Reddit like this are showing a sharp rise not only in the US but also around the world. The UK’s Pretrade said that during the first two trading days of this week, Gamestop stock purchase orders were 177% more than the whole last week.

Amid fluctuating stock prices, the Securities and Exchange Commission (SEC) has announced that it will focus on investigating the relationship between Citadel and Robin Hood, but the prospects of the policy authorities’ response are uncertain.