The Gamestop Rebellion: Things to Know

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By Breitbart. Shares of GameStop and AMC saw tremendous gains this week as an army of small retailer investors beat back sophisticated hedge funds that had bet against the stocks. . .

Although GameStop’s meteoric price climb—from $35.50 last Friday to $280 today—grabbed lots of attention this week, a group of online investors have been saying the company was undervalued for over a year. Keith Gill, better known through his online handles Roaring Kitty on YouTube and DeepF*&^%Value on Reddit’s WallStreetBets group, started buying up shares in 2019. . .

An investor who is short a stock makes money when the share price falls. But when the price climbs much higher, the investor has to cover the short by buying the share at a higher price. This buying activity can force the price up further, forcing even more buying, creating a spiraling price effect known as a short squeeze.

That’s what happened to several hedge funds this week as companies they had bet against—including AMC, headphone maker Koss, and GameStop—began to rise. They were “squeezed” out of their short position. In fact, many of the WallStreetBet posters predicted the short squeeze but to others it seemed far-fetched that retail investors would be able to force the hands of major Wall Street investors. . .

On Thursday, many of the major online brokers restricted some trades in the stocks that had run up so much earlier in the week. This was largely a reaction to higher margin requirements imposed by behind the scenes players, such as market-makers and the The Depository Trust & Clearing Corporation, the company that ultimately clears stock trades. But the operations of these companies are cloaked in mystery and the brokers did not do much to explain why trading was restricted. To a lot of investors it looked as if Wall Street was striking back by limiting their ability to trade. (Read more from “The Gamestop Rebellion: Things to Know” HERE)

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Meghan McCain: Gamestop Stock Story ‘Is What Happens When the System Feels Rigged’

By Daily Caller. Meghan McCain said GameStop stock story is “what happens when the system feels rigged” and said it’s like a “mirror to the world of everything that is wrong.”

“The GameStop stock story is like a mirror to the world of everything that is wrong,” the cohost of the ABC talk show “The View” tweeted Friday to her hundreds of thousands of followers. . .

As previously reported, a group of Reddit users managed to drive GameStop’s stock up more than 600 percent in one week, with its share price going from $43 on Jan. 21 to $330 less than a week later. The results left hedge funds facing financial ruin.

“The View” cohost allegedly first tweeted a comparison between the Capitol riot and GameStop stock story, before she allegedly deleted it.

(Read more from “Meghan McCain: Gamestop Stock Story ‘Is What Happens When the System Feels Rigged’” HERE)

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Barstool’s Portnoy on Robinhood: Pausing Trading ‘Flat-Out Criminal’

By Breitbart. Barstool Sports founder and President Dave Portnoy on Friday ripped trading app Robinhood as “flat-out criminal” for restricting purchases of GameStop shares on its platform.

Portnoy said on Fox Business Network’s “Varney & Company” that Robinhood “basically stole money from their own clients.”

“[T]hey intentionally cratered a bunch of stocks … by not letting people buy it — only selling it,” Portnoy told host Stuart Varney. “There was only one outcome — crater the stock. They basically stole money from their own clients. They knew that was going to happen to help the hedge funds basically cover. Is there proof of that? If they do the investigation right, I’m sure there will be. But, you know, it’s one to say we’re worried and you freeze the market and you can’t buy or sell and the people liquidate what it is, fine. But to intentionally crater the stock at the expense of your customers, well, that’s criminal in my mind. Flat-out criminal.”

(Read more from “Barstool’s Portnoy on Robinhood: Pausing Trading ‘Flat-Out Criminal’” HERE)

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