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What is the GameStop crisis? Facebook first responders

In October 2020, so a few months ago 5 dollars in US stock markets Gamestop shares being traded today Up to $ 492 reached. Naturally, a share appreciation of more than 8 thousand percent was not normally met. The arrival of Gamestop stock to this point is the result of a war between small investors and huge funds like Wall Street.

In its simplest form, what is the GameStop crisis?

To put it simply, the retail chain that sells games GameStop has been experiencing serious blood loss in recent years. By the end of 2020, Wall Street ‘hedge funds’ will try to short-sell the shares of this company, i.e. that the shares will lose value He started playing (short).

Big investor became ‘little fish’ this time

On the other hand, GameStop, which closed 2020 with $ 18.84, left behind $ 40 in January, with small investors acting through the groups on Reddit to buy the shares. Big investors are almost like buyers Things got a bit hotter after his insult and the company’s stock rose to $ 400 levels. Of course, this situation caused serious damage to the trading funds and even the bankruptcy of some of them.

The funds have to return the shares they have shortlisted, or borrowed. However, the shares they bought from a few dollars level have now reached the level of hundreds of dollars. If the situation continues like this for a little more, the little fish will eat the big fish and billions of dollars in losses will occur.

Facebook closes Robinhood Stock Traders group

Facebook shut down Robinhood Stock Traders, a popular Wall Street discussion group, in response to speeches reviving the shares of GameStop Corp and other companies. Allen Tran, 23, who lives in Chicago and founder of the Robinhood Stock Traders group, said he woke up Wednesday with a notification of the deactivation of his 157,000-member group.

While the reason for the group’s closure to be reported as “adult sexual abuse” is found quite absurd, everyone is sure that such content is not shared. Some members of his group have stated on Reddit’s WallStreetBets forum that they have made tens of thousands of dollars in recent transactions that are popular.

Facebook spokesperson Kristen Morea argued that the group’s shutdown had nothing to do with the stock craze, it was removed because it violated Community standards.

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