Reddit group WallStreetBets behind huge GameStop, AMC run-ups is as soon as once more public after briefly going personal
Rafael Henrique | SOPA Pictures | LightRocket via Getty Images
The Reddit chat room “Wallstreetbets”, in which private investors compete against short sellers, was briefly privatized on Wednesday evening, which restricted access to outsiders.
The community gathered an army of rookie day traders who were heavily shorting, pushing stock prices higher, and crowding out short selling by hedge funds. Forum members exceeded three million on Wednesday.
The forum became public again at 7.45 p.m. However, the moderators have locked the popular GameStop thread so that users cannot post new comments.
“We have grown to the size we only dreamed of in the time when we could not sleep well,” said the WSB moderators in a post. “We have so many comments and posts that we can’t possibly read them all, much less act as moderators. We’ve written software to do most of the moderation for us, but that software isn’t allowed to read them.” Reddit new feed fast enough and sending replies and the admins didn’t give us special access even though they asked for it. “
GameStop, a brand new destination in “wallstreetbets”, saw its shares rise more than 400% this week alone. The brick and mortar video game retailer has soared a whopping 1,700% as retailers continued to encourage each other to stack.
Another hot topic in the chat room, AMC Entertainment, rose more than 300% on Wednesday alone, posting its highest volume ever.
GameStop fell more than 20% in expanded trading on Wednesday while AMC fell more than 38%.
A Reddit spokesperson said “wallstreetbets” presenters are temporarily putting the community on private.
“Reddit’s website-wide guidelines forbid posting illegal content or soliciting or facilitating illegal transactions,” the spokesman said. “We will review and work with any valid law enforcement investigation or action as necessary.”
Many of the top posts in the chat room include screenshots of investors’ brokerage accounts showing massive returns from trading GameStop and other names. Some of these avid investors are calling out short sellers in sometimes mundane language and awkward internet memes.
Some on Wall Street were increasingly concerned that the Reddit crowd’s buying frenzy could potentially destabilize the market and hurt general confidence. In the meantime, rising losses from hedge funds could spill over into other areas of the market.
The social platform Discord banned the “wallstreetbets” chat room on Wednesday.
“The WallStreetBets server has been on our Trust & Safety team’s radar for some time as content occasionally violates our community guidelines, including hate speech, glorifying violence and the spread of misinformation,” a Discord spokesman said in a statement.
“In the last few months we have issued several warnings to the server administrator. Today we decided to remove the server and its owner from Discord in order to continue to allow hateful and discriminatory content after repeated warnings,” added the spokesman.
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