After an unlikely feud between Redditors and Wallstreet elites erupted last week, a scorned amateur investor decided to take matters into his own hands...
By flying a crude message over the Robinhood HQ in San Fransico.
It doesn't get any more Reddit than that, does it?
Here's the full story...
Now, how did this all happen?
Well, it all started when institutional investors saw an opportunity to profit from betting against the struggling game retailer, GameStop's share price.
All of this was pretty standard...
Until users on a Reddit forum called "WallStreetBets" decided to buy into GameStop shares, initially because they thought it was undervalued, then to send a message to the short-sellers, who had been betting that GameStop's stock would fall.
Acting in unison, they pushed up GameStop's share price to astronomical levels...
14,300 percent, to be precise.
Several Reddit users called for people to pile into GameStop shares...
Pushing up the price to put pressure on the short-sellers - a process known as a short squeeze.
The r/WallStreetBets forum understood that if they could create artificial demand for GameStop shares with their own money, they could force Wall Street to recalibrate its bets...
Thus pushing prices even higher, and ultimately forcing some investors who couldn't even back up their bets against GameStop to pay even more.
As of January 27th, short-sellers seemed to have lost $5 billion bettings against GameStop this year, according to Investopedia.
@RollingStone The most punk rock thing to ever happen in the stock market. $GME #GameStop #WeLikeTheStock— MachoMan RandyStucki (@MachoMan RandyStucki)1612144178.0
And about $1.6 billion, or about half, of those losses happened on January 29th when the stock jumped fifty-one-percent.
"We're seeing a phenomenon that I have never seen," Jim Cramer, a Wall Street commentator on CNBC and a former hedge fund manager, said on the unexpected series of events.
GameStop's dramatic jump in value demonstrated the power that co-ordinating via social media can have...
The savior of America. #GameStop #AMC https://t.co/63qKHTaYg7— Keith Glenn (@Keith Glenn)1612139092.0
And also showed that short-sellers may need to think again about betting against a company they think is in decline.
But, of course, regular folk making this much money will never be acceptable to the powers above.
Trading company, Robinhood, quickly responded to the fluctuations by restricting trades of GameStop, AMC, and other fast-moving stocks during the chaos.
It didn't take long for people to turn against Robinhood...
Fully agree. 👇 https://t.co/rW38zfLYGh— Ted Cruz (@Ted Cruz)1611852477.0
With US Reps. Rashida Tlaib, Alexandria Ocasio-Cortez, and Sen. Ted Cruz publicly criticizing its decision.
Both democratic and republican politicians have called for an investigation to be launched into Robinhood...
Meanwhile, many angry Redditors say they'll stop using Robinhood altogether, while some have even threatened to join a class-action lawsuit.
Tesla CEO, Elon Musk even waded into the equation.
Elon Musk grilling the CEO of Robinhood on Club House was....the first time I’ve ever heard somebody verbally raise an eyebrow.— ❤️🙏🏻Sophia🙏🏻❤️ (@❤️🙏🏻Sophia🙏🏻❤️)1612165354.0
Because of course he did.
In a live stream on the Clubhouse app, Musk was given the chance to ask a series of questions to Robinhood's CEO, Vlad Tenev.
And he wasted no time getting straight to the point, asking the Robinhood boss:
"What happened last week? Why couldn't people buy GameStop shares? The people demand an answer!"
And, when Tenev attempted to justify the response to the stock surge, Musk snapped back:
"Is something maybe shady going on? It seems weird that you'd get a USD 3 billion demand at 3am."
But, before Musk's grilling, it seems that scorned amateur investors had already taken matters into their own hands.
@KasparCMS This has been one of the funniest weeks ever. $GME $AMC to the moon!— G-Funk (@G-Funk)1612108019.0
On Friday, Twitter user, KasparCMS, shared his plans to fly a somewhat inflammatory banner through the skies directly above Robinhood's San Francisco headquarters.
"SUCK MY NUTS ROBINHOOD."
It's happening. At 3-4:30pm PST a plane will be flying a banner over San Francisco that says "SUCK MY NUTS ROBINHO… https://t.co/alyMfMelG4— Kaspar (@Kaspar)1611950853.0
Yep, despite losing out on millions, this investor evidently had enough money to scrape together to pay for a personalized message to be flown across Robinhood HQ.
Residents of San Fran saw the banner Friday afternoon...
@KasparCMS Holy shit. You sir, have won the internet! This is FANTASTIC!— Kerrie (@Kerrie)1612070117.0
Much to the delight of many.
Here is the banner itself...
🚨 PLANE IS IN THE AIR https://t.co/VdyOiU6Jj4— Kaspar (@Kaspar)1611961508.0
Pretty huge, isn't it?
And here it is in action.
When i die just put this video of a banner that says "SUCK MY NUTS ROBINHOOD" being flown over their HQ on my grave… https://t.co/8NAOoeS8xX— Kaspar (@Kaspar)1611975221.0
Further updates on the Robinhood drama will be posted accordingly.