The stock market is something of a mystery to us all - and this week, Redditors have managed to hack Gamestop's stocks and cause absolute mayhem.
Reddit is one of the weirdest places online.
People can go there to talk about literally anything.
Which means there are some pretty niche subreddits.
Including those on the stock market.
But this week, something strange has happened on Reddit.
The community has come together to take down greedy hedge fund managers. How, you may ask?
By buying all the stocks in Gamestop.
The internet is going wild for this crazy, David and Goliath story.
It's pretty confusing stuff.
shorting a stock basically is betting that a stock will do poorly. this hedge fund shorted GameStop stocks. then a group on Reddit caught wind of their scheme and started buying GameStop stocks like crazy, inflating the price of the stock so this fund lost all all its money— kristen singhal's (@kylepfeeley) January 25, 2021
Luckily, Twitter was there to help explain the idea to any finanacial noobs.
And people are loving it.
bunch of dudes on reddit joined together to raise gamestop's stock price 150% just cuz and u want me to believe the stock market isnt just straight men's astrology— first-mate prance (@bocxtop) January 26, 2021
Just to let y’all know, people on Reddit are buying lots of shares in GameStop to raise the price of the stock. Doing this will make billionaires who bet GameStop stock would fall lose a ton of money and it’s the most beautiful thing I’ve ever seen. pic.twitter.com/IjhSfQeuv1— randall (@_ZevLoveX) January 26, 2021
Very thankful that I invested $100 worth of GameStop stocks last year as a joke— alpha!!! (@Alpharad) January 26, 2021
Me and everyone else wishing we bought an ass ton of GameStop stock when it was almost worthless a few months ago pic.twitter.com/uxbXZ2C1Og— Benji-Sales (@BenjiSales) January 25, 2021
The idea of buying GameStop stock and selling it a few hours later at a fraction of the price is the most GameStop shit imaginable.— Marty Sliva (@McBiggitty) January 25, 2021
I have officially recovered all the money @GameStop robbed from me as a child off of their stock.— Stock Lizard King (@StockLizardKing) January 26, 2021
The owner of Gamestop right now seeing their stock go up somehow pic.twitter.com/kK5LzrvkSs— Pizza Dad (@Pizza__Dad) January 22, 2021
I look forward to the economics textbook chapter about Game Stop stock.— Dan Fornace (@danfornace) January 26, 2021
Me watching my GameStop stock go up when I got it for free on Robinhood 😌 pic.twitter.com/2KXYdXlB9U— 🖤 (@C4mango_) January 26, 2021
Her: How did you become a billionaire?— StockDweebs (@StockDweebs) January 26, 2021
Bitcoin is so 2020. GameStop is the new store of value.— Aaron Levie (@levie) January 26, 2021
Many exceptionally rich hedge fund managers are losing money in the scheme.
You guys don't know how much damage you are doing with this gamestop thing. This is Reginald Esquire Esquire The 2nd and yesterday he was worth 821 million dollars. Today he's only worth 820 million dollars. He'll only be able to buy 3 islands this year because of you. pic.twitter.com/z4fe4cUarl— QuarantinedCoof (@QuarantinedCoof) January 26, 2021
Which the Reddit community has been finding absolutely hilarious.
But things have gotten more serious.
oh no the wrong people are manipulating the stock market— Brandy Jensen (@BrandyLJensen) January 26, 2021
And now the US government has had to step in.
Social Capital CEO Chamath Palihapitiya has called this story "a pushback against the establishment."
"Coming out of 2008, Wall Street took an enormous amount of risk, and they left retail as the bag holder."
"A lot of these kids were in grade school and high school when that happened."
"They lost their homes, their parents lost their jobs, and they've always wondered, 'Why did those folks get bailed out for taking enormous amounts of risk, and nobody showed up to help my family?'"
Nothing that has happened here is actually illegal.
Biden team is "monitoring the situation" around GameStop.— Jennifer Epstein (@jeneps) January 27, 2021
Nonetheless, it's been noticed by the government who may be inclined to step in in the future ...
Now Redditors are calling for action to be taken against trading platform Robinhood
CLASS ACTION AGAINST ROBINHOOD. Allowing people to only sell is the definition of market manipulation. A class action must be started, Robinhood has made plenty of money off selling info about our trades to the hedge funds to be able to pay out a little for causing people to loose money now from r/wallstreetbets
The app restricted users from buying stocks in various companies, including GameStop.
Following the restrictions being put in place people are choosing to use other trading apps.
Amid the call for class action against Robinhood, the company released a statement.
"We continuously monitor the markets and make changes where necessary," the statement said. "In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.