Some guys started getting organized to buy and push up the price of some specific stocks they chose, specifically the ones with big short positions so they can do a “short-squeeze” and make a big push to the upside. At first, they were happy making gains and having fun, until they screwed a bid fund. They became too big and decided to long GME, where Melvin Capital (big hedge fund) had a very large sell position. It is estimated they lost about 7 billion dollars (not officially stated) due to this short-squeeze made by WSB. From here everything looks legit, maybe not the smartest thing, but legit in the end. Some people managed to win a hedge fund and make big gains, but this is not the end of the story. After this, Melvin Capital claimed to have closed their short position in GME (it is not proven and some people claim they haven’t) and this group organized in Reddit planned to continue with their operations until the big whales acted against them. Somehow, in a matter of hours, their subreddit got banned (although they re-opened it some hours later) as well as their discord server. This lead to a social movement organized in social media (mainly Twitter) where people were actually buying the stocks picked by WSB not only for the action and gains but as an act of rebellion against the system that was protecting the wealthy and it got even worse. Some hours later, some of the biggest exchanges such as Robinhood, Charles Schwab, and Interactive Brokers de-listed the stocks being triggered by this movement, such as GME, AMC, NOK, BB, and more. This lead to Wall Street Bets claiming “They can control us because they control our money” followed by a call-to-action to buy some cryptos mentioned above.
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