You may have heard—or read incessantly—wacky things happened in the stock market, particularly when it comes to GameStop, a publicly-traded video game retail seller.
In case you're new to it all—or hopelessly confused—the Associated Presspublished a nice crash course. Simply put, a bunch of people realized several billionaire hedge fund investors have purchased A LOT of GameStop stock over the last few years as the company has continuously struggled to be profitable.
Those investors were in a "short" position. They bought shares of the low-value stock and sold those, but with the requirement to buy them back, hoping to cash in if the stock did become valuable.
It's like betting on who one thinks will lose.
But recently, a large group of people on Reddit realized if they all banded together and bought the stock, the wealthy hedge-fund investors would be forced to buy the stock back, which would increase the stock's value, cause more people to buy the stock, and then force the investors to buy even more stock back.
That's exactly what happened.
GameStop's stock value has raised almost 1000% in just a few days. Redditors had initiated one of the biggest troll feedback loops we've ever seen and made a bunch of money doing it.
And although many have championed that ploy as a justified middle finger to Wall Street insiders of the 1%, some people are still critical of the Redditors behind the big explosion.
Scott Galloway, a Marketing Professor at the NYU Stern School of Business recently stereotyped all the Reddit stock market enthusiasts as nothing more than a cadre of sexless nerds.
But Twitter was not impressed with that argument at all.
They lashed back at Galloway, criticizing not only his take on the Wall Street situation itself, but also gender.
And even logic in general.
As similar dynamics play out with other typically low value stocks, only time will tell what other wild takes on the issue will surface.