WallStreetBets Causes Major Wall Street Mutual Funds to Lose $5 Billion.
This was a particularly turbulent week on Wall Street, as a group of members of the well-known platform Reddit devoted itself to buying shares in companies such as Nokia, Blackberry or GameStop, to the detriment of a number of speculative mutual funds such as Melvin. Capital city.
The historic trolling of a Reddit subforum on Wall Street’s big mutual funds
How perro we read in Nokiamob for a few days the price of Nokia shares have doubled on the New York Depósito Exchange from around 4 euros per share to over 7 euros per share.
It’s all caused by him Reddit subforum called WallStreetBets dedicated to buying shares in declining companies such as Nokia itself, Blackberry or GameStop, among others. The reason for this maneuver was no other Punish Wall Street hedge funds who wanted to profit from the collapse of these companies by betting against them.
As a result of this action, the major hedge funds suffered losses of more than $5 billion and were the hardest hit. Melvin Capital, which needs a $2,750 million bailout to avoid bankruptcy.
These members have already made history by showing what a popular network perro do bring the big hedge funds on Wall Street to their knees thereby losing millions of dollars.