The "institutional" guys tried to crush GameStop.
In that process, normally, "retail" individuals who are long and not necessarily day traders, in turn get crushed.
What this group of "retail" traders did is band together to crush the hedge fund guys (to the tune of 5 billion in loses so far).
The hedge fund guys and their allies around Wall Street and in the media screamed bloody heck and got the SEC and many brokers (i.e. robinhood) to prevent individuals from buying any more stock and in some cases causing them to sell their stock.
So 1st - hedge funds in the process of crushing the little guys. Happens all the time. Few in the "professional" class bat an eye.
2nd - little guys fought back and tried to crush the hedge funds. An emerging phenomenon.
3rd - the financial leviathan fought back and is again trying to crush the little guys.
"Wall street" and the "professionals" are now trying to figure out how to prevent the little guys from being able to manipulate a stock...just like the big guys do a ALL THE TIME.
It could be looked at in this way: What has happened here is very similar to what happened with Trump. Politically, Trump was the little guys answer to the fed, whereas Economically, this GameStop episode is the little guys answer to the hedge funds.
What happens next will be interesting...
It was so good, I actually recorded it (something I very rarely, if ever, do for the daytime financial shows).
Unfortunately, NBC is pulling the mirrors just as fast as they are being put out there. https://digg.com/video/chamath-palihapitiya-roasts-cnbc-anchor-gamestop-stocks
The full interview is behind their paywall. They do offer a 7 day free trial that a newly created "extra" email account could be used to view it: https://www.cnbc.com/video/2021/01/27/watch-cnbcs-full-interview-with-chamath-palihapitiya-on-gamestop-and-reddit-fueled-surge.html
The guy is left of center, but he took the financial establishment to the woodshed in that round. 2008 market crash, people loosing their jobs and homes, "too big to fail" people getting bailed out with taxpayer money, to now. Pretty epic.
What happened with Trump is that step 3 required them break all known laws that cover the situation and expect the regulatory bodies to look the other way.
Which is apparently what is happening today with GameStop.
-PJ
Very much appreciated.