May 18, 2021

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Reddit group WallStreetBets behind massive GameStop, AMC run-ups goes private, invitation required

2 min read

Rafael Henrique | SOPA Images | LightRocket via Getty Images

“Wallstreetbets” Reddit chat room, where retail investors marshal against short sellers, went private on Wednesday evening, limiting access to outsiders.

“You must be invited to visit this community,” the page stated. The forum’s members topped three million as of Wednesday.

The community gathered an army of rookie day traders who go after heavily shorted stocks, pushing share prices higher and squeezing out short-selling hedge funds. GameStop, a popular target in “wallstreetbets,” saw its shares soaring more than 400% this week alone. The brick-and-mortar video game retailer has skyrocketed a whopping 1,700% as retail traders continued to encourage each other to pile on.

AMC Entertainment, another hot topic in the chat room, surged more than 300% Wednesday alone, experiencing its highest volume ever.

A Reddit spokesperson said “wallstreetbets” moderators set the community to private.

“Reddit’s site-wide policies prohibit posting illegal content or soliciting or facilitating illegal transaction,” the spokesperson said. “We will review and cooperate with valid law enforcement investigations or actions as needed.”

Social platform Discord banned the “wallstreetbets” chat room on Wednesday.

“The WallStreetBets server has been on our Trust & Safety team’s radar for some time due to occasional content that violates our Community Guidelines, including hate speech, glorifying violence, and spreading misinformation,” a Discord spokesperson said in a statement.

“Over the past few months, we have issued multiple warnings to the server admin.Today, we decided to remove the server and its owner from Discord for continuing to allow hateful and discriminatory content after repeated warnings,” the spokesperson added.

This is breaking news. Please check back for updates.

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2021-01-27 18:55:00


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