Elon Musk is backing Reddit’s GameStop stocks ploy again—here’s why

If you haven’t turned on the news this week or aren’t involved in stocks, then you might not be aware of what is going on right now. Trading volumes in GameStop stock shares surged to a whole new level this week. Why? Well, let’s just say we can thank Elon Musk and Reddit.

Earlier this week, the Reddit thread r/WallStreetBets encouraged people to pile into GameStop’s stocks in an effort to stun Wall Street firms who were betting these stocks would fall. Then, Elon Musk soon joined in on the action, causing all of this Wall Street drama to finally unfold. Now, Musk is further explaining why he backs Reddit’s recent moves.

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Once Elon Musk caught wind of what individuals were doing on the r/WallStreetBets Reddit thread, he tweeted out a link to it. The move was seemingly in support of the individuals who were boosting GameStop’s stock shares.

Gamestonk!! https://t.co/RZtkDzAewJ

— Elon Musk (@elonmusk) January 26, 2021

As a result, many of those on Wall Street were left stunned. According to CNBC, shares of GameStop were up more than 60 percent in after-hours trading on Tuesday following Musk’s tweet. The stock ended up closing up 92.7 percent on Tuesday.

Due to the sudden spike, big bets short-sellers on Wall Street who thought the GameStop stock would fall are now facing billions of dollars in collective losses.

NBC NEWS: Short-sellers lost $14.3 billion today alone on GameStop stock, according to S3 Partners

— Josh Caplan (@joshdcaplan) January 28, 2021

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Since all of this, a lot has happened. Robinhood Markets, Inc., an American financial services company, has restricted trading in GameStop, an action that quickly caught the attention of many. U.S. Representative Alexandria Ocasio-Cortez tweeted that this action really only benefits one group of people.

“This is unacceptable. We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services Cmte, I’d support a hearing if necessary.”

This is unacceptable.

We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.

As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt

— Alexandria Ocasio-Cortez (@AOC) January 28, 2021

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Meanwhile, Musk called out the gaming messaging app Discord after they banned the Reddit group who started this whole situation. However, according to The Verge, Discord has since lifted that ban and is now helping the r/WallStreetBets team moderate its new server.

Even Discord has gone corpo …

— Elon Musk (@elonmusk) January 28, 2021

Now, Musk is further explaining why he is backing Reddit’s Gamestop stocks ploy. On Thursday, he shared a tweet saying hedge funds shouldn’t be allowed to control the financial apps that blocked people from buying any more stocks. Their attempts to make those stocks plummet so they wouldn’t lose any more money is wrong and a “scam.”

u can’t sell houses u don’t own
u can’t sell cars u don’t own
but
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons

— Elon Musk (@elonmusk) January 28, 2021

A lot of hashtags and phrases have begun trending because of all of this. #EatTheRich and #HoldTheLine are a few of the recent hashtags to grow in popularity. However, Fyre Festival is also being brought into this Wall Street situation all thanks to Ja Rule.

On Thursday, he tweeted that Robinhood limiting GameStop stock trade is a crime and that they all need to continue to hold the line. Of course, his tweets went down exactly as you’d expect. Many are reminding the internet that they probably shouldn’t take financial advice from the investment advisor of Fyre Festival.

Yo this is a fucking CRIME what @RobinhoodApp is doing DO NOT SELL!!! HOLD THE LINE… WTF 🤬

— Ja Rule (@jarule) January 28, 2021

Exactly!!! #Holdtheline https://t.co/KT0Fyrm2Ld

— Ja Rule (@jarule) January 28, 2021

Made for a great documentary so I thank him.

— Staxofbills | Devin (@staxofbills) January 28, 2021

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Signed Ja Rule, Fyre Festival organizer. https://t.co/Xk49anQPBK

— Andrew W. (@falseminus) January 28, 2021

If your business advice comes from the guy connected to the Fyre Festival … you might be investing wrong pic.twitter.com/tiK8wz3Hic

— Jeremy Ross (@JeremyAdamRoss) January 28, 2021

Hey look! It’s Fyre Festival headliner and investment advisor, Ja Rule https://t.co/MCV5Sxuy5V

— Bill Weir (@BillWeirCNN) January 28, 2021

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Senses Fail‘s Buddy Nielsen also shared his thoughts on the situation. He touches on the internet finally coming after those Wall Street billionaires who will likely get bailed out by the government in the next few days.

The internet has fucked over every industry except Wallstreet so it’s nice to see them get a little taste.

— Buddy Nielsen (@buddythechud) January 28, 2021

Watch these hedge funds get bailed out before the entertainment industry , gonna happen in literal weeks https://t.co/8ALNXVyb3C

— Buddy Nielsen (@buddythechud) January 28, 2021

As of noon PST on Thursday, Jan. 28, GameStop stocks have fallen 28 percent.

What are your reactions to a Reddit thread influencing GameStop’s stock? Let us know in the comments below.

Source: altpress.com