Reddit’s forum WallStreetBets initiated ongoing stock market frenzy

Billions of dollars in losses for hedge fund companies

The creator of the Reddit forum at the center of the ongoing stock market frenzy called the recent coordinated strategy to pump ailing stocks like GameStop and AMC a “train wreck.” Jaime Rogozinski, 39, who established Reddit’s r/WallStreetBets in 2012 as a platform to discuss unconventional investing strategies, expressed unease over the forum’s astronomical rise in influence in an interview with The Wall Street Journal.

“It’s a little like watching one of those horror films where you can see the bad guy slowly going up the stairs,” Rogozinski told the newspaper. “You see this train wreck happening in real time.”

WallStreetBets has played a prominent role boosting GameStop, and other similar ebbing companies, playing host to many of the amateur investors driving the stock prices up. The move has resulted in billions of dollars in losses for hedge fund companies that shorted those same businesses.

https://nypost.com/

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