Haikhuu founder Allen Tran, who moderates the Facebook group Robinhood Stock Traders, describes how his group became temporarily ‘unfit’ amid the GameStop stock market.
The Texas chief prosecutor said he was launching an investigation into the GameStop market storm on Friday, accusing Wall Street of accusing ‘elites’ of spoiling the markets and corruption.
“The U.S. economy needs to be transparent, open,” Paxton tweeted Friday afternoon. “This week’s coordinated corruption by a cabal of oligarchs shows that it is not.”
He added: “I will help fix it.”
The announcement comes amid a frantic month for GameStop shares, which saw their price rises sharply as retail investors embarked on Wall Street short-selling – with much of the activity on the Robinhood trading platform.
DISCORD BAN WALLSTREET BETS IN THE MIDDLE OF GAMESTOP OPSTRA
Discord is a text and voice communication app – which has entangled itself in the controversy by banning the market through a server dedicated to WallStreetBets, a Reddit forum whose users help the viral GameStop craze.
WallStreetBets is opposed to hedge fund short sellers, which cost financial professionals billions of dollars when amateur investors raised GameStop shares last month.
Texas Gov. Greg Abbott and Attorney General Ken Paxton are holding a press conference to address a Texas federal court ruling on the immigration lawsuit by 26 states challenging President Obama. Paxton was charged on Monday with three counts of (Getty Images)
Melvin Capital, a $ 12.5 billion hedge fund under assets under management, was a major short seller of GameStop, but closed its position in the video game retailer on Tuesday. The Wall Street Journal reported that Melvin had lost 30% of the funds and that two other hedge funds, Citadel LLC and Point72 Asset Management, had invested a $ 2.75 billion ‘cash flow’ to stabilize Melvin.
When Robinhood severely restricted transactions involving GameStop shares this week, users described the move as corrupt and manipulative. Some critics have portrayed the drama as an attack by Wall Street elites on everyday investors in Main Street.
GAMESTOP STOCK doubles again with no reward in interest for amateurs
The SEC said it was monitoring events and was investigating leading lawmakers from both parties.
Discord claimed on Wednesday that it had banned the group because of ‘hateful and discriminatory content’, but WallStreetBets moderators called the move ‘unethical’.
“To be clear, we did not ban this server from financial fraud related to GameStop or other shares,” a Discord spokesman told FOX Business earlier this week. “Discord welcomes a wide range of personal financial discussions, from investment clubs and day traders to university students and professional financial advisers. We are monitoring this situation and if there are allegations of illegal activity, we will cooperate with authorities as appropriate.”
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The moderators of WallStreetBets said on Wednesday night that the community “is suffering from success and that we were the first victim.
“You know as well as I do that when you gather 250,000 people in one place, someone will say something that makes you look bad. That room was soon and the people who run it are wonderful,” wrote one of the moderators. . “Disagreement has made us dirty and I am not under the impression that they are destroying our community instead of going in with the wrench we may have needed to put things right, especially not after we have more than 1,000 server increases “It’s pretty unethical.”
Discord later said it was working with WallStreetBets leaders to moderate a new server.
FOX Business’ Paul Best contributed to this report.