The Home Financial Services Committee holds a virtual hearing Feb. 18 as part of its investigation into the coordinated effort of Reddit’s stock trading community to raise the price of GameStop shares as a big middle finger for hedge fund managers.
The testimonial list contains some key players involved the GameStonks saga, including Robinhood co-CEO Vlad Tenev, Reddit CEO and co-founder Steve Huffman, Melvin Capital CEO Gabriel Plotkin, and Keith Gill (aka Roaring Kitty), a Reddit and YouTuber user who allegedly helped kick off the buying frenzy, per a press release on Friday of the chair of the House Financial Services, chair Maxine Waters. Additional witnesses may still be named, the press release said.
Last month, smaller investors on the WallStreetBets subreddit teamed up to partially buy up GameStop shares to lift hedge funds that made significant bets against the beleagured game retailer. Their plan worked and the value of GameStop’s inventory shot in height by at least 500% while short sellers like Melvin billions have blossomed in estimated losses. According to the New York Times, Gill played a key role in launching the campaign by regularly tweeting and making videos about his investment in GameStop shares. At one point, his the original investment of $ 53,000 in 2019 is believed to be worth about $ 48 million.
Gill and his fellow Reddit users flocked to the free online trading platform Robinhood to buy GameStop shares before viewing other looting companies that favor WallStreetBets. Robinhood stares down various lawsuits and allegations of stock market manipulation after it suddenly blocked users from buying so-called “YOLO shares” during the height of the stock market frenzy on social media.
In JanuaryWaters said the House’s trial will examine recent activity surrounding GameStop (GME) shares and other affected stocks, focusing on short selling, online trading platforms, gamification and their systemic impact on our capital markets and retail investors. . ‘
G / O Media can get a commission
The Senate Committee on Banking also announced plans to hold a hearing “on the current state of the stock market” following the GameStonks saga. You can catch the House Trial directly on his website starts at 12 noon ET Feb. 18.