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Can anyone explain what's going on here to a six-years-old kid? I'm not a native English speaker and I don't know anything about trading, I'm just seeing all th

• mhh__ 6y ago
  Some funds got caught with their pants down. Some people on Reddit made some money off of it, the big boys have now taken over, but the media and online-people are trying to either say it's Reddit vs. Wall Street or some other eye catching battle. There is obviously the question of Wall Street leaning on Robinhood and Discord etc. Etc., But I have seen convincing arguments both ways so we have to wait a bit longer to really work out what the chronology is there.
• nefitty 6y ago
  Some people on Reddit found out that big investors were making bets that the company GameStop would fail. This type of bet is called shorting. The people on Reddit started betting the opposite way, which means the big investors might start losing on their shorts. The price of GameStop stock went up dramatically. Robinhood is the main app that the Redditors used because it doesn’t charge a fee to make trades. Robinhood has some legal obligations that it could no longer meet because of the amount of trading happening. They stopped people from buying GameStop, which means people could no longer bet against the big investors. Some people think Robinhood and other companies stopped buys in collusion with the big investors. I doubt that is the case, but the situation is functionally the same as if Robinhood had engaged in a conspiracy to help the big investors.
  • izietto 6y ago
    Thank you so much, this is the kind of summary I needed to understand what's going on!