It’s War on Wall Street, and GameStop is Caught in The Crossfire!

not often that we post about the stock market here at PS5 Gamers, but when it’s this big and of all the companies involved GameStop is the one, I just need to add my two cents. I mean, I’ve been working at GameStop for almost a decade, so it’s normal for me to cover another story that is somehow part of my cover.

Reddit’s subreddit r/wallstreetbets is at war with Wall Street for a self-proclaimed meme action that, to be fair, only cost GameStop shares a few weeks ago Well, now the battle has become much bigger than we expected, I think. In addition, we are calling on other top artists such as AMC to participate in the party. There’s a lot of money at stake (who doesn’t think of hedge funds!), but what’s really going on? I took a course in stock market jargon, so let’s find out!

stock GameStopBonanza Magazine

Amongst the explanations of shorts and scramble and other terms you wouldn’t expect to see associated with the stock market, I came across this surprisingly simple explanation given by @notasdfjklx (I try to say it five times faster) :

My simple explanation $GME $AMC

– notasdfghjklx (@notasdfghjklx) 28. January 2021

The stock market has always been a playground for the wealthy, so there is something to justify ordinary people coming together to raise the price of shares and hopefully make some money. People are crying because the hedge funds that closed now have to buy back all the stocks they bet on, losing ridiculous amounts of money because they never in a million years expected the stock price to be this high.

If it had turned out in the hedge funds’ favor, the value of the shares would have fallen and they would have put the shares back into savings and kept the profits for themselves. Going short in a stock is risky, because if the price rises for an unexpected reason, you can lose a lot of money. In this case, we’re talking billions.

The term squeeze we hear refers to people pushing up the price of a stock because they know investors have time to make money in the short term. This kind of cat-and-mouse game usually only takes place between billionaires, but in the case of GameStop, two online rednecks who were trading for different reasons decided to work together.

Access to applications like Robinhood and E-Trade makes it easier to go public. Don’t worry, we’ll get to the Robin Hood fiasco soon. While some simply buy stocks themselves, the real graters here are those who place their own options by betting on the opposite side of the short. Consequently, brokers must cover shares in case a trader wants to exercise them, which means they must buy shares regardless of their price.

This all feeds itself and creates a rapidly growing demand (and high price) for GameStop stock.

Roger that. Just one question: Why is GameStop everywhere?

There are many reasons, ranging from memes to your typical blusher to the hedge fund that caused GameStop to shrink in the first place: Melvin Capital. GameStop was inactive for a while, but regained some momentum when the founder of took a stake in the company and also joined the board of directors.

Using my soft understanding of people and actions, I could also say that GameStop wanted to be a company in the broadest sense of the word, and that most people on the internet, players and meme culture are not big fans. It seems that they, the hedge fund and Wall Street as a whole form a powerful trio that can certainly be described as a stock even.

To bring us to the present (January 28, 2021), Robinhood also made headlines when they decided to limit activity on GameStop and other stocks that people push, like AMC, Blackberry and American Airlines all of which are dealing with a pandemic or have low stock values. Robindus’ blatant manipulation of the markets has drawn a lot of attention on Social Media and even government officials have spoken about the situation.

Meanwhile, Melvin Capital needed a $2.75 billion infusion because of the tightening it extracted from a short position. However, history is changing and it will be interesting to see how far this goes and what the regulatory commissions will do in the future.

The 29th. In January 2021, GameStop action rebounds by over 100% after the previous day’s insurmountable drop. It’s certainly a roller coaster ride, as both Congress and the Securities and Exchange Commission have issued statements of intent to take a closer look at the situation. The Securities and Exchange Commission has also said it will protect retail investors, so we could see applications like Robinhood punished severely for market manipulation.

Meanwhile, even Elon Musk is putting on a show. His one-word tweet led more and more people to subtext, fueling the process:


Elon Musk (@elonmusk) January 26, 2021

Now is the moment you’ve all been waiting for!

What does this have to do with the PS5?

I’ll be honest, the answer is not that much. Yet I am a simple man: If I see GameStop, I’ll write about it. My mixed feelings about the company make me want to capture their spectacular effects in the news, if only to put my finger on it.

As a player who doesn’t trade much, my opinion here may not be significant, but I would take the advice of those who recommend staying out of it and just enjoying the show. There is too much at stake and too many people will lose money they cannot afford to lose. Keep your money and spend it on the PS5. Maybe that’s the connection.

How do you see the end? Does this blatant example of total stock market volatility scare you? What is the point of the stock market anyway? These and other questions may be answered as the story unfolds. Stay tuned and let us know what you think in the comments!

Item from – Bradley Ramsey
Date of insertion – 1/29/2020

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