Definition of WallStreetBets

"WallStreetBets" refers to a community on the site Reddit.com called WallStreetBets.

Here is the link:

https://www.reddit.com/r/wallstreetbets

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WallStreetBets is a community of over 2 million people (and counting) that mainly consists of retail traders with smaller accounts.

The community is well-known for their Wall Street "memes" as well as their "YOLO" (You Only Live Once) trade screenshots. An example of a YOLO trade might be somebody putting their entire account into Out of the Money call options on a single stock.

WallStreetBets hit the mainstream media in January of 2021 after the massive short squeeze/gamma squeeze of Gamestop.

Tens of thousands (and possibly more) of the community's traders started buying up shares and call options of Gamestop, which is a gaming company that was once on the brink of insolvency.

There were some massive short positions in the stock, as the total short interest totalled far more than the shares outstanding.

This feverish buying of the Gamestop call options resulted in a gamma squeeze, which in terms resulted in a massive short squeeze as short-sellers scrambled to buy back shares.

The avalanche of buying nearly ended prominent hedge fund Melvin Capital, which was caught massively short. Melvin Capital needed an infusion of cash from Citadel and Point72 in order to survive, as they likely would have gone bust otherwise.

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The power of the WallStreetBets community came about due to the explosion of interest in trading, mainly from people aged 20-39. This explosion of interest came as a direct result of a long-running bull market, the creation of zero commission brokerages and a reluctance to invest the traditional way.

Wall Street now has a problem on their hands, as they no longer control the narrative in situations like Gamestop. After years of running and controlling the show, Wall Street is now at the mercy of YOLO'ing traders on Reddit.

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Davemanuel.com Articles That Mention WallStreetBets:

WallStreetBets Targets RKT (Rocket Companies, Inc.); Stock Soars

"Roaring Kitty" Hit With Class Action Lawsuit in Massachusetts

Robinhood Sees Surge in New Accounts, Downloads

Will Robinhood Go Bankrupt This Year? Bookmaker Puts Odds at Better Than 50%

Chamath Palihapitiya Helps To Keep Gamestop Squeeze Going By Completing Large Options Purchase