Budget 2023Budget 2023


  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
Open for all to watch : Nifty Banker 3.0 | Watch Day 12 Session today by Ashok Devanampriya at 8pm.
Budget 2023
Budget 2023

Can GameStop type forum in India influence retail investors’ behaviour?

Regulators in India should take note of the GameStop saga and keep a strict vigil on social media to avoid something like this happening in Indian markets.

January 29, 2021 / 08:49 AM IST
Source: Reuters

Source: Reuters

Atish Matlawala

What has happened in GameStop is something really amazing and has never happened before. Reddit’s WallStreetBets forum which is a group of 3 million day traders gathered and conspired to take long positions in GameSpot which made hedge funds to square off their short positions.

To put things in perspective, short-sellers in GameStop lost $ 5 billion in mark-to-market losses in the month of January, and on Tuesday alone they made a loss of $867 million as the stock rallied 95 percent in one single session.

Still, data from the exchanges suggest that older shorts are covering their position due to large mark-to-market losses, new short sellers are looking to initiate new short positions.