A Reddit trader, who claimed to have made tens of millions of dollars leading an army of amateur investors to snatch up GameStop stocks – a campaign framed as pitting Main Street against Wall Street – lost $ 13 million on Tuesday as stocks struggled..
Keith Gill, who goes by the name “DeepF *** ingValue” on Reddit and “Roaring Kitty” on YouTube, revealed in a post on WallStreetBets Discussion Board That his GameStop holdings are down to $ 7.6 million. This was down from nearly $ 21 million the day before and up to $ 50 million from last week, when GameStop stocks peaked at $ 483 per share.
On Tuesday, Jill tweeted a picture of a cat with a shocked look raising its paw across its face.
Jill still appears to be in poor shape with his GameStop investment. The Mediation statement That ex-financial advisor MassMutual posted Tuesday night on Reddit showed a cash balance of nearly $ 13 million. He publicly revealed for the first time that he was buying stock on GameStop in mid-2019. At the time, the stock was trading at just over $ 4 a share, while stock options cost around $ 50,000.
The many ordinary investors who flocked to GameStop stocks and encouraged each other on the WallStreetBets Reddit forum are unlikely to make such huge profits. GameStop shares rose slightly on Wednesday to just over $ 93 as of midday. But the retailer’s stock price has fallen in the last week, losing more than 80% of its value and wiping nearly $ 30 billion from GameStop investor accounts.
US Treasury Secretary Janet Yellen will meet with other top regulators later this week to discuss trade volatility on GameStop, as well as stocks of so-called “meme stocks” and evenAll of them seem to have fallen into the midst of the recent trading wave fueled by social media.
Shares of movie chain AMC Entertainment also rebounded slightly on Wednesday, reaching nearly $ 8.50, after falling 40% on Tuesday. Shares of BlackBerry, the former mobile device maker, another stock much mentioned on WallStreetBets, rose just 14 cents on Wednesday to just under $ 12. Shares of that company were as high as $ 28 last week.
The stock price action comes amid mounting evidence that some hedge funds are playing on both sides of the GameStop drama. Tuesday, Reported by Bloomberg That Mudrick Capital, a $ 3 billion hedge fund, made nearly $ 200 million betting on shares of AMC and GameStop higher last month. It was previously reported that a number of hedge funds were short selling or betting on GameStop and other stocks, contributing to the surge in those companies’ shares.
There are also concerns that the discussion on WallStreetBets could be disrupted by bots. Reported by CBS MoneyWatch On Monday, moderators on the discussion board recently discovered a “significant amount” of bot activity in the stock recommendation content posted to its group.