The U.S. stock market got off to a turbulent start in 2021 when a Reddit group of casual traders suddenly drove up stock value for struggling video game retailer GameStop. Seemingly driven by both irony and a resentment toward the balance of power on Wall Street (which is traditionally dominated by large hedge funds), the Redditors dramatically upset trading norms, forcing at least one hedge fund to seek a bailout and the popular trading app Robinhood to restrict trading on GameStop’s stock. This case covers the general details of the frenzy and asks students to discuss potential long-term consequences.
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