NEW YORK — Wall Street was contemplating big wins from the Reddit-fueled retail frenzy in stocks such as GameStop on Thursday, even though many hedge funds in its ranks were nursing losses.
Shares in GameStop, whose motto is “power to the players,” and other heavily shorted stocks such as AMC Entertainment, BlackBerry, Koss Corp, and Express Inc soared this week, as traders on Reddit and other social media platforms snapped them up.
These trades forced hedge funds “shorting” the stocks to cover their positions, costing them billions of dollars and further fuelling a rally that caught many by surprise.
But the tide started to turn on Thursday as some top Wall Street firms d…
Keep on reading: Power to the players: Wall Street levels up in Reddit rally