Economy GameStop bubble begins to decline: sinks 80% as momentum...

GameStop bubble begins to decline: sinks 80% as momentum deflates from Reddit

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The chain’s shares fell this Tuesday to $ 74.22, 80% below the $ 483 they reached on January 28.

The GameStop bubble begins to deflate with the same force that it inflated. The shares of the video game store chain, which have risen up to 1,600% since the beginning of the year, have lost three-quarters of their accumulated value in these sessions on Tuesday at the plummet up to 80% from last week’s highs.

Specifically, the shares of the video game chain fell to 74.22 dollars this Tuesday, 80% below the 483 dollars that they reached on January 28, although they still rose more than 300 % so far this year.

The company has been the center of a bitter financial battle between several of the largest investment funds in the US and a large group of small investors organized on the social network Reddit. The former sought to profit from the collapse of the company through short bets and the latter wanted to prevent it. To do this, they orchestrated a massive purchase of shares that shot GameStop’s shares for several consecutive days, thus causing losses of billions of dollars to the aforementioned funds.

According to the financial analysis firm S3 Partners collected by Europa Press, open short positions in the stock had fallen to 53% of free float, when a few weeks ago they reached 140%.

GME’s prick this Tuesday was extended to other values ​​supported in the last few days from the Reddit forums, such as those of the chain of AMC cinemas, whose securities fell 42% today, to $ 7.70, 62% below the more than $ 20 in which they traded on January 27, while shares of BlackBerry they fell more than 17%, to just over $ 12, when last week they were trading above $ 25.

On the other hand, the United States Commodity Futures Trading Commission (CFTC) warned yesterday that it is closely monitoring the recent activity in the silver trading markets, after WallStreetBets was encouraged to try to emulate the same play with the precious metal as with GameStop.

The CFTC is closely monitoring recent activity in the silver markets, “said CFTC Acting Chairman Rostin Behnam, underlining that the Commission is maintaining contact with other regulators, as well as exchanges and stakeholders to address “any potential threats to the integrity of the silver derivatives markets,” thus remaining vigilant to monitor any attempts at fraud and manipulation.

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