Reddit-inspired surge in stocks such as struggling video games store and AMC dive as hedge funds close positions
Shares in GameStop plunged by 65% in early trading on Wall Street as the trading mania sparked by small investors, that sent its stock surging and cost hedge funds billions of dollars, lost momentum.
The struggling Texas-based video game store chain has been the focal point of a battle by small traders, using forums such as Reddit, to punish Wall Street hedge funds that have bet on certain stocks falling in value. GameStop shares hit a high of $470 last Thursday but slumped to $80 shortly after the market opened. They recovered to $117 by mid-session, down 48% on their opening price.