« These small and unsophisticated investors are probably going to get hurt by this,” one state securities regulator has warned, as some stocks begin to reverse gains.
Thousands of at-home traders, many perched on Reddit boards, are pouring into a slew of heavily shorted and « fundamentally hated » stocks Wednesday in an effort to squeeze money out of the short bets placed by Wall Street’s elite–and it’s not just GameStop and AMC; here are the stocks nabbing mind-blowing gains as regulators start to sound an alarm on the frenzy among retail traders. « The days-long surge in GameStop and others is eroding market confidence and creating some positioning-driven dislocation, » Vital Knowledge Media Founder Adam Crisafulli noted Wednesday, adding that it’s « not a coincidence that some of the most popular longs have been pummeled » alongside the surge in stocks like GameStop.
