The New Paper

January 28, 2021

Short squeezes continue

The share prices of AMC and GameStop increased by 301% and 135%, respectively, yesterday as retail investors continued to bet against short positions taken by institutional investors. The so-called “short-squeezes” were initially popularized in the Reddit forum “r/WallStreetBets” (and subsequently gained traction on the messaging platform Discord), but have since gained widespread attention from the media, investors, high-profile business executives, and regulators. The ongoing volatility prompted several brokerage firms (including Robinhood, TD Ameritrade, and Schwab) to restrict certain transactions related to AMC, GameStop, and several other companies (including Blackberry, Nokia, and Express).

Extra: The SEC issued a statement yesterday saying that it is “actively monitoring” the ongoing volatility in options and equities markets, but did not name any specific companies and did not provide additional details.

More context: Here’s an explainer on shorting stocks, short squeezes, and the ongoing situation this week.

This story is from the January 28, 2021 edition of The New Paper – a clear, concise daily briefing that makes fact-first news easy to consume. Try it today.