Reddit traders wage battle on Wall Street

Shares of Gamestop and AMC Entertainment Holdings each more than doubled on Wednesday, forcing several hedge funds to take heavy losses due to abrupt value fluctuations caused by hundreds of anonymous small investors from Reddit’s wallstreetbets forum, sparking calls for scrutiny of anonymous stock market trading posts on social media. The short squeeze was so sharp that it sparked a 1% slide in Wall Street. The action centred around shares that have been heavily “shorted” by other market players - traditionally an area dominated by hedge funds. Regulators are likely to scrutinise the movement, caused by a breathtaking buying spree turbocharged by bullish touts about the video game retailer on Reddit and other online forums. Reddit traders have been piling into previously unloved tickers favoured by short sellers recently, driving them to record highs.