On January 28th, 2021, the stock market was faced with unprecedented fluctuations. Stock in GameStop, an electronics retail company, rose from a steady $18 apiece, to upwards of $422 seemingly overnight. What caused this tremendous and rapid growth? Reddit users of the subreddit r/wallstreetbets discovered that Wall Street investors were “shorting” GameStop stock. This is a strategy where investors bet on the failure or decreased value of a company, making more profits as the business declines. Small sections of r/wallstreetbets began to convince other Reddit users to buy stock in GameStop to combat this and make profits themselves in the process. As more users began to purchase, the price of the stock began to increase in great proportions.

As a result, the Reddit users made tremendous sums of money while Wall Street investors and even large hedge funds found themselves hemorrhaging billions of dollars. Because the “shorting” tactic of investment has no limit on how much money can be lost if the stock begins to rise, many of these hedge funds have had to file for bankruptcy. From December to January, GameStop stock had risen by over 1700% and its value went from $2 billion to $24 billion, increasing by $10 billion in a single day.  While the rich Wall Street investors have been dealing with the massive losses, everyday people who bought GameStop stock early are being generously rewarded. Some have made millions, setting them up for the rest of their lives; others have made a few thousand, still a hefty sum of money. 

This event has not only changed the economic landscape for many individuals but also set a new precedent for the future. Although many Reddit users made good money from this overtaking, it was more symbolic in nature. The impact made by people from all over the globe coming together on a platform such as Reddit has shown the stock market that it is possible for the many to take over the mighty. They have proven that with the power of numbers and collectivity, average citizens can disrupt a system created and controlled by the ultra-wealthy.