According to an analysis by JP Morgan, institutional investors may have been behind much of the dramatic rise in the share price. In the meantime, evidence has emerged that small investors were not the largest buyers of GameStop and other hot companies. Federal prosecutors have begun an investigation, according to the Wall Street Journal, and the Securities and Exchange Commission, the US’s top financial watchdog, is reportedly combing through social media posts for signs of potential fraud. The hearing will not be the last inquiry that the executives at the center of the controversy will face. “I saw someone on Twitter describe it as a Rorschach test for financial regulators,” he added. “These are huge investor protection questions. “What would have happened if Robinhood had failed? What would have been the knock-on effects for financial markets?” he asked. More broadly, he said, GameStop had highlighted many crucial issues for regulators, including the role and regulation of hedge funds, whether or how Wall Street is using social media to drive investment strategy, the “gamification” of investing by trading apps and the economic incentives at play for the trading platforms. Gelzinis said there were still questions about the timeline of events. Gregg Gelzinis, associate director for economic policy at the Center for American Progress, said: “The GameStop drama raised quite a few public policy questions but first it’s important for members of Congress to understand how events played out.” The hearing marks the first time the major players in the GameStop controversy have all been forced to publicly reckon with the anger the episode provoked among small investors and across the political spectrum. Keith Gill, a trader variously known online as Roaring Kitty and DeepFuckingValue and a longtime GameStop booster. Ken Griffin, billionaire CEO of Citadel, an investment firm that executes Robinhood clients’ trades and also helped to bail out Melvin. Gabe Plotkin, founder of the Melvin Capital Management hedge fund, which was forced into a rescue after retail traders crushed its bets against GameStop. Ocasio-Cortez sits on the bipartisan financial services committee. Let them go down in lawsuits and loss of customer base,” said another recent post with more than 7,000 upvotes.Fully agree. Since then, a number of threads on social media forums have called for users to boycott the platform entirely. Its handling of the frenzy, marred with glitches and followed by trading restrictions, attracted the wrath of many of its users and U.S. The company came under scrutiny after this year’s trading frenzy in the so-called meme stocks such as GameStop. Robinhood, which has reserved shares in the IPO for retail investors, declined to comment. “Just ignore the Robinhood IPO entirely,” said a post on the r/Superstonk subreddit, which also advised traders to transfer out to Fidelity’s trading platform. Many individual investors are planning to shun the stock market debut, and several posts in recent days urging users to not buy into the IPO have received thousands of upvotes, discussions in online forums on Reddit showed. Online brokerage Robinhood, which helped enable the “meme stock” frenzy earlier this year and later attracted flak for its handling of the trading mania, is facing pushback on social media forums against its initial public offering. Gensler all wet with overregulation would sink ‘meme’ markets Trump SPAC appears to be hurting ‘meme stocks’ - but boosting Robinhood Robinhood stock drops after hackers stole info on 7 million usersīitcoin tumbles amid filing for ETF that would bet against the crypto
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