Icon: enlarge
Photo: CARLO ALLEGRI / REUTERS
After the fabulous ups and downs of the GameStop share price, not only hedge fund managers and company bosses but also the YouTuber “Roaring Kitty” had to testify before a committee of the US House of Representatives.
The list of witnesses was announced by Democratic Congressman Maxine Waters.
The list includes Keith Gill, who hides behind the pseudonym "Roaring Kitty", the head of the trading platform Robinhood, Vlad Tenev, and the heads of the hedge funds Citadel and Melvin.
You should testify next Thursday.
Gill was under the username »DeepFuckingValue« on the Internet forum Reddit in the subgroup WallStreetBets one of the activists who recommended the GameStop share for purchase.
Icon: enlarge
Financial expert Gill aka "Roaring Kitty"
Photo: source Youtube
The Financial Services Committee is investigating how the shares of the video game retail chain GameStop in particular, but also those of other companies, could be driven to dizzying heights.
Small investors had made concerted purchases to force hedge funds to cancel their bets on the decline of the GameStop price.
In doing so, they had even put these shortsellers in some trouble and caused unrest around the world.
The crypto currency Ripple has also recently seen violent price movements on the market.
The virtual hearing entitled “Game Stopped?
Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide "(translated:" Who wins and loses when short sellers, social media and small investors collide ") will be broadcast as a live stream.
The judiciary and the US government are also investigating the matter.
Robinhood and other brokers had temporarily restricted purchases of shares in the video game dealer and thus sparked outrage across party lines in the United States.
Both houses of Congress have announced hearings on what is going on.
The Texas attorney general spoke of signs of collusion between hedge funds and other parties to stave off a threat to their market dominance.
Losing bets at GameStop have cost some hedge funds dearly.
Since the beginning of the year, their losses add up to 12.5 billion dollars, according to recently published data from data provider Ortex.
Some funds even ran into existential difficulties, including Melvin Capital.
The hedge funds Point72 and Citadel had to save their partner from collapse with an injection of billions.
Icon: The mirror
fdi / Reuters
