Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230679
Authors: 
Lyócsa, Štefan
Baumöhl, Eduard
Vŷrost, Tomáš
Year of Publication: 
2021
Abstract: 
We explore the 2020 and early 2021 price variation of four stocks: GameStop, AMC Entertainment Holdings, Blackberry and Nokia. The four stocks were subject to a decentralized short squeeze that exploited the short positions of institutional investors. This investor movement was likely initiated by retail investors concentrated mostly around the subreddit r/WallStreetBets (WSB). We demonstrate that part of the next day's price variation can be explained by an increase in activity on the WSB subreddit relative to Google searches (terms related to the event). We discuss implications for future research.
Subjects: 
GameStop
WallStreetBets
Reddit
short squeeze
volatility
JEL: 
G10
G17
C53
G24
Document Type: 
Working Paper

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