Tuesday, July 27, 2021

Wallstreetbets and GameStop saga set for Hollywood treatment in new film


The r/Wallstreetbets saga which noticed a bunch of Redditors be a part of forces to extract billions from Wall Road hedge funds is ready to be become a film.

As reported by Deadline on Jan. 31, a newly proposed e book by The Social Community writer, Ben Mezrich, was topic to a bidding struggle between main Hollywood studios, with Metro-Goldwyn-Mayer profitable out ultimately.

The undertaking will reunite Mezrich with MGM producer Michael DeLuca, who additionally produced the Academy-Award profitable movie The Social Community, which informed the story of the rise of Fb founder Mark Zuckerberg.

No particulars have but been launched concerning the form the movie will take, however it’s anticipated to deal with the latest “quick squeeze” orchestrated by members of the r/Wallstreetbets subreddit.

The movie will maybe profit from the presence of main cryptocurrency figures, Cameron and Tyler Winklevoss — founders and operators of the Gemini alternate. The Winklevoss brothers will be a part of the undertaking as government producers below their Winklevoss Footage manufacturing firm.

After noticing that main hedge funds have been shorting GameStop (GME) shares, the Redditors noticed a chief alternative to make earnings by collectively betting the opposite approach.

This resulted within the worth of GME shares skyrocketing over 2,600% in January alone, with the knock-on impact of inflicting Wall Road shorters to lose tens of billions of {dollars}. One hedge fund, Citadel’s Melvin Capital, reported 53% losses in January and has since been pressured to restructure its funding portfolio to make sure faster exit methods sooner or later.

The sudden explosion of GameStop inventory was all of the extra shocking provided that most individuals thought-about it to be a lifeless model; a sufferer of the streaming market which has successfully transferred media consumption from the TV to the web.

Much more seemingly lifeless corporations have been resurrected by Reddit’s merry band of merchants, together with AMC (up 905% in January), in addition to Nokia, Blackberry, and Mattress, Tub and Past.

Within the aftermath of the quick squeeze, many buying and selling apps suspended customers from shopping for any extra of the shares in query. The Robinhood app got here below notably heavy hearth after observers noticed that 35% of its income got here from Citadel Securities — a sister firm of the identical hedge fund which misplaced billions of {dollars}.

This prompted outrage from all corners of the web and past. Politicians from either side of the spectrum have since voiced their considerations concerning the actions of RobinHood, with a whole lot of hundreds of viewers tuning in to look at Alexandra Ocasio-Cortez discuss the doable illegality of the agency’s actions. The US Securities and Trade Fee has since said that it will likely be looking into Robinhood’s dealing with of the GameStop drama, fearing that such actions will undermine market confidence.