The war between hedge funds and retail investors over shares ofGameStophas one logical conclusion, according to executives and traders of a major Wall Street firm.
Shares of GameStop, the video game retailer, have climbed more than 900% since the start of the year after members of the Reddit communityWallStreetBetsbanded together in an effort to push the stock higher.
The campaign pushed a stock worth $19 at the start of the year to as high as $482.85 on Thursday. Gains by retail investors have come at theexpenseof sophisticated investors like Melvin Capital and Citron Research, which were forced to close out their short positions as the stock rose in what’s known as a short squeeze.