The role of Reddit in the GameStop short squeeze

The role of Reddit in the GameStop short squeeze

We present evidence that the tone of r/wallstreetbets (WSB) discussions displayed significant predictive associations with intraday GameStop variables and that the comment distribution obeyed a power law and in fact it was 462 users whose posts most impacted GME. •We show that discussions on Redditt...

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Veröffentlicht in:Economics letters 2022-02, Vol.211, p.110249, Article 110249
Hauptverfasser: Anand, Abhinav, Pathak, Jalaj
Format: Artikel
Sprache:eng
Schlagworte:
GameStop
Law enforcement
Securities analysis
Securities markets
Short squeeze
Variables
WallStreetBets
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Zusammenfassung:We present evidence that the tone of r/wallstreetbets (WSB) discussions displayed significant predictive associations with intraday GameStop variables and that the comment distribution obeyed a power law and in fact it was 462 users whose posts most impacted GME. •We show that discussions on Redditt influence future GME financial variables.•Redditt tone impacts GME volatility, spread& volume up to 10 min in advance.•Comment distribution on Redditt displays a power law.•462 top subreddittors had the most impact on future GME variables.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2021.110249