What Has Happened With GameStop Stock?

GameStop stock has been the focus of market attention since January 2021. It began when members of the Reddit message board Wall Street Bets (WSB) noticed an opportunity to drive up GameStop’s stock after hedge funds took short positions, expecting the company’s share price would drop. WSB members worked together to increase the company’s stock dramatically, prompting other investors to join. The surge in buying and subsequent surge in value has become known as a “short squeeze.” The effects of this action have left traders and regulators wondering what has happened and what can be done about it. In response to the sudden volatility, Robinhood temporarily restricted trading on some stocks including GameStop Corp., drawing criticism from many who felt they were being unfairly targeted. To further investigate this situation, The House Financial Services Committee has called two CEOs to testify: Vlad Tenev of Robinhood Markets Inc and Steve Huffman of Reddit Inc., on February 18th, 2021. This hearing could provide insight into why GameStop’s stock surged so rapidly and whether regulation is needed in such activities related to Wall Street Bets activities.

Overview of the GameStop Stock

In early 2021, the interest and value of GameStop shares rocketed exponentially due to activities on Wall Street. The stock price rise was mainly due to activity on hedge funds, Reddit, and Robinhood. As a result, the CEOs of Robinhood and Reddit will testify at a congressional hearing. Let’s look at the story of GameStop’s stock and what has been happening.

What Happened With GameStop Stock?

GameStop is a renowned retailer of physical video games and gaming gear. At the beginning of 2021, its share price was US$18.84 which slowly rose dramatically in January, due to speculation on Reddit’s WallStreetBets forum. Many people who used the trading app Robinhood invested in GameStop’s stock, causing a sudden surge that eventually caused it to rise over US$400 during the same month. This surge was accompanied by severe volatility when other investors sold off their stocks at huge profits or losses since the risk of owning such volatile stocks increased simultaneously. These events triggered heavy media coverage and attracted attention from financial regulators.

In February 2021, the CEOs of Robinhood and Reddit were called to testify before Congress about this sudden increase in GameStop shares and whether or not there were any unethical practices at play. Members of Congress questioned the CEOs regarding how these events could have happened given that both companies are under more scrutiny due to alleged market manipulation by individual investors on their platforms. The hearing also prompted important conversations about how to respond to these situations in future, such as increasing scrutiny for short-sellers and improving stock regulations for individual investors, among others topics relevant for a better regulation on capital markets involving retail investors like Robinhood.

house keith gamestop februarymoonengadget tenev reddit

How Did Robinhood and Reddit CEOs Become Involved?

The trading frenzy surrounding GameStop stock has led to unprecedented scrutiny of Wall Street’s influence and the involvement of government officials. The sudden price surge was sparked by an influx of public support from individual investors organised in a Reddit group, and buying interest was further enabled by the investment app Robinhood. In response to the events that followed, members of Congress sought insight into the situation involving some parties. This included CEOs from Reddit and Robinhood, who were asked to testify before two House Financial Services committees on February 18th 2021.

Vladimir Tenev, the CEO of Robinhood Financial, acknowledged that it had received pressure from a variety of clearinghouses to put restrictions on trading GameStop stocks and other risky instruments in place. However, he also noted that it had already raised more financing at this stage than during its five-year history. Meanwhile, Reddit co-founder and CEO Steve Huffman stressed that its platforms are not designed for stock trading advice or speculation but rather for “sharing ideas around investing” online. He further noted that it is up to users to decide how much risk they want to take with their investments: “We cannot control market behaviour, we can only provide transparency around what is happening.”

robinhood gamestop februarymoonengadget vlad tenev reddit

The Robinhood-Reddit Controversy

The GameStop stock market controversy has been drawing attention from all over the world. It revolves around the decisions made by the CEOs of Robinhood and Reddit, who are now set to testify at a congressional hearing about their roles in the unusual rise in GameStop’s stock prices. In this article, we will look at the timeline of the Robinhood-Reddit controversy and the implications for both companies.

What is The Controversy Surrounding Robinhood and Reddit?

The controversy surrounding Robinhood and Reddit has been the talk of the corporate world ever since GameStop’s stock began skyrocketing in January 2021. This historic surge has prompted widespread investigations into the role played by Robinhood, a no-fee trading platform, and Reddit, a discussion blog website. In addition, Reddit was charged with facilitating communication between investors in its Wall Street Bets section (WSB), which revealed potential trades made by large short sellers such as Melvin Capital. The overheated penny stock market trades caused panic among large financial institutions and saw both Robinhood and Reddit come under fire for allegedly facilitating market manipulation. The U.S Securities Exchange Commission(SEC) launched an investigation into GameStop’s meteoric rise. At the same time, actions against the two companies included multiple class action lawsuits alleging negligence in allowing retail investors to continue trading stocks at artificial prices, resulting in unforeseen losses.

In testimony to Congress on 18th February 2021, SEC chairman Jay Clayton said, “We are examining whether trading platforms should limit certain activities by traders on their platforms during times of significant costs”. Members of the House Financial Services Committee and Senate Banking Committee have called CEOs from Robinhood, Citadel LLC (a hedge fund with a stake in Melvin Capital) and Reddit to answer members’ questions before making their recommendations. These developments have drawn attention to previously obscure practices such as ‘short selling’ commonly employed by institutional traders, sparking debates about offering better protections for ordinary and inexperienced investors from malicious intent or foul play such as short squeezes or pump-and-dump schemes.

gill gamestop februarymoonengadget ceo vlad reddit

What Role did the CEOs of Robinhood and Reddit Play in the GameStop Stock Surge?

The explosive rise in the stock price of GameStop, a struggling brick and mortar video game retailer, earlier this year had the world transfixed on what has turned out to be one of the most extraordinary trading stories of all time. It has captured public attention because it brought to light how two related groups of stakeholders greatly affected its share price movements. On one side were individual investors — aka ‘retail traders’ — on Reddit, a social networking site. They coalesced around a subreddit page devoted to discussing GameStop’s stock. They attempted to drive its prices higher to short squeeze professional Wall Street investors that had bet against it.

On the other side was Robinhood, which many of these retail traders used as an online brokerage service; and Reddit, whose subsidiary connects advertisers with dynamic ad inventory. Given their prominent roles in these events, both CEOs have agreed to testify at the upcoming hearing before Congress conducted by the House Committee on Financial Services in February 2021. The CEOs will likely be asked about user safety on their platforms, potential conflicts of interest between them and professional Wall Street investors and brokerages, as well as measures taken or planned for preventing similar episodes from occurring in future.

Congressional Hearing

A congressional hearing is scheduled to occur regarding the turmoil surrounding GameStop stock. The CEOs of Robinhood and Reddit will be testifying to the hearing. This hearing could help us better understand the trading chaos that has occurred with GameStop shares, and how the situation could have been averted. Let’s take a closer look at what is expected to happen in the hearing.

What is The Purpose of the Congressional Hearing?

The Congressional hearing aims to investigate issues related to the recent surge in GameStop stock. Specifically, representatives from the House Financial Services Committee will question Robinhood and Reddit’s CEOs’ involvement in facilitating and managing the trading platform. This hearing will address two main questions: 1) whether or not Robinhood acted inappropriately by halting trading of GameStop stocks; and 2) what lessons can be learned from this incident to help prevent similar market-manipulation attempts in the future. Furthermore, during this process, representatives will also seek to clarify what roles Reddit and other social media played in facilitating this surge. Finally, through a bipartisan lens, committee members will look towards determining whether there was an abuse of power or market manipulation that took place during this incident.

Robinhood and Reddit CEOs will Testify at GameStop Hearing

The Robinhood and Reddit CEOs are scheduled to testify about their involvement with the recent volatility of GameStop stock in a congressional hearing on Thursday, February 18th. During the hearing, the chief executives from both companies—Vlad Tenev of Robinhood and Steve Huffman of Reddit—will provide more details about their respective roles in helping investors take control of GameStop stocks. The hearing follows an unexpected surge in stock prices of the American video game retailer between January 22nd and January 28th. The sharp rise was attributed to increased trading activity on Robinhood and discussions by users on Reddit’s WallStreetBets page. This was especially concerning to financial experts as it seemed like there was potential for irregularities, such as market manipulation, which could have damaged other investors.

As such, the CEOs are being asked to provide testimony regarding their decision-making leading up to this event. Specifically they will be asked why they allowed certain trades on their companies’ platforms, how customers were protected from sudden stock price fluctuations, and whether there was any insider trading or other malpractices within either platform. The CEOs will also be expected to discuss what steps both companies are taking to ensure that similar events do not occur in the future and how my inform regulators can better monitor online trading activities.


After a brief stock market frenzy caused by a spike in GameStop shares due to interest from retail investors, the attention has now shifted to an upcoming congressional hearing. Following the incident, several prominent parties have been called upon to testify and provide insight into the state of the markets. In addition, CEOs from Robinhood and Reddit, who were heavily involved in the phenomenon, will appear at this hearing. They will provide their perspectives on how and why GameStop stock skyrocketed and its potential impact on market traders and regulation. It remains to be seen what effect this hearing will ultimately have on markets or regulations but we can likely assume that some kind of policy change is imminent due to these events.

tags = reddit app, robinhood app, social news website, social news, legal trial, gamestop trial, house keith gill gamestop februarymoonengadget reddit, robinhood keith gill gamestop februarymoonengadget reddit, robinhood keith gamestop februarymoonengadget vlad reddit, house keith gill februarymoonengadget ceo reddit, house robinhood gill februarymoonengadget ceo reddit, robinhood and reddit ceo, testify at gamestop hearing, virtual hearing, robinhood ceo, reddit ceo, social discussion website