GameStop’s stock price has been on a downward trajectory this week. After a rollercoaster ride last week and an unprecedented rise the week before, it looks like GameStop’s stock price might finally be settling back down back to Earth. GameStop is trading at $110 as of the time of this writing, down from closing yesterday at $225.
A large reason for this is the online trading platform Robinhood restricting the sale of GameStop stock to just one per order. While larger firms can buy and sell as many GameStop stocks as they want, so-called “retail” investors can only purchase one at a time. This limits the upward pressure on a stock’s price while providing unlimited downward pressure.
Another reason for GME’s fall: bots.
Multiple posts on the WallStreetBets subreddit, the center of the movement to drive up GameStop’s stock price in order to strike it rich while simultaneously sticking it to established Wall Street hedge funds, are noting increased bot activity in recent days. These bots are doing anything they can to direct attention away from GameStop stock, from offering alternative stocks to repeatedly posting comments suggesting that owners sell their GameStop shares.
“We’ve detected a large amount of bot activity in the subreddit,” the WallStreetBets moderator team told CBS in an official statement. “We can’t speak to the source, but we have seen our automoderator block a lot of posts recently that were very similar in content.”
Research firm Epsilon Theory’s Ben Hunt confirmed the coordinated bot attack on Twitter, noting that the WallStreetBets subreddit had been subject to 30,000 posts in an hour period where 97% were removed.
The ongoing GameStop stock price saga has captured the attention of the world. Politicians are talking about it on Twitch, the White House is monitoring the situation, and there are even Hollywood movie adaptations in the works as we speak.
Redditors are still hopeful that a massive “short squeeze” will eventually cause GameStop’s stock price to skyrocket once more, but there’s no telling when–or if–that might happen.
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