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Retail investors in Europe are increasingly challenging hedge funds, mirroring the 'meme stock' phenomenon that gained traction in the U.S. in early 2021. These traders, often coordinating their efforts on platforms like Reddit, have propelled gains in stocks such as Germany's Hensoldt and France's Eutelsat. The trend highlights a growing movement among retail investors to engage in short squeezes, which may be facilitated by more favorable disclosure rules on short positions in Europe. This comes in the wake of the GameStop saga, where retail traders countered hedge funds that had shorted 140% of available shares, resulting in substantial losses for those funds.
Retail investors take on hedge funds in Europe’s answer to ‘meme stock’ mania https://t.co/53mITyV1XF Can short squeezing be done in Europe? Yes, and it is easier because of disclosure rules on short positions over 0.5%. Investors on Reddit take on the shorts.
Retail investors take on hedge funds in Europe’s answer to ‘meme stock’ mania https://t.co/9hAGzn1L6D via @ft
In January 2021, Wall Street tried to bankrupt GameStop. They shorted 140% of available shares and stood to make billions. But instead of watching another company die... Reddit traders said "not this time." Here's how internet culture cost hedge funds $20B: https://t.co/vbzFWvp0ZK
