Since Feb. 19, the U.S. House of Representatives has begun its hearing to discuss the recent drastic changes in the market revolving around GameStop stock. CEOs of Reddit, the CEO of Robinhood and owners of hedge funds Citadel and Melvin Capital are some of those who have testified or are testifying at this hearing. The hearing aims to investigate market manipulation, and there should be heavy pressure on hedge funds for their role in not just in the initial GME short selling but what happened afterward as well.Â
The situation with GMEâs surge in late January was being planned as far back as September, 2020. Users on the subreddit r/Wallstreetbets found out that Citadel, a major hedge fund, had short positions in GameStop stock. âYou know citadel, the MM that took all our money today?â an r/Wallstreetbets user said back in September while laying out plans and predictions for the short squeeze. âWell now we finally wonât be at the mercy of the MMs.âÂ