After all of the hurried, fervorous buying of GameStop and AMC shorts, the Redditors have finally given it a rest.
The aftermath of a well-played bet against hedge-funds amounted to cash in the pockets of the novice investors, derailing the hedge-fund game as it was usually played.
While the underlying cause of why the Redditor’s executed a short was clear, and why RobinHood prevented an even bigger bubble from bursting, what is not clear is what the next move is for the herd of new-wave traders.
The tight restrictions RobinHood had placed on traders that lasted over the span over a few days gave way to a tirade of tweets as well as a surge of posts to the popular subreddit r/wallstreetbets- frustrations visible even through the slurry of expletives and emojis, as well as several inquiries directed at RobinHood CEO Vlad Tenev from CEO of Tesla (and celebrity), Elon Musk.
In the case of GameStop, the temporary hold on trading did prove to be a benefit- the volatility aspect had decreased, and as quietly as the short happened, it went away with almost no trace.
So this begs, the question- where are the Redditors now?
Going back to the power of Twitter and the influence of Elon Musk, the patrons of subreddit wallstreetbets have set their sights on a new squeeze: the cryptocurrency doubling as a meme-stock, Dogecoin. In a seemingly endless cycle, squeeze/short mentality prevails among one-tap traders, regardless of volatility. Paying attention to the ticker of Doge feels like watching a tennis match- the movement is so back and forth. There is only a sliver of hope for buying at the right time, and the margin for losses are always high.