Arab Press

بالشعب و للشعب
Wednesday, Aug 05, 2026

The Reddit-fueled GameStop rally is reportedly under federal investigation for possible market manipulation - and Robinhood has been subpoenaed

The Reddit-fueled GameStop rally is reportedly under federal investigation for possible market manipulation - and Robinhood has been subpoenaed

Authorities are probing whether the army of Reddit traders manipulated the market by spreading false information to lift highly shorted stocks.
Federal authorities are probing the retail-trading phenomenon that boosted shares of GameStop, AMC, and other highly shorted stocks throughout January, the Wall Street Journal reported Thursday, citing sources familiar with the matter.

Prosecutors and regulators are investigating whether the frenzy of day trading was a form of market manipulation or other illicit activity. The Justice Department's fraud arm and the San Francisco US attorney's office are seeking information from brokerages and social-media platforms that fueled the trading activity, the Journal reported.

Robinhood Markets, the discount brokerage popular among the investors involved in the rallies, has been subpoenaed for its role in the event along with other brokers, according to the report.

Shares of GameStop and other recently unloved companies skyrocketed last month as members of the Wall Street Bets subreddit furiously piled into the stocks. Posts urging more traders to buy shares reached the top of Reddit's "popular" page, exposing even more novice investors to the trend as shares surged higher.

Reddit users also cheered the trade as a way to drive massive losses at short-selling hedge funds. Language on Wall Street Bets took on a populist tone that pitted the everyday trader against the Wall Street establishment.

Separately, the Commodity Futures Trading Commission is investigating how the horde of casual investors aimed to bid up silver by trading futures and a silver-tracking exchange-traded fund, according to the report. Wall Street Bets traders pivoted to silver shortly after GameStop shares fell back to earth. More recently, the crowd has targeted cannabis stocks for their next bullish bets.

Proving the GameStop phenomenon was a case of market manipulation requires authorities to wade into a murky regulatory environment. Officials would need to prove that investors used online forums to disseminate incorrect information and lift shares to an artificially inflated price. This kind of manipulation is commonly known as a pump-and-dump scheme.

Decoding such a scheme is made harder by the anonymous nature of Reddit accounts. Posts calling on more traders to buy shares were also largely comical and enthusiastic in nature and lacked claims about companies' underlying businesses. While some Wall Street Bets members stood out for their outsize gains or popular memes, most blended into the army of faceless day traders.

Lawmakers have also shown interest in dissecting the event and how it exploded into the mainstream. The House Financial Services Committee is slated to hold a hearing on February 18 on the matter. Rep. Maxine Waters of California said last week she wanted representatives from GameStop and Robinhood to testify along with Keith Gill, a Reddit user who allegedly made millions off the GameStop rally.

Senate Banking Committee Chairman Sherrod Brown indicated last month he too aims to hold a hearing.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Arrest Warrant Issued in Lebanon for Tycoon Spotted Meeting Netanyahu in Washington
Trump says Israel ‘would not survive’ without US
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Spain Defeats Argentina in Extra Time to Win Second World Cup
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
US Retaliates Against Iran After Two American Troops Killed in Jordan
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
×