GameStop stock halts trading after Reddit drama

GameStop stock halted trading briefly Friday
Photo by Johnny Louis/Getty Images

Trading in stock of video game retailer GameStop (GME) was halted briefly Friday, as it soared more than 70 percent, due partly to the enthusiastic support of a group of Reddit day traders.

The stock is up more than 250 percent year to date, rising sharply last week after GameStop announced Chewy CEO Ryan Cohen was joining its board, CNBC reported. Short-seller Citron Research predicted the price would drop, but members of the Reddit board r/wallstreetbets, who had been generating interest in the stock, criticized Citron on the Reddit message board and continued praising the stock on social media.

The hype generated by r/wallstreetbets helped create what’s known as a “short squeeze” on…

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Author: Kim Lyons