Progressive Senators Bernie Sanders and Elizabeth Warren called for action on Sunday to reform Wall Street, rocked by the GameStop soap opera. "It's time for the SEC [Securities and Exchange Commission, which regulates US stock markets] and Congress to make the economy work for everyone, not just Wall Street".
Hedge funds: Hedge funds are alternative funds or investments employed by investors that aims to profit over investment by short-selling on failing stocks.
"People on Wall Street only care about the rules when they're the ones getting hurt".
Jordan Belfort warned investors to "be careful".
"If you happen to make money, pull the original investment out and play with the house's money".
The CIDs, the civil equivalent of a subpoena, were sent following a week-long slugfest in which retail investors bid up shares of video game retailer GameStop and other out-of-favor companies, resulting in huge losses to big hedge funds that had shorted those stocks.
Users then began buying up shares in these companies, which forced the price up and for these hedge funds on Wall Street to lose billions and billions of dollars.
The title of GameStop has been soaring for a month and in particular this week, an army of amateur investors having made a decision to buy massively the share of this chain of video game stores, whose financial health and growth prospects however, leave something to be desired.
Shares in GameStop rose again on Friday (29 January), increasing by 68 percent. Thus, as its stock price shot by nearly 8,000 per cent within six months.
That's why Warren believes the SEC should investigate the GameStop saga: to ensure a set of players isn't manipulating the market, treating it like a casino and preventing everyday investors from taking part in the free markets.
A spokesperson for the UK's Financial Conduct Authority said: "The FCA is aware of the situation and continues to closely monitor trading in United Kingdom markets". Citron Research managing partner Andrew Left, a target for impassioned investors on Wall Street Bets, announced the firm would stop publishing "short reports".
Short selling is a complicated, high-risk trading strategy.
Two large online trading platforms moved to limit trading in shares of GameStop and other companies that had been caught up in the recent "melt-up" in their share prices.