Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

WallStreetBets founder on GameStop stock surge: The little guys ‘can’t be ignored anymore’

WallStreetBets founder on GameStop stock surge: The little guys ‘can’t be ignored anymore’

Pent-up emotions are just beginning to surface and its ‘absolutely fascinating to watch,’ Jaime Rogozinski said

Jaime Rogozinski, who created Reddit’s WallStreetBets, discussed on “Mornings with Maria” on Tuesday how the forum morphed into a force so powerful, it sent GameStop shares surging and rattled Wall Street.

“The little guys can’t be ignored anymore,” Rogozinski told host Maria Bartiromo of the GameStop trading frenzy, adding that the “little guys figured out a strategic way to push back.”

“They knew that their disadvantage was money and they overcame it,” he continued.

Rogozinski also told Bartiromo that “worldwide I see there’s a lot of sentiments that have been pent-up for a while that are just starting to surface so this is just absolutely fascinating to watch.”

Stock restrictions on Robinhood were put in place last week as the mobile brokerage app confronted high trading volume. The high volatility was spurred by the speculative investing discussion forum WallStreetBets. The group of Reddit users banded together to buy up GameStop's call options, causing the struggling retailer's shares to soar to unprecedented levels and hurting market short-sellers. The group then proceeded to target other heavily-shorted stocks.

Rogozinski argued that “Pandora's box is open” and “there's no going back at this point.”

“This has been a long time in the making,” he added.

“There’s been, over the past 10 years, access to Wall Street and financial markets through, first discount brokers, now free brokers, these app-based brokers that give the little guys access to the system and Wall Street,” Rogozinski noted. “For too long it’s been too hard and too expensive and too inaccessible.”

He went on to point out that now that retail investor participants “have access to this, it’s really difficult to turn the clocks back.”

On Friday morning, short sellers were facing more than $19 billion in combined losses on GameStop, according to an estimate provided to FOX Business by financial data service Ortex.

“I think it’s sad that a lot of people ended up losing money,” Rogozinski said. “I suppose it’s good that they’re starting to address this.”

On Sunday, President Biden’s top economic adviser said the administration will take a look at the legal questions surrounding the market activity of GameStop shares, which soared to astronomical levels last week, The New York Post reported, citing comments made on NBC News’ “Meet the Press.”

“I could tell you the SEC [Securities and Exchange Commission] is focused on understanding fully what happened here. And their focus is on protecting retail investors and also the integrity of the market,” Brian Deese, the head of the National Economic Council, reportedly said.

The SEC said on Friday that it is monitoring developments and will “act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws.” In addition, New York Attorney General Leticia James said she would launch her own review into the market activity.

Rogozinski stressed that there must be a “shift of mentality,” which he noted comes “in many different ways,” including from a regulatory or legal standpoint.

“But whatever it is, they have to consider the little guys because the little guys have now gotten together in such big numbers that they cannot be ignored anymore,” he continued.

Rep. Alexandria Ocasio-Cortez has floated the possibility of an investigation into the matter by the House Financial Services Committee, which has received bipartisan support from other lawmakers like Sen. Ted Cruz, R-Texas, and Congressman Ro Khanna, D-Calif., as well as business leaders like Tesla CEO Elon Musk. Ocasio-Cortez added that the inquiry should "not be solely limited to Robinhood."

Other competitors who previously restricted securities include TD Ameritrade, Charles Schwabb, WeBull, E*TRADE, and Interactive Brokers.

Senate Majority Leader Chuck Schumer, D-NY, said in a tweet Sunday evening that any SEC and Congressional investigations of decisions to restrict access to trade GameStop "must happen ASAP."

"We cannot have a stock market where players are also refs," Schumer said.

On Sunday, Robinhood narrowed its stock trade restrictions from 50 to eight companies, including GameStop, AMC Entertainment Holdings, and BlackBerry Limited.



Robinhood co-founder Vladimir Tenev said in a Twitter thread on Thursday that as a brokerage firm, the company has many financial requirements, including "SEC net capital obligations and clearinghouse deposits", which fluctuate based on market volatility and exist to "protect investors and the markets."

"It was not because we wanted to stop people from buying these stocks," Robinhood added in a blog post. "We did this because the required amount we had to deposit with the clearinghouse was so large—with individual volatile securities accounting for hundreds of millions of dollars in deposit requirements—that we had to take steps to limit buying in those volatile securities to ensure we could comfortably meet our requirements."

“These retail investors shouldn’t have to worry about these clearing house mumbo jumbos,” Rogozinski said.

“It’s obvious that the system was not designed with them in mind, it was designed for large Wall Street institutions and now that these amateur traders, these retail traders are getting involved, it’s never been more evident that the system was never designed for them to actually participate and have control over their participation in the financial markets.”

He went on to say that “there needs to be a bigger conversation regarding the playing field” so that “retail traders are taken into account with the rules.”

“The system was clearly designed for the big guys and the little guy obviously have a seat at this table and they need to address that,” he continued.

Rogozinski then pointed out “the other thing that needs to seriously be addressed,” which he said “is the strength of the system in Wall Street.”

“It is too weak,” Rogozinski noted.

“We saw the entire thing come down crashing 12, 13 years ago and we are starting to see cracks of things that were never addressed,” citing “the clearing house process” and other “very technical things.”

“Obviously we still get flash crashes, we still get all sorts of different things, but with so many participants, we need to see the system strengthen so that it can withstand all the participants inside this market,” he continued.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
×