From Matt Levine’s “Money Stuff” newsletter, on what happened when /r/wallstreetbets directed their collective might on Gamestop, precipitating $17 billion dollars of stock trades and inflating the stock by 180%:
Here (via Robin Wigglesworth) is a post on Reddit’s r/wallstreetbets forum asking “Can I get a flair for buying GME at the literal top ($155.29)?” (It was not the literal top, but close.) “This is the way,” a chorus of redditors replied. It is a way! Gleefully getting top-ticked on a stock—buying it at its highest price ever and then bragging about it as the price collapses—in order to earn the strange respect of your friends on Reddit: That is a thing you can do. You might enjoy it. I am not going to say it is irrational; people have spent their money on worse things. But it is not the sort of rationality that the stock market is set up for. “When stock prices get too high, sensible value motives will take over”: Nope.
The stock exchange is weird. People on the internet are weirder.