GameStop shares plunge as traders dump stock

Reddit-inspired surge in stocks such as struggling video games store and AMC dive as hedge funds close positions

Shares in GameStop plunged by 65% in early trading on Wall Street as the trading mania sparked by small investors, that sent its stock surging and cost hedge funds billions of dollars, lost momentum.

The struggling Texas-based video game store chain has been the focal point of a battle by small traders, using forums such as Reddit, to punish Wall Street hedge funds that have bet on certain stocks falling in value. GameStop shares hit a high of $482 last Thursday but slumped to $80 shortly after the market opened. They recovered to $117 by mid-session, but closed down 60% at $90.

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Silver price hits eight-year high – business live

Rolling coverage of the latest economic and financial news

Neil Wilson of Markets.com suggests that large investors may also be driving the silver price rally, rather than it simply being caused by retail traders.

He also warns that such speculation is risky, and usually ends badly for some of those who get caught up:

The fact that such a large and liquid market as silver can be targeted by retail investors says much about the shift we are witnessing, though despite appearances this morning it’s going to a lot harder to squeeze silver shorts as the market is so much deeper and more liquid.

We should also note that some bigger smart money may have be front-running this trade to piggyback the rally and further fuelling the move up. (George Soros: “When I see a bubble forming, I rush in to buy, adding fuel to the fire.”)

Allianz’s Mohamed El-Erian has tweeted that GameStop and silver are not the same kind of short squeeze trade (as some WallStreetBets posts have also been pointing out).

El-Erian also cautions that the silver squeeze could undermine the squeeze on hedge funds who shorted GameStop’s shares, as the GME trade depends on keeping retail investors on board (rather than selling to the hedge funds).

.#GameStop and #silver are not the same for those pursuing the short squeeze trade
The silver market is much larger;
Existing shorts are smaller;
Some of the #HedgeFunds that are short #GME are said to be long silver
Bottom line: A dissimilar trade that eats away at #GME gains https://t.co/TMfpkr7QDE

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PURE Bioscience Receives USDA No Objection Letter for Use of SDC-Based PURE Control …

PURE Bioscience Receives USDA No Objection Letter for Use of SDC-Based PURE ControlA Antimicrobial in Poultry Processing for Pre-OLR and Post Chill Applications PURE Bioscience, Inc. , creator of the patented silver dihydrogen citrate antimicrobial, today announced that it received a "No Objection Letter" from the USDA's Food Safety and Inspection Service granting approval for SDC-based PURE Control to be used as a spray or dip applied to poultry carcasses, parts and organs in pre-OLR and post chill processing of fresh poultry. PURE Control will be listed in FSIS' Directive 7120.1, "Safe and Suitable Ingredients Used in the Production of Meat, Poultry and Egg Products" in the next scheduled revision.