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Ethics of the GameStop Short Squeeze

By Doug McConnell

Recently a large, loosely coordinated group of individual ‘retail investors’ have been buying up stocks that certain hedge funds had bet against (i.e. ‘shorted’). In doing so, the retail investors have driven up the price of those stocks. This has caused hedge funds that shorted the stock to lose billions of dollars and enabled a number of retail investors to get rich in the process. The phenomenon is anthropologically interesting because it is symbolic of a shift in power away from the traditional Wall Street players towards less wealthy, less well-connected individuals. But what are the ethics of this? Did Average Joe Trader just bring a measure of justice to Wall Street? Or did the mob unethically manipulate the market? If they did, are their actions any more unethical than the usual behaviour of institutional investors?Read More »Ethics of the GameStop Short Squeeze