David vs. Goliath. A band of retail traders on r/WallStreetBets has executed a short squeeze on GameStop ($GME) that has brought multi-billion dollar hedge funds to their knees. Melvin Capital requires a bailout.
The Halt: In an unprecedented move, brokerages like Robinhood restricted buying of the volatile stocks, citing clearinghouse capital requirements. The outcry is massive. Calls for regulation and investigation are deafening.
The New Market: Narrative is now a fundamental. Flows dictate price, not earnings. The democratization of finance has unleashed a chaotic force that Wall Street does not yet understand.