Exclusive Interview CNBC : Reddit trading frenzy could cause ‘systemic event’ in markets

GameStop shares surged 1,625% in January !! (Yeah.. that is accurate figured!) 

And inflicted a mark-to-market loss of almost $20 billion to hedge funds with short positions against the stock, according to data from S3 Partners.

Paul Gamble , co-founder of MBMG Group had Exclusive Interview with CNBC on 1 Feb 2021 on this topic. 

The retail trading flood fueled by Reddit could pose a systemic risk to markets, according to Paul Gambles, co-founder of investment advisory firm MBMG Group.

“If this is telling us something about the general health of the markets, that is a broader concern,” Gambles told CNBC’s

Gambles said this could cause a “systemic event” if brokerages begin to fail, highlighting Robinhood’s trading restrictions in various stocks last week.

However, Gambles also suggested that there could be a systemic risk from the hedge fund side.

Read full article on CNBC  : Reddit trading frenzy could cause ‘systemic event’ in markets, strategist says