Keith Gill lost more than $ 13 million due to a fall in GameStop stocks

Investor Keith Gill, who supported the mania on speculative purchases of shares of the American video game retailer GameStop on the Reddit social network, lost more than $ 13 million due to a fall in the price. But Gill says it still holds the stock, according to CNBC. Shares of GameStop lost 60 percent in value on Tuesday, but are still well above what they had before the Reddit crowd became interested. Gill appears on Reddit under the pseudonym DeepFuckingValue and on YouTube as Roaring Kitty.

Wall Street on its feet

Gill helped unleash the speculation about speculative purchases to provoke a sharp rise in prices. The crowd focused on the shares of companies where large hedge funds sold shares by so-called short selling. However, if prices start to rise with this strategy, the funds are forced to start buying stocks so that they can close positions. Thus, their purchases will intensify the growth of the exchange rate. Developments around GameStop stocks caused a stir across Wall Street. The crowd of investors from the social network gathered in the WallStreetBets group also focused on the shares of other companies, which caused similarly strong growth. Some brokerage firms then decided to limit their trading in these shares, which they justified by the protection of their financial health and the need to comply with regulatory requirements. The financial losses of clients and the increase in the volume of trades require brokerage firms to maintain a set amount of cash to cover immediate liabilities to clearing companies and others.