4 Min Read
BOSTON/LONDON (Reuters) - Wall Street is gearing up for another week of market mayhem, with signs that the retail frenzy that pumped up the stock prices of the likes of GameStop Corp and AMC Entertainment Holdings Inc is spreading to other assets.
Slideshow ( 2 images )
Some of Wall Street’s largest hedge funds are still licking their wounds after retail traders sought to drive up the prices of stocks that were heavily bet against, resulting in large losses for major investors.
Melvin Capital, a hedge fund at the center of the GameStop drama, lost 53% in January but received commitments for fresh cash from investors in the last days of the month, Reuters reported on Sunday.
Federal prosecutors and regulators are investigating whether "market manipulation or other types of misconduct" led to a meteoric rise in shares of companies such as GameStop and AMC, the Wall Street Journal reported on Thursday.
Executives from Robinhood, Melvin Capital and Citadel Securities are expected to testify before a House panel at a Feb. 18 hearing exploring trading turmoil in GameStop Corp and related stocks, said two sources familiar with the matter.
Reddit Inc has doubled in value to $6 billion as the social media platform at the heart of last month's retail stock trading frenzy raised more money to handle the rush of new subscribers.