GameStop surge reportedly under federal investigation for possible manipulation
Several US government agencies are investigating the GameStop stock brouhaha to determine whether there was market manipulation involved, The Wall Street Journal reported. An enthusiastic group of day traders on Reddit’s r/WallStreetBets board encouraged each other to buy the stock and created what’s known as a short squeeze.
The Department of Justice and the San Francisco US attorney are seeking information about activity surrounding GameStop’s stock by brokers and users on Reddit and other social media sites. Prosecutors have subpoenaed information from brokers, including Robinhood, where much of the trading activity occurred, the Journal reported.
During a two-week period that started in January, GME rose by some 500 percent, hitting…